Writing a Rule Based System

A cryptocurrency system is a set of rules that specify when to open and when to close-out trade positions. To come up with a complete bitcoin system a trader is also required to follow and adhere advanced trading rules that will guide his technique. These rules are also part of the bitcoin system but cover a wider approach of how a trader uses their bitcoin system when opening & closing trade positions.

The following things will also be included within the bitcoin system that a trader will come up in order and so as to make the bitcoin system of a trader complete.

Mindset/Bitcoin Trading Psychology

This section of the trader’s bitcoin system will write down the mindset that a trader will follow when setting their trade transactions using their strategy. Your mindset as a btc/usd trader should specify that you'll only follow the signals generated by your system and you'll not open trades just because the btcusd market has started to move up or move down. If a trade signal ==22==is--notisn't generated by your bitcoin system then you'll not place any trade on the btcusd market. The way you will make sure that you follow only your system is by using bitcoin psychology to control your emotions in trading.

You should be prepared to be disciplined enough when trading to follow what your trading system is saying. You should never go against your system and base your decisions on what the btcusd market is doing. You should be objective when following the rules of your system. This will be a matter of training yourself to follow your bitcoin strategy even when you as a trader make a trade that loses money you must follow your system and close out the trade transaction at the specified level where your rules say the trade transaction should be closed to avoid further losses. Close that trade & wait for another opportunity, there will always be another opportunity to open a trade tomorrow, next week or next month you do not have to stay on one trade until you lose all you trading money and after you miss out on the other opportunities that you'd have had.

You will also have to figure out the best method for your personality so that as you are comfortable with the types of trade that you place in btcusd market. For illustration if you can execute trade positions quickly then you might choose to be a scalper, if on the other hand you are the type of trader who likes to take time before making decisions then scalping may not be the best method for you, instead you should become a day trader or a swing trader & that way you can have enough time between trade transactions to make a decision. By choosing a trade style that most fits your personality is the first thing you should do & after you have made the correct choice of the method that most suits you then you'll have the right mindset when trading & you'll increase your chances of being more successful when trading the btcusd market.

Set Goals To Follow When Trading

You have to know what goal you want to achieve in trading and executing trade transactions with your system. Your goal may be that you as a trader want to follow your bitcoin system all the time and never open any trade that is not indicated by your system. Another goal may be that you as a trader want to be more disciplined when executing trade positions by being disciplined and patient enough to wait out for a signal to be derived & generated by your bitcoin system before you open a trade & that ==22==you'llyou--will not jump the gun and open a trade transaction before the signal is generated. Sometimes a trader may see that a signal is about to be generated/derived by their strategy but it has not been derived/generated in accordance to the rules of the bitcoin system but a trader may decide to open a trade before the signal and wait for the trading signal while they are in the btcusd market, this shouldn't be how a bitcoin trader should trade, traders should learn and know to be patient and disciplined enough to wait out for the trading signal to be derived and generated before you open a trade transaction.

Choose one of the Instruments To Trade

Traders should also specify the crypto instruments that they will be trading with their system. One may create a system which has got a trading strategy that is best suited for trading some instruments only. The trader should therefore only trade with their system when they are trading only these bitcoin price charts.

Most bitcoin systems will produce best results when they are applied to trading liquid instruments & therefore a btc usd trader should make sure that they only trade those trading instruments which are best fitted for their bitcoin strategy. This is why cryptocurrency traders should specify in their bitcoin rules the instruments that they will be trading.

BTCUSD Trade Equity Management Guidelines

For a crypto system to be very successful then a bitcoin trader should make sure that they also specify the btcusd money management ==22==guidelinesrulesguidelines/rules that they will always follow when trading the bitcoin market.

The bitcoin money management method that a trader uses should have a high risk : reward ratio so as to give the trader greater chances of becoming profitable when trading with their bitcoin strategy.

The bitcoin money management should specify at what level a bitcoin trader will close-out a losing position: the trader should also ensure that they close-out all their losing trade transactions at this point.

A trader should also never risk more than 2% of their equity on any 1 single btcusd trade.

The trader should also determine where they'll always take-profit when their trade is profitable. The takeprofit level should be 2 times the stop loss order level. For illustration is a btc/usd trader is setting their stop losses at 25 pips then the traders should set their takeprofits at 50 pips. This is what is known as a high risk:reward ratio to trade with. This risk:reward ratio is 2:1, which means a bitcoin trader can make two times profit the amount that they set as their loss. This way by using a high risk reward ratio means that a trader will be more successful in the long run because their technique uses a high risk reward ratio that means they stand to make two times the amount that they set as their loss.

Keep a Journal

Traders should always keep a journal & this journal will prove to be a very helpful tool when it comes to improving their system.

For example when a trader is designing their system and they want to test it out on the btcusd market, then the bitcoin journal will prove to be a very helpful tool to help them do this. This because while testing out the bitcoin system traders will record all their trade positions on this journal and after a while they can use this trading journal to review their trades, traders can find out why the losing trades made losses & ascertain what factors in their strategies are resulting in generating signals which make losses, the trader then will try to not make these same mistake while trading in the future. One will also try and find the patterns which help them to make profitable trade positions and the BTCUSD traders can then use these patterns to trade with in the future so that they can improve the profitability of their bitcoin system in the future and there help them to become more successful.

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