Fang

Bitcoin / FX system trader, FTX MM.
Inactive; working on a new company full-time :)
Tweets *were* my opinion only and do not constitute financial advice.

[Fang @FangTrades]

Logging in to say farewell; I'm cofounding an exciting new venture and am quitting all manual trading so that I can focus on it full-time (still running my bot though). I loved meeting every one of y'all and had a great time learning from the best along the way. Godspeed, CT ❤️

[Fang @FangTrades]

🎯

$BTC 2H /x/bTxpfDt5

[Fang @FangTrades]

$BTC 3H /x/Ops4hjAO/

Will go short if BTC prints a clean rally back up to 44k

[Fang @FangTrades]

$BTC bias over the next few days should definitely be bearish after seeing that strong rejection from supply and giant gap below

2H /x/KRljcNSk/

[Fang @FangTrades]

@ape_rture Ah yeah, the reluctance to admit fault. Good point.

[Fang @FangTrades]

Poasting setups is a great mechanism for enforcing rigor in the trade selection process

The fear of losing in front of all your followers helps you get your shit together and avoid half-baked ideas. Writing out your thoughts helps you see how dumb they are

Highly recommend 👍

[Fang @FangTrades]

@ape_rture I hedge with spot. The problem hedging with futures is that if the premium suddenly decreases, you're stuck with a futures loss that isn't compensated by a corresponding drop in the price of the perp. If you long fut + short perp, it's kinda like going long on interest rates

[Fang @FangTrades]

The problem with learning to trade using high leverage and a strict stop-entry-target system is it doesn't scale

The bigger your size, the higher your margin reqs in % terms. Eventually you stop getting filled and your stops start slipping to -2R - you hit a natural ceiling

[Fang @FangTrades]

@RektProof What do you mean by 'loose stops'? Like a single stop for the whole position?

https://t.co/fiZBZEAJ4g

[Fang @FangTrades]

To trade bigger size, you have to learn how to manage risk without relying on only a single stop, which requires reworking your entire strategy. Or you just stop using leverage entirely and learn to invest instead. More capital implies lower percentage returns

[Fang @FangTrades]

The best part of trading based on limit orders is definitely that everything can be done asynchronously. I never have to be online for anything

I spend an hour or two every day processing the alerts that come in and spend the rest of my time reading, working out

Life is good

[Fang @FangTrades]

This approach of tightening stops based on the lower timeframes also resolves this paradox.

https://t.co/8GFZDIkRFb

[Fang @FangTrades]

For positions that have run close to target, evolving R says that you should favor taking profit rather than let it run further, since the remaining reward is not worth the open risk even though the probability of hitting target is higher than ever.

Here, RRR trumps probability.

[Fang @FangTrades]

One thing I struggled with as a discretionary trader was determining when to close a swing position as it rode closer and closer to target and further from trailed stops. Backtests show that the targets are chosen optimally, yet in the moment, evolved R is below 1. What do? 1/3

[Fang @FangTrades]

This approach leaves the entirety of the remaining upside intact while capping downside to a reasonable RRR. If the position is still strong (which is usually the case given the trade has run this far), this produces better results than trying to guess the top based on LTF PA.