i spent probably 3-4 years getting consistent with my day trading which meant using the same risk size per trade
my idea was that the risk didn't matter, i just wanted to focus on the skill of being consistent with trading - taking the right setups and managing the trades correctly
if i focused on the money, it took away from what i was trying to accomplish: knowing when to get into trades and knowing when not to get into trades, as well as when and where to exit or how to trail my positions
instead of the focus being on my pnl for some years, i focused on the cumulative r:r instead. if i could be positive in r:r terms each year, i could naturally scale it up because the most important thing was that my system was profitable
i didn't want to rely on increasing risk to make me a profitable trader. i had done that many times over the years to make up for losses with a wild swinging calmar ratio - but that never bothered me. green pnl did
adjusting the risk after learning the skill of trading has become a simple tweak. i know what my a+ trades are and i know when to scale back when the market isn't producing the goods
this allowed me to be more comfortable when trading because i knew what my system was and i knew what to expect from my trades thanks to thousands of reps
so when i get into something with bigger size now, i don't feel the weight or pressure of the increase in risk. my focus is on the price action and just doing the same thing i've done over and over again regardless of the money
as has been drilled into my brain by @wmd4x - consistency first then size up
this year i've been making that step up in position sizing just in time for next year's bull market 😁
#Bitcoin 2-Week Chart Setup
Back in May, I posted this setup in detail, and it is slowly developing the way I expected.
As you have probably seen from my previous posts, MACD + Stochastic RSI + proper price action and trend interpretation is my favorite setup for identifying an early shift in momentum from a bear-market regime into a bull-market regime.
Although this support level is holding much better than I initially expected, it is becoming increasingly difficult to deny that we are getting close to the bottom.
The yellow arrows mark the exact date of each cycle bottom.
You can see that it usually takes a few months after the bottom for MACD + Stochastic RSI to confirm a strong shift from downward momentum into the early stages of a bull market.
Of course, I will want to start buying before that confirmation arrives.
This time, if the 4-year cycle pattern holds, the bottom should come somewhere between late September and early October.
The MACD histogram is probably one of my favorite tools for identifying divergences and trend exhaustion.
Combined with a strong Stochastic RSI cross above the 50 level and into overbought territory, it becomes a very powerful setup.
The green circles on the MACD show another one of my favorite momentum signals.
Once MACD is well above zero, price retraces into strong support, and a new wave of bullish momentum begins, that is by far the BEST setup within a confirmed bull market to aggressively ape long $BTC with leverage.
This is my long-term plan.
It takes a lot of patience and discipline to execute.
Markets have done the same thing for decades if not centuries and it isn’t going to change moving forward either.
Price + volume + momentum
These 3 things combined are all you need. Zoom out. Catch the bigger trends. Avoid the chop.
Chart crimes (in no particular order)
1) Looking at candlesticks without volume
2) EMA 200 instead of SMA 200
3) dark mode on TradingView
4) declaring bullish/bearish engulfing in sideways PA
5) using both RSI and stoch-RSI
6) drawing divergence with wicks
Discuss
I recorded a 2 hour video showing my entire trading process, with 2 live trades included.
00:00 Intro
01:05 What I actually do in a Trading Session
04:30 The Market Scan Process
06:02 Directional Bias
07:00 Structural Bias
08:54 Trade Quality
18:00 What to do while waiting for trade alerts
24:15 Live Trading Process
31:22 Live Trade #1
01:31:13 Live Trade #2