Turn Profitable With This Winning Strategy!

Disclaimer:

Not Financial Advice & I do not have a course to sell you. I’m just your neighbourhood SG dude documenting my trading journey and hopefully growing an audience along the way. If you like my content give it a like, share, follow!

Now on to this strategy:

The theory behind this strategy is that while price can moves randomly upward and downwards forming ranges and trends, it ultimately falls back to basic candlestick formations. Think of it, each day there is an opening price, a high, a low and a closing price. In the context of SGT the opening timing of cryptocurrencies as I’ve noticed is at 8am SGT. Which means that for a new daily candle to form it will start at 8am and decide whether it wants to go up or go down for the day and close the next day at 7.59am. With this theory in mind, is there a strategy to simply predict the daily bias to go long or go short? Answer yes there is, and it’s not special to me. It’s all over YouTube called the “opening range break” and a lot of traders swear by it. But does it really work on its own tho? Let alone producing a 75% strike rate? 酱厉害? I had to test for myself so I headed to the work station to configure, mix n match with some other stuff. Long story short, I figured it out! Now of course I can’t give this away for free, furthermore I do not have a course to sell you anything. A trader is most powerful when he found his edge, and I think this is it for me. So I’ll only be sharing the skeleton idea and not the actual nitty gritty configurations that led to 75% strike rate and I hope you readers can understand I came a long way with blood sweat tears to reach enlightenment.

The skeleton idea:

Now that you know it’s based off the opening range breakout strategy, what else did I mix and match with? I’d give you a clue - it’s the daily opening price. Recall a daily candle takes 24hrs to form and closes at 7.59am SGT daily? A mix of using the 15min opening range and the daily opening price would give you a solid foundation to find potential entries. Firstly what’s an opening range break (ORB)? It’s essentially choosing your preferred timeframe from the opening time (say 15mins) and drawing a higher and lower boundary of the high and low of the opening 15mins to create a range. Let’s use a 15min chart for example (omit the first 15mins from 8am as it’s vital for the formation of the range): once the price breaks above the high of the 15min ORB with a simultaneous closure above the daily opening price, that’s your potential long entry. Missed it? Break above and retest the top side of the 15min ORB and that’s your retest entry.

Entries/Exits/Invalidations:

Entries would be your 15min ORB break + your price closing above the daily opening price. Exit for profit taking can be adjusted but I found the most value in taking it early. You see I’m not trying to catch a trend with this strategy (tho very very possible and profitable). I’m trying to catch a mini fluctuating range which can produce plus/minus 1-2% depending on your underlying trading pair, and with a sizable position it’s actually enough to get me couple hundreds, if not thousands. Invalidation can easily be places at below the low of the 15min ORB, if not you can overlay a few moving averages and if it goes below the 55EMA for example, get out. No-trade zones include when your price is hovering below your major moving averages and the strategy produces a potential long signal. No trades can also be when volatility is too high coming off extreme expansion of your Bollinger Bands or having divergence on the RSI depending on your liking.

A short summary:

This is the skeleton strategy at its bare minimum and by randomly throwing a dart with this method, for sure you’re going to see some good results but whether it’s good enough is up to you to take it to a higher level with your own entry exit conditions. Please note that I’m not asking you to take any actions on your own investments and trading and this is not financial advice! This post is for my own journaling and also to put myself out there on lemon8 that’s all. 😃

Till next time!

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