Crypto week 5 summary
week 5 bitperp trading summary
Object: BTC Perp (5x).
Amplitude of the move in the object: +1.93%
Return: 1.3% (before commission); 0.3% (after commission)
Narrative on the market:
This is the first week since Week 1 that we've seen Bitcoin's goes up. It has been a tough week, marked by continuous whipsaw action, challenging both bears and bulls. With my original trading method, it was difficult to find entry points, so I adopted two other methods to try to identify additional entries. Some trades were successful, while others were not. Below are my trades for the week.
- July 6th:
- At 8 AM, after two wild bars following four inside bars, I finally found a breakthrough. I bought at $56,800 with my regular exposure, setting a tight stop at the previous low of $56,400. Although this stop was tight, I believed that if the trend formed, it shouldn't return to that point. This trade was as beautiful as art. While my account rode the trend, I took a two-hour walk on a trail. As the trend progressed, I gradually increased my stop-loss, ultimately setting it at $57,700, which eventually got me out during the night. This trade rewarded me with a 4.9% gain.
- Several attemps:
- I couldn't find any entries in the 4-hour bars. Impatience drove me to lower timeframes to find more opportunities. I tried, and I did find two entries along the week in 1-hour charts, highlighted by the yellow circles. I shorted these two positions. Both trades started well and developed as expected.
- For example, the first attempt happened on July 9th at 8 PM. I shorted at $57,946, and it smoothly went down to $57,315. But that was it. The whipsaw came, wiped out my profit, and eventually got me out at my stop-loss of $58,200. Both entry and exit happened within the same 4-hour bar. I was fortunate to have a tight stop, so I wasn't hurt by the following big green bar.
- Another attempt occurred on July 11th at 8 PM. I shorted at $57,300, and it went down to $56,588 without any issues (I still remember the delicious paper profit when I wrote the summary). The stop-loss was at $57,400, reasoning that if the trend formed, it shouldn't return to the opening of the previous bar. The following two bars looked good, tight, and inside. But suddenly, after the CPI came out at 8:30 AM, the market became agitated. My position was stopped out during the big green bar due to the CPI.
- Both attempts pretty much wiped out my hard-earned profit from the first trade. They were both bad and good at the same time. Honestly, these two trades weren't bad from my perspective. My entries were good (from the 1-hour chart), and my stop-losses protected me from larger losses. I think the issue was my impatience. If I traded in the 1-hour timeframe and knew the environment was whipsawed, I should have adjusted my profit-taking strategy for shorter-term trades or perhaps avoided entries at the 1-hour timeframe altogether.
Current position: Short.
