This is my typical intraday strategy for Bitmex. This weekend has been very slow--not much happening with Bitcoin, and not much volume. So, the time between trades has been much longer than normal. Nevertheless, I did manage to enter this trade. My strategy is to wait until Bitcoin has established a base for a while (an amount that it has not gone below for several ticks). In this case, the base was around $7,515. I set up an order for $7,510 because I've found that once the base is broken, it usually ends up becoming a free-fall (a "Panic Sell"). This once again proved true, and I opened the trade at $7,510. Since Bitcoin had been trading between $7,560 and $7,240 for two days, I figured $7,260 would be a safe exit. I set up an order to close at that amount ahead of time. However, I could have just as easily watched it fall and exited manually since it fell a further $71. Either way, this strategy has worked well for me numerous times. In this case, it was a 3.5% drop at 25x leverage in 1 hour. This works on all time frames. I tend to get bored waiting for the right setup on hourly charts, so I'll do quick trades on 1 minute and 5 minute charts using the same idea. Hope someone else finds this strategy useful! :)
Comment:
Here is an example of a trade I just took using the 5 minute and 1 minute charts. This strategy works on all time frames, but obviously, the smaller the time frame, the smaller the profit. And, it's always a good idea to use a stop loss, in case things reverse quickly. I also move my stop loss down as the price of XBT moves down.
Comment:
I'd love to hear some other people's strategies. Please share your ideas...