Just one moment, one second and it would have been the end of my trading month 🏁. A few points higher and my position would have been liquidated. But the upward movement has stopped before it happened. Right now I sit and pray 🙏 that the price will go down. And this is just one Litecoin position.
It started yesterday after work when I decided to trade actively 👨💻. Just started opening short and long position like crazy.
Everything was cool. Before falling asleep 😴, I closed almost all my positions. Left only ZRX (long) and LTC (short). My equity increased and I went to bed with a smile on my face 😀.
In the morning, the positions I left showed the same result. But then the Litecoin price rally has begun 👀. +12%. And I have a short position. With no stop order, of course. It showed me minus $300 😨. I didn’t want to close the position, so I started averaging it. And came to the verge of liquidation 🤦♂️.
I noticed one very cool button — Net aggregation. I knew about it before but did not use it often. It is very convenient with it, as you can find the average position price ✍️. It helps me in setting up take profits.
Since I almost messed up, I should at least tell you about my strategy 📊.
People call it Higher high ⏫. The rules are simple: we wait for the formation of two green candlesticks 🟩🟩 on any timeframe. The close of the second candlestick should be higher than the maximum of the first one. Then we wait for the red candlestick 🟥 and as soon as it closes, I open a long position. The target is reached when the price moves up at the height of two candlesticks. The stop order is placed below the pattern low or below the low of the first candlestick.
Similar thing with short positions.
You may ask, “So why you are sitting with such a minus and averaging the position?. 🤨 It’s simple — psychology. If you forgot to place one stop, then something will go wrong — an unwillingness to accept a minus, a desire to make a comeback, and dull confidence that the market will go down 📉.
If I don’t lose everything, I will describe tomorrow additional rules of my strategy. Some moments I have deduced for myself during writing trader’s diary. Wish me luck 🤞.
- ROI for today: + $194, that’s + 25%.
- ROI for the last trading week: +88%
- ROI since the beginning of the trading month: +91.4%