I entered 2 trades on the 24 August. My losing trades were on Bitcoin and Dogecoin. If you don't want to read through the details of these trades the simple lesson learned was that I need to amend my rules not to trade 2 separate assets in the same direction on the same day!
Let us look at my Bitcoin trade to start with which was a Turtle trade.
The turtle strategy is straight forward, you enter a long on a 20 day high in the price and that is what I had done. This was actually the type of price formation in making a 20 day high that I prefer. What I mean by that is that there isn't a straight move up into that 20 day high but a gradual move within a range with a tight breakout.
If I had entered as soon as it had made the high and hadn't waited for the candle to close I might still have been in the trade because the stop loss is 2 times the ATR and would have been at a price lower than where the wicks on subsequent days had stopped me out.
The other trade was on Dogecoin, which was taken on the basis that I believed a price reversal was potentially playing out. See the chart.
There had been a significant sell off with a huge volume candle. I waited as the price action formed within an ascending triangle. Any break from that, if with volume was to be considered by me as a confirmed reversal in the downward trend.
The price did break out cleanly from the ascending triangle and I entered with a stop loss below the breakout candle. As you see the price then got rejected. After the price broke back into the triangle there was an argument that I should have 'cut my losses' but my trading strategy is to actually not touch that stop loss at all. For me this is a much easier approach than playing around with it because such behaviour for me makes me indecisive.
I am now at the stage where these losses do not bother me. The only take away is that given the massive volatility in crypto I commit to myself not to ever have more than one trade ongoing, made on the same day in the crypto market. Reason being that generally crypto as a whole moves in the same direction so you double your risk if putting on 2 separate trades.
Trade Clearly!
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