Step 1: Only buy when 1day StochRSI is and above 30%
Step 2: Only buy when 4hr StochRSI is and above 30%.
Caveat: 4hr crossovers must also be below 50% (eg a bear trend turning to bull at 90% is avoided)
Trades are stopped when 4hr StochRSI turns bear and is below 70% (will consider entering early for extreme circumstances)
BTC has now confirmed step one, however, Step 2 is not confirmed, so now I wait patiently.
Note: Price has gone down about 3.5% since Step 1 initially fulfilled, so good decision to not enter trade.
However, the 4hr has a bearish crossover, ruling out Step 2. Again, I should wait for midnight to confirm. However, it been a long day, I am knackered and the 1hr StochRSI is on the way down, so little chance the 4hr will reverse in the next 30 minutes.
The single biggest cause of trade failures is emotion. One of the purposes of creating a set of personal trading rules is to avoid emotion.
For the last few days price has been increasing in general and its tempting to enter a trade. However, the rules laid out in the steps have not been fulfilled.
If I enter a trade now, 1 of two things would occur:
- Make profit, thus invalidating our rules before even testing them
- Make a loss, thus 1) proving the rules are good 2) proving I am an idiot 3) making a loss
So in my head I look at the numbers and repeat the mantra:
"Hold Your Nerve"
4hr StochRSI, has just passed Step 2 requirements.
Entering trade now.
Pulled out of the trade on 16th at 8050
When entering a trade check the 1hr interval to improve the timing of the entrance.
With this in mind, a trade that would have been made on 18th, was delayed
A) because I was asleep
B) further delayed due to new sub rule.
Enter trade at 7926