Hello everyone, I am going to briefly cover one of my favorite trading strategies, Base trading. This is so simple, yet it yields me some really good weekly returns.
What are bases? Bases are the lowest current support during a specific time frame. On the chart above, the bases are indicated in blue horizontal lines.
What is my Base Trading strategy?
When the price of a coin drops 5% or more from it's original base, and the past data for the coin shows 80% or more the price of the coin has successfully gone back up to it's original base price. I use 5% stop loss on all trades.
Yes, you read that right, 80%+ of the time this strategy is profitable. Let's do some quick math below.
5 trades daily = 35 trades per week.
28 trades win for a minimum 5% profit each trade = 140% cumulative profit.
7 trades loss for 5% each trade = -35%
Total profit = 105% cumulative
You can use a 10% stop loss to have a slightly better success rate.
Below is the previous stats for the coin chart above:
Bases respected (how many times the coin has gone back to the original base support)
10/11 (10 out of 11 times)
90% respected in
See Live stats of my Base Trading Strategy Plays --> http://goo.gl/VKTZMS