What are the most effective strategies of cryptocurrency trading which you should use in 2020?


Hello everyoneI hope everyone is doing okay and enjoying the bull markets. Here you will know the most effective strategies of cryptocurrency trading. In this post, I will the strategy you should backtest it don't believe that a simple strategy can make you a bitcoin millionaire.  Just because some youtube trading mentor told you so go test this strategy for yourself before losing money. 

Which are the most effective strategies of cryptocurrency trading?

The new strategy if you are not a new trader you must be familiar with this indicator. If you have never heard of it don't  worry we will take a look at what does it mean to make this stands for moving average convergence divergence which is not the most effective way to say. 

What are the most effective strategies of cryptocurrency trading which you should use in 2020?

It is a leading trend-following momentum indicator which uses two different exponential moving averages. You can see  uses 12 periods  and 26 pairs  but the main advantage of   comparing to moving averages is that  moving averages just indicate trend  while making indicates both the trend  and the momentum  because it shows us the momentum shows us the strength of the trend.  That is why it is one of the most used indicators by traders first I will show you how to read the indicator to check the indicator

I will use which you can  use for free  after opening the trading wheel you can  add an indicator clicking this button. You can search for any indicator you  like  as you can see  has one blue and one red line and it also includes some red and green bars the zero point is our baseline. The red line is called the signal line  and the blue line is called the line reading make the indicator is really simple. When the blue line crosses up the  red line below zero points it is  considered as a buy signal  and when the blue line crosses down the  red line over the zero point. 

It is considered as a sell signal but we should be pickier and try to look for signals that are far from the baseline. You can never trade trusting on only one indicator. Now, let's take a look at bars show  us the difference between two lines. It can be hard to see but when you check  the baseline point  you can easily see that the height of  the bar equals to the difference between the two lines


Now you know how to read to make the indicator but you should never trade using one single indicator. You should use an indicator is to use it with technical analysis tools such as candlestick or many other indicators. It makes the indicator has one big disadvantage the mech indicator by itself is not enough to identify the long term the direction of the trends. If you want to be a great trader in the long run you should always be trading in the same direction as the trends.  

You will be most likely to lose money if you bet against the trend to identify the long the run trend, we will be using 200 periods in our strategy. We will have a couple of rules to follow in order to await mistakes. We have three basic rules which will make us picky but they will increase our win ratio. 


Our first rule is to only penetrate random make this signal and the trends are in the same direction. Our the second rule we should only take trends when the crossover points of lines are far from the zero points our last rule is really simple but it is one of the most important rules for any trading. We should always set a stop loss and our the reward ratio should always be higher than if you don't know how to calculate the watt ratio you can check our post. The last rule should apply to all of your trades if you want to make money in the long run. 

Now let's do some practice and look at some charts to find great trades first I will take a look at the 4-hour  bitcoin us dollar chart and try to find possible trades. It is the time frame which I usually use while seeing trading here you can see our first-rate. We have a possible trade because the price is over 200 and our crossover is far from the baseline. 

So, I will open a trade with the watch ratio of at least two,  what I mean by reward ratio is I will roughly one per cent of my capital to win more than two per cent as you can see our first-rate was a win. So let's say that our capital was a thousand dollars with the first trade we took we made 20  profits. Here you can see our second trade which also satisfies our first two rules. So I will open under trade there again I  will only one per cent to make two as you can see our second trade was also a winner.

YOU MUST READ THIS POST TO KNOW MORE:  How new traders help in getting safer side of trading?