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▲ Virtual Asset Trading
In the virtual asset market, the number of individual investors going bankrupt due to volatility is increasing. On the other hand, the secret of a professional trader who consistently earns stable profits every day through a mechanical trading system and thorough risk management has been revealed.
On May 24 (local time), in an interview with Altcoin Daily on the cryptocurrency YouTube channel Crypto Lifer, virtual asset investment expert Sam Price analyzed, "A daily day trading profit of around $100 is a target that can be sufficiently achieved in the market." He explained that setting a weekly target of $500 rather than a daily one is more effective for flexible response. When trading volume supports it, Price uses $2,000 in assets and 30x leverage to generate $500 to $1,000 in profit roughly every two days. He rigorously refrains from trading during major holidays like Memorial Day, Thanksgiving, and Easter, when liquidity is low and stop-losses are easily triggered.
Price emphasized building a trading system that can be repeated infinitely, free from emotions, and limiting technical indicators to a maximum of four. He set 21-day, 50-day, 80-day, 100-day, and 200-day simple moving averages on his chart and backtested past patterns by combining the Relative Strength Index (RSI), Stochastic Relative Strength Index (Stoch RSI), and Moving Average Convergence Divergence (MACD). He uses short-term minute timeframes like 1-minute or 5-minute charts to first check for bullish divergence, where the price falls after a price drop, but indicators rise. Then, when the price moves above and settles on the 200-day moving average, and the 21-day moving average and price converge within a wedge or flag pattern, he makes a surprise entry.
He explained that the key is to always set a stop-loss for 99% of trades, not fear losses, and meticulously calculate the risk-reward ratio. He uses the area directly below high-volume nodes, where supply and demand zones are thickly accumulated, as a stop-loss shield by displaying the Visual Range Volume Profile indicator. If the price rises as expected, he immediately moves the stop-loss to the entry price (break-even) to make the risk zero. Price states that keeping money earned from leveraged trading in the account often leads to increasing stakes and losing everything, so whenever profits accumulate, he buys Bitcoin (BTC) for long-term holding or isolates funds through real estate investment to convert them into real assets.
Regarding Bitcoin's future long-term bottom outlook, Price pointed out that there is a high probability, over 90%, that Bitcoin has currently formed a bottom around $60,000 based on macroscopic indicators. However, the closing shape of the May monthly candle is very important for a definitive confirmation of an upward trend. When timing bottom purchases, he combines the Bitcoin 2-week chart with the Fear & Greed Index. When the index dropped to an extreme fear level of 5 and the Stochastic Relative Strength Index on the 2-week chart entered the oversold zone below the lower dotted line, it was, without exception, a historical opportunity to buy at the bottom. Price used these indicators to massively accumulate Bitcoin during the past COVID-19 pandemic crash and in the $19,000 range.
Currently, Bitcoin is in a double-bottom formation phase, coming down to reconfirm the low after the previous decline. Even if the worst-case scenario unfolds, where the market faces massive selling pressure and major support lines completely collapse, strong support will emerge at the final line of defense for this cycle, around $38,000, acting as the true bottom of the entire cycle. To succeed in virtual asset investment, unwavering determination to create opportunities for oneself without being discouraged by market downturns, and the discipline to set parameters are essential.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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