Know that when the price of an altcoin rises significantly OR there is a large amount of volatility: basis tends to rise as a result. Let’s take a look at our first basis chart. The top portion of the chart shows the futures’ price of the asset and the...
A positive basis occurs when spot trades higher than the perpetual, and consequently a negative basis occurs when spot trades lower than the perpetual. Typically, most coins will have a positive basis. The reason for this is partially due to the inability to short spot. It is possible to...
Perpetual contract: A futures contract that is leveraged and never expires. Due to its lack of expiration, it carries a funding rate. Funding rate: The rate that is exchanged between longs and shorts on perpetual contracts. If funding is positive, then longs will pay shorts and if funding is negative,...
Warren Buffett once said,“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” The advice that he stated is exactly how you should approach Bitcoin trading as well. Applying it to crypto, his quote gives us...
There is no one ‘right way’ to place limit orders, however there are methods that you can use that increase the probability that your limit order will be filled at a great price. Take a look at the bulletpoints below for a quick guide as to which price points...
The last thing that any trader wants is to have their stop loss triggered, or worse — have their liquidation price reached if they are trading derivatives. A stop loss is an order to close out one’s position if a certain price has been reached. Conversely, a liquidation occurs...
One of the most common Bitcoin price patterns is the ‘bart’. The bart pattern got its name from a pattern of price movement wherein price shoots higher on high volatility, consolidates and then falls back to its original price on high volatility. The name came from the shape of...
What strategy should I use? Now, let’s put your capital to good use. The optimal way to begin is by adhering to the original suggested capital allotments that can be found within the Choose your Character section. Now, let’s cover how you to physically buy and sell on an...
Not only did this move bart back lower, it went far lower than the original price that the upmove began at around 21600. Notice that when BTC was consolidating above 22000 in the original example, flat lows were made and volume was waning. This combination tends to be highly...
Is the chart below showing the market pattern of a bart and heavy bearish pressure? Or conversely, do you believe that price will continue rising higher?
The correct option to have taken would have been the third option of 90% in BTC bids and 10% in HXRO. The other two options — although they could lead to massive profits, are incredibly risky to take. Furthermore, there is almost never a scenario wherein you would want to...
You sold all of your BTC at an average price of 21500 USD and price has risen without you to the current price of 22832 (seen below). You then placed bids to fill all of your BTC at the price range between 20700 up to 21000. To earn passive...
The best action to have taken would have been to have sold all of your BTC holdings and buy lower. Typically, when Twitter sentiment turns quite positive — a drop in price tends to occur shortly after. Furthermore, ‘selling all of your holdings’ does not mean doing that all...
Your capital is currently 100% in BTC. You see that the price of BTC has increased (BTC price is in orange below) and you start to notice that Twitter sentiment is turning quite positive. What do you do? Sell all BTC Sell half of your BTC Keep holding BTC...
The white arrow denotes the latest price point previously shown to you. The correct action to have taken would have been to sell all of your BTC holdings and bid lower. If you had done this, you would have enjoyed a 28% decline in the price of BTC which...
OKX and Cross-Exchange Arbitrage Video: Click here! Password for the video above is okxxko 1. OKX is far more willing to take US traders (need to use a VPN) and there is a 200,000 USD limit of withdrawal per 24h Click this link here in order to get...
How do I view Bitcoin live as conveniently as possible? To monitor Bitcoin, pick from the charting platforms below. Click the icon in bold in order to head to that charting website. Tradingview: The most popular financial charting site, has a free version and is absolutely recommended for...
Now that you know how to look at the market through a purely probabilistic lens, let’s go over a few different specialties you can use as a model going forward. 1. The ‘I Have Safety in Probability’ Be the type of trader who uses...
Your portfolio is currently made up of 75% Bitcoin and 25% USD. You currently see the pattern below on the hourly chart. What would be the best action to take if your goal is simply to gain as much BTC as possible based on the current market trend? ...
Recall that when using the probability calculator that the probability that any price point will be touched can be found by simply multiplying the smaller of the two probabilities in the results section by 2. Therefore 33.7% * 2 = 67.4%. There is a 67.4% chance that you will...
You sell all of your Bitcoin holdings at 61127 and you are now watching BTC run away higher. You identified the price area of 58400 as a likely stop loss hunt zone but on the current chart below, price did not go there. You are assessing your options and...
Overall, price in the previous chart appeared choppy/merely slightly bearish. This is evidenced by the amount of strong buying volume that can be seen as well as the fact that multiple price candlesticks feature both low and high tails throughout (indicating choppiness/ranging). The price area just below the wick...
In the chart below, you have just sold all of your BTC holdings at the price of 10,000 USD and are now looking at bidding lower in order to gain more BTC. Looking at how bearish/bullish that you believe the chart appears, how far low do you estimate BTC...
To begin, an unrealized loss is an unprofitable position that has not been closed yet and your account is losing paper value. A realized loss is when you close out a position and your account loses physical value. As covered briefly in the probability section, futures and options...
This type of trading can also be done in reverse, where you are long BTC and have set limit sell orders awaiting them to be hit. Let’s go over an example. You bought 1 BTC at an average price of 39300 and have set sell orders at an...
There is another option that you have, and this involves earning a premium if price runs away from your desired entry/exit. This section is intended for advanced traders who do not reside in the US. The HXRO platform offers a product called the BTC tix contract. This is...
A runaway occurs when you sell your spot holdings, looking to buy cheaper in the short-term and then price rises without you. There is no one way to deal with these situations, but below is a list of actions you can take. For these actions below, imagine that...
Almost all (good) trading advice will highlight the importance of managing risk. The reasoning behind this is that in order to make money you need money, if you have no money it can be pretty tough to profit from the markets. With non-leveraged spot trading Bitcoin, you will...
When implied volatility is relatively high, it’s typically a great time to trade spot. Especially on bart-like moves. For example, a common trade that I like to take is to sell my BTC spot holdings while consolidation occurs after a likely bart move upward. I do this because...
Without volatility, it can be tough to make a profit larger than the fees transacted during said trades. That’s why it’s imperative to recognize how volatile Bitcoin is within your given timeframe. You can do this quite easily by heading over to here, where the green line represents...
Many traders fail to take probability into account and instead decide to rely purely on their own analysis of the market. Probability can provide a reasonable estimate for what to expect during a spot trade. The mathematics involved in this section is quite useful but not that complex,...
For those that prefer the safety of numbers, a more statistical approach will likely be the right path for you. Of the various types of traders you can be, you will likely find that this archetype is the least emotionally taxing. The checklist for what you will learn...
Now that you know what and how to recognize various market patterns and you now have the tools to take advantage of herd psychology, below contains a few different versions of how you can be a spot scalper. 1. The Purely Pattern-Driven Scalper Be...
This type of sentiment/market mood collection is far more objective than subjective when compared to methods listed above. Here, look online in the local discord/telegram/reddit/other platform community that you typically participate in. Look for: How do other traders feel about Bitcoin currently? Are many people elated and posting...
Famed equities investor Warren Buffett has always stated, “Be fearful when others are greedy, and greedy when others are fearful.” This type of sentiment holds very true for Bitcoin especially, as Bitcoin has historically been heavily impacted by elements of fear and greed. Gauging the market’s mood...
In order to trade at the highest level, it’s imperative to know the internal factors that can affect your decision-making. Awareness of these biases can and will bring you closer to reality as well as possibly reduce mental fatigue and stress. Gambler’s fallacy If a roulette wheel...
Whether the market is trending or in a period of ranging, pressure will almost always be building up at either recent market highs or lows. A typical pattern of a buildup of market pressure to watch out for is that of flat range lows and declining range highs (bearish)...
Another trading technique you can use to increase your BTC and USD holdings is to recognize zones of trapped traders as support/resistance. You can recognize areas of trapped traders by looking for volume spikes. Volume spikes can be seen by volume candlesticks that are far larger than the average...
There are various price patterns that you will see occur with Bitcoin time after time. The basis for these patterns is not exactly their structure, but rather how they are formed by the past actions taken by various market participants. This section will cover how and when exactly...
For those that want more action and have time to monitor the markets, a scalper approach to spot trading can be a great method to employ. This section will cover how you can trade Bitcoin in the short-term to increase both your BTC and USD reserves by any means...
Now that you know what and how to act during various phases of uptrends, ranges, and downtrends — let’s now focus on how exactly to make the best decisions possible by looking at the different types of a HODLer that you can be. The Pure HODLer Be the...
Dollar cost averaging (commonly called DCA) is a strategy in which a trader places buy and sell orders at various prices in order to buy and sell at favorable prices. Let’s say you want to make money from spot trading on a 10000 USD account with the main...
Bitcoin is well known for its sporadic volatility. When it gets quite volatile, traders are typically caught unaware and don’t know how to respond. With spot trading in my HODL account, I typically favor the ‘set orders and wait’ approach rather than the reactive approach. However, there are...
Trends are typically more persistent than many trader’s perception of what will really happen in the future. This is because the market is in fact not entirely efficient. One glaring reason for this is the fact that BTC tends to trend opposite of where the majority of traders would...
Contrarily, it’s also far easier to increase your USD in an uptrend than it is in a downtrend. This is because during an uptrend, the majority of the market’s movements are higher which allow for ample opportunity to buy lower and sell your BTC holdings at a higher price....
Downtrends are a HODLer’s best friend. It’s far easier to increase your BTC in a downtrend than it is to in an uptrend. This is due to the fact that during a downtrend, the majority of the market’s movements are lower which allows for ample opportunity to sell your...
When HODLing, maintain a focus on just two candlestick patterns. You can research other candlestick patterns if you want to via Google or by referencing my Gravity course. A long wick (also commonly called a tail) signifies a reversal. Looking at the picture below, notice the wick low...
No matter the instrument you are trading, it’s imperative to be able to read the signs of market strength and weakness as detailed from the past actions of market participants. There are three main types of volume, and all must be discerned relatively. Regardless of the timeframe you...
Price can rise or fall at any point in time. There is no absolute guarantee in the future of an event occurring. It does not matter if price is at support, if price is at resistance, or if price has fallen by 20% in one day. These events and...
There are three types of platforms that you can use to lend out your BTC. These include centralized exchanges, decentralized platforms, and dedicated lending sites. Additionally, there are two different types of lending: flexible and fixed. There are more types of lending available on exchanges such as dual investment...
When you sell your BTC and then use that USD to buy lower, you have increased your BTC holdings. If you sell 1 BTC at 50000 and then buy back at 45000 — then you will have 1.11 BTC (neglecting fees). However, it is also possible to increase...
For those that want to increase their Bitcoin by any means necessary, and potentially enjoy some extra cash flow as well — this is the section for you. The term HODL refers to ‘holding on for dear life’, a type of investing wherein one never sells their position....
Welcome to Crypto Welcome to the cryptocurrency trading and investing community. If you’ve made it here, then you are serious about taking the unconventional route — and you are on the lookout for profitable strategies that will survive the test of time. Each section of this guide...
What strategy should I use? It’s time to create your own gameplan for succeeding in the crypto market. Use this first as a primer as you read through the guide first — then come back and see which strategy suits you best personally. Ask yourself: Are you in...
How can I fund my new crypto account? Many traders/investors choose to begin by linking their bank account to their exchange. That way, you can deposit your local fiat currency directly onto the exchange. A less popular option is to link your debit card to an exchange, but...
_____________________________________________________________________________________________________________________ Disclaimer: The content covered in this guide is NOT explicit investment advice and I am not a registered CFA or any other type of financial advisor. The material covered within this guide is for educational purposes only. Always do your own research and only invest based on your...
BTC is the ticker for Bitcoin. USD represents the US Dollar. Throughout this guide, the term ‘USD’ will represent any stable coin or fiat currency that BTC is traded to. Bid is a request to buy at a specified price. Ask is an offer to sell...
Bid catching is a strategy that can perform very well across any liquid market. You can use the code in Ichibot of: buy x bidprice-y, cancel buys, wait 0.1, repeat. Where x is the amount you would like to place a bid for and y is the number...
Arbitrage can also be automated in a countless number of ways so that you do not have to constantly screen for opportunities. The free bot Ichibot can allow us to do that. A simple strategy that I have provided on Youtube is a must watch before you continue reading...
You can arbitrage wix contracts of different dates together. You can do this by purchasing yes wix contracts to shorter dated wix contracts and hedging that by buying no wix contracts to longer dated wix contracts when the payouts allow you to do so. The example below will illustrate...
Different from binary options arbitrage, you can arbitrage the difference between HXRO’s tixwix contracts and other assets. Tixwix is HXRO’s platform for betting on the market rising or falling in two different ways: tix and wix contracts. Tix contracts allow you to bet on whether the index price...
Interest rate arbitrage is a low-risk form of arbitrage in which you borrow one asset and then lend that same asset elsewhere. Many decentralized platforms allow you to borrow various defi tokens, to which you can then lend out those tokens on different platforms at a higher interest rate....
Another way to find such arbitrage opportunities would be to keep an eye out on defi platforms that have recently gotten a fair amount of hype. When a low market cap coin gets hyped (ie. many online users talking about it), it can spur on higher levels of volatility...
There is a massive amount of arbitrage potential that can be exploited between decentralized and centralized exchanges. A quick example of this would be exploiting the difference between the exchange rate on a defi platform such as Pancakeswap and a centralized exchange such as FTX. If the rate...
Take a look at the example below for an actual triangular arbitrage possibility that has recently been observed. BTC to the Canadian Dollar on Kraken (If you are Canadian then you can take advantage of the lower price) BTC to the Australian Dollar on Kraken (If...
Triangular arbitrage is a type of arbitrage in which there is a mispricing between three assets. Tri arb involves exchanging a currency for a second currency, then exchanging the second currency for a third currency, and then exchanging the third currency for the initial currency. There is a...
HXRO does not give you the odds of betting up/down until the candle opens and no more betting can commence at that point. You can see from the picture below that many traders have been betting on the market rising, which increased the payout for traders who bet on...
Binary options and other forms of betting on markets allows for an enormous amount of potential. Trading binary options by themselves get a bad rap typically because trading incredibly short-term options by themselves can be a recipe for ruin in a matter of minutes due to traders overbetting...
The reason why it’s important to wait for a 0.25% difference between the spot market and the basket value is because the creation/redemption fee is 0.1% and your trading fee is likely around 0.025% to 0.1%, therefore your total roundtrip fee may be around 0.2%. With possible creation/redemption slippage,...
The single best way to perform this type of arbitrage is through taking advantage of large bid/offer walls. Taking advantage of this at times has made me thousands of dollars in less than a minute, risk-free. Take a look at an example of this below. The orderbook above...
Fill in this equation in order to chart the token properly: (FTX:ETHBULLUSD-(x*FTX:ETHPERP+y))/FTX:ETHBULLUSD*100 X = perp basket value Y = USD basket value Replace ETHBULLUSD with the leveraged token that you are analyzing. Perp basket value will be positive for bullish tokens and negative for bearish tokens....
Using Tradingview (requires Tradingview premium) on a 15s chart, I set up a chart wherein I can always identify an immediate arbitrage opportunity. This chart is simply the basket value of ETHBULL on the bottom chart (the equation is in the next section) and the spot price of ETHBULL...
This is the type of arbitrage you should pay close attention to, and it is how I personally made the majority of my arbitrage profit this past year. Leveraged token arbitrage is a type of arbitrage in which the value of one financial instrument/asset is out of sync with...
If you are looking for various exchanges in which you can use arbitrage, use this site here. Coinarbitragebot immediately displays where you can deposit/withdraw from in order to make the highest profit. At the time of this writing, buying BTC on the VCC exchange can give you a rate...
Play your geographical advantage. If you have documentation and a Turkish bank account, look at the difference in prices of Turkish exchanges to other exchanges. If you were born in Korea, look at Korean exchanges and compare their prices to other exchanges. For information on various cryptocurrency exchanges, go...
Geographical arbitrage is the same as inter-exchange arbitrage, where the only difference is due to exchange and instrument access that some traders get based solely on where they live or were born. This can be a phenomenal way to profit with relative ease (as long as the exchange you...
Beyond the risks detailed previously, there still is a wealth of potential profit scenarios that can come with this strategy due to new coins and exchanges being introduced, due to volatility, and due to large order book walls. First, if there is a new cryptocurrency that is beginning to...
Inter-exchange arbitrage occurs when there is a mispricing of the same asset across various exchanges and the savvy trader can realize a profit via various methods. Example below. Exchange 1 has ETH/BTC trading at 0.05 Exchange 2 has ETH/BTC trading at 0.055 STEPS Buy ETH via exchange...
Now, before we talk about the various ways in which you can make money from arbitrage, you first need to learn how to gain an eye for arbitrage potential — as there are many forms of arbitrage that are not covered in this guide. Below is a list of...
Arbitrage: The buying and selling of assets in different markets or in derivative forms in order to take advantage of differing prices of the same asset. Efficient Market: A market in which all individual assets in various forms trade at the same rate. Inefficient Market: A market...
No matter the asset class, trading profitably is notoriously difficult. From fees to groupthink to emotions, it can be hard for many traders to even find their proper footing. I’ve traded for 5 years, and I have been constantly searching for the holy grail of the markets. I have...
Spot Margin Video: Click Here! Password for the video above is spot123 After you read all sections below, then click this second video where the password is screen1 Although the videos feature FTX, you can use this same system on Binance and other exchanges. Binance has spot margining...
The two questions that commonly cross an options trader’s mind are: Has my analysis led me to be bullish or bearish on the current underlying market? If I enter into an options trade, should I hold until expiration or exit early? Every trader has a different opinion on...
‘Liquidity’ is simply a measure of the ease at which you can enter or exit a position at a fair market price. There are three simple metrics that you should analyze when measuring how liquid an option contract is. It is typically best to completely avoid illiquid option contracts....
On FTX, we also have the possibility of taking perpetual-spot spread trades. These trades can still be delta neutral, however, the relationship between funding and spread is quite different than it is with perp/futures trades. Trading coins at spot is a non-leveraged strategy in which you can purchase cryptocurrencies...
In any endeavor in life, success and failure are almost always determined from a mix of luck/chance with the decisions you make. Basically, you can’t control the way the wind blows but you can adjust your sails. What’s potentially even more important is how you are able to handle...
The use case for option contracts is incredibly diverse. When choosing between trading instruments such as options, spot trading, and futures trading you must consider a multitude of factors. Maximum Risk With long options trading, your max loss is solely the premium that you pay in order to receive...
Some options traders prefer to solely focus on trading volatility and trading bidirectionally via the use of options. Instead of choosing whether to have long or short exposure to an underlying asset, trading volatility through various means can *at times* be the superior method of trading. The simplest way...
Dominant Strategy Password for the video is DOM321 In options trading, there is no one dominant strategy. There is no one strategy that will always create a profit. For example, buying a close to expiration long straddle can do poorly if there is a sudden prolonged lack of volatility...
A Long MOVE contract is just the exact opposite of a short MOVE contract position and is akin to a long straddle option position. Additionally, the benefit of a long MOVE contract is that your loss is limited to only your position size. You can not be liquidated on...
MOVE contracts represent the absolute value of the amount that an underlying asset moves in a given period of time. If a daily BTC move contract moves and expires 1000 USD higher than its strike price than the MOVE contract expires to a price of 1000 USD. Essentially, a...
