Scalper: Choose your Specialty

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 the type of scalper that uses price structure pattern recognition (bart patterns, stop loss targeting etc.) in order to execute trades in the short-term
  • Recognizes a pattern and then aggressively commits the majority of your trading capital to seeing the pattern play out 

      

Action Steps

  1. Start your spot capital with 50% BTC and 50% USD and wait for a price pattern to emerge
  2. If the pattern is bearish, put 80-100% of your capital in USD and set bids at prices that make sense (recall the stop loss pattern section AND the trapped traders section)
  3. If the pattern is bullish, put 80-100% of your capital in BTC and set offers at prices that make sense (recall the stop loss pattern section AND the trapped traders section)

 

 

       2. The Behavioral Economist 

  • Be the type of scalper who makes trading decisions purely based upon market sentiment (twitter sentiment analysis, gauging market mood etc.)
  • When trading like this, don’t forget to be flexible in your order setting by setting out limit orders farther out than what you believe that the market will likely reach 

 

Action Steps

  1. Start your spot capital with 50% BTC and 50% USD and wait until you notice a polarizing shift in market sentiment (ie. wait until everyone is either bullish or bearish)
  2. If the pattern is bearish, put 80-90% of your capital in USD and set bids at prices that you believe traders will panic sell at
  3. If the pattern is bullish, put 80-90% of your capital in BTC and set offers at prices that you believe traders will panic buy at

 

       3. The Aggressive Passive Income Scalper

  • Be the type of scalper who uses both price patterns and sentiment patterns to make trades and then lend the extra profits that come from your trades
  • This strategy is executed by keeping your spot capital at the same amount but using excess profits to earn income passively

 

Action Steps

  1. Start your spot capital with 50% BTC and 50% USD and wait until you notice a polarizing shift in market sentiment (ie. wait until everyone is either bullish or bearish)
  2. If the pattern is bearish, put 90-100% of your capital in USD and set bids at prices that you believe traders will panic sell at
  3. If the pattern is bullish, put 90-100% of your capital in BTC and set offers at prices that you believe traders will panic buy at
  4. If your bids fill and you have successfully increased your BTC stack, lend your excess BTC (extra BTC you made from your trades) on Gemini Earn or on a different lending platform
  5. If your offers fill and you have successfully increased your USD stack, lend your excess USD (extra USD you made from your trades) on Gemini Earn or on a different lending platform

 

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