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In this lecture, I would like to explain a little bit about the wallets and the exchanges so you will know how you can store your cryptocurrency and which is the safest way. We use the exchanges to buy cryptocurrencies with our debit card, credit card, wire transfer, or to exchange one cryptocurrency for another, to sell a cryptocurrency for fiat currency, or this is for USD, EUR, GBP.
How to store cryptocurrency online
But the exchanges are not the safest place where you can store your cryptocurrencies. You better use wallets to safely store your cryptocurrencies.
And there are 2 types of wallets.
One is the custodial wallet which is known to be less secure because you don’t have full control of your cryptocurrencies. Others are non-custodial wallets where you have bigger control of your wallet. Such a wallet, for example, is the Exodus Wallet, which is very friendly.
And I have done reviews on YouTube for most of the wallets I use but Exodus is one of the online wallets that I’ve been using and it’s non-custodial, meaning that I have control over my cryptocurrencies, I have my private key, and so on.
Exodus Crypto Wallet
And of course, the biggest exchanges like Coinbase have a wallet. So there is the Coinbase wallet, which I’ve been using as well without any issues. It’s very comfortable because the 2 connect easily and I can transfer cryptocurrencies from the wallet to the Coinbase exchange very easily without copy-pasting addresses and it works really nice.
Coinbase Wallet
And these wallets usually keep most of our cryptocurrencies offline.
And keep in mind that the different exchanges and wallets secure their funds and their customers in a different way. For example, most U.S.-based exchanges and wallets cover the funds of U.S. citizens up to $250,000. But for the non-U.S. citizens, they pull the cash and keep it in dedicated custodial accounts.
How it works for the non-U.S. citizens
And of course, with time, this will change. So by the time you are reading this lecture, probably the conditions will be different with most of the crypto exchanges.
How to safely store Bitcoin or another cryptocurrency offline
In 2021, one of the most secure and safest ways to store crypto offline is the Ledger wallet, which you can easily keep in your pocket. It’s a hardware crypto wallet. This is where I keep store safely most of my cryptocurrency. So being offline, I have full control of my cryptocurrencies.
The Ledger Wallet
Many people are using the Ledger nowadays but keep in mind that it’s a bit costly. We have conducted a detailed review of the Ledger hardware wallet here. Ledger also allows staking, but not for all of the cryptocurrencies. Just for a few of them for the moment. And if you decide to buy the Ledger, don’t forget to read our review first.
Safest way to store crypto
If you have difficulty choosing the safest way to store crypto, you can check our list of trusted brokers and exchanges. I have asked my team to make detailed reviews for the brokers, the exchanges, and wallets that we have been using. And we will add some more cryptocurrency exchanges and wallets with detailed reviews about each one.
The reviews on various exchanges and wallets
This way it will be easier for you to select how to store cryptocurrency. Especially if you are just starting out. So probably by the time you are reading the lecture, more exchanges and more wallets will be on that list. You can use them as a resource for trusted exchanges and wallets that I personally test before we put them on the list.
But of course, before selecting how to store cryptocurrency, you need to make your own research for the safest way to store crypto. For example, on the Crypto.com website, there are 2 different ways that allow you to store cryptocurrency and earn passive income.
Crypto.com website
One is with the Earn option, which I’m demonstrating in the Crypto Staking course where we can receive up to 12% annual interest from crypto deposits.
And the other option is to do CRO staking. CRO coin is the Crypto.com cryptocurrency and it’s pretty much related to their Visa card options, which I’ve been using as well. But I don’t want to go into many details because I don’t want anyone to feel like I’m promoting this exchange. I just had to pick one of them to demonstrate the staking and the earning rewards.
Learn everything about the exchanges before choosing
So when you choose your exchange, make sure to learn all the different options they offer and all the conditions they have.
As I said, they are changing it all the time. For example, with Crypto.com, as I said, we have 2 options. One is to use the Crypto Earn option and the other one is to stake CRO tokens where you can order Visa card and earn cashback from Crypto.com partners.
And one more time, all of these conditions change. So, for example, when staking CRO, they have different cards, and depending on how much you stake, you will receive different benefits and so on.
But for the purpose of the course, I will start with the Earn option which is more suitable for beginners. And we can earn interest in many different cryptocurrencies, not just the CRO.
This way, I’ll be actually lending my cryptocurrencies to get rewards at the end of the period.
But one more time, guys, don’t take any of the cryptocurrency exchanges, wallets I show and mention in the lecture as a recommendation. I am not paid by any of the companies that I mention. The purpose of the lecture is educational. And I have selected to use Crypto.com for the purpose of the Crypto Staking course because it has a huge variety of cryptocurrencies to choose from for staking.
Today I will talk about the most volatile Forex currency pairs. Now the most volatile currency pairs are not the most popular Forex pairs EURUSD, GBPUSD, USDJPY. These are the Forex currency pairs that are most traded, the most popular but exactly that makes them less volatile and I will explain to you why.
Which is the most traded currency pair?
So let’s start first from what are the Forex currency pairs and what is the volatility?
So if you are a beginner, probably you know already that there are different markets like the Forex market, the Cryptocurrency market, Stock market, there are futures, bonds, a lot of things to trade with.
The most popular is the Forex market with one of the biggest volumes daily over $5 trillion. Now EURUSD definitely is the most traded currency pair, it represents the economies of Europe and the United States.
It’s a lot of transactions, a lot of European companies are working in the States, a lot of U.S. companies are working in Europe. They exchange, they send profits, they convert their income into the national currencies. And it’s a lot of trading volume for the EURUSD. But exactly because many people are buying and selling it, like 20% of the Forex market goes to EURUSD, that makes it not that volatile.
What is volatility?
Let me put that simply, imagine you are in the vegetable market. A lot of people selling potatoes, cucumbers, mushrooms, apples, but there are just a few out there that are selling pineapple, for example. So they can actually increase and decrease the price because it’s a few of them. The others that are selling the most common fruits and vegetables go to average price and they cannot fluctuate a lot with the price.
Same thing on the market, when a lot of people are trading the EURUSD, a lot of transactions, a lot of EUR exchange for USD, and vice versa. Then the price fluctuates less and that is the volatility. The more the price fluctuates up and down, the more volatile is the asset. And these are usually exotic currency pairs or these are commodity currency pairs.
What is a currency pair?
And before I tell you which are the most volatile currency pairs, I would like to explain what is the currency pair for beginner traders. So if we have EURUSD, if it rises, it means EUR rises. This is very important to note before you start any trading. If EURUSD falls, then what that means, the USD is stronger. However, if EUR is not moving, not strong, not weak, neutral, it depends on what happens with the USD, if the USD is weak at that moment, EURUSD will go up.
If the USD is strong at that moment, then EURUSD will go down. So it’s about the 2 of them, which one is stronger than the other one at the current moment. And that’s what drives the price up and down.
The most volatile currency pairs
USDKRW and USDBRL
The first I will share are quite interesting. This is the USD versus the KRW (South Korean won). And the second one is the USD versus the BRL (Brazilian real). So these 2 are quite popular among the aggressive investors, I can say, and traders because the huge volatility in these currency pairs usually makes easier profits.
But at the same time, it could bring you easier losses. So be careful trading these not popular, I can say, but most volatile currency pairs.
AUDJPY and NZDJPY
The second most volatile Forex pairs are the AUDJPY and the NZDJPY because these are economies highly connected to their exports. And, for example, AUDJPY, Aussie stands for AUD. So AUDJPY means AUD versus the JPY and the JPY is considered to be one of the least volatile currency pairs.
Which means that it doesn’t move that much. Actually, the investors consider the JPY as a safe haven currency. This means that when there is some uncertainty on the market, they put a lot of their investments into JPY as a stable currency. So they are not risking with a lot of fluctuations. At the same time, Aussie or the AUD depends a lot on the export that Australia does. So when the price of the exported goods changes, that easily makes the AUDJPY one of the most volatile currency pairs.
Canada-Japan oil relationship
Same thing with the NZD which is known as Kiwi. So when you say Kiwi to Yen means that is the NZD versus JPY. And actually, it’s known to be Kiwi not because of the fruit. But because they have a bird called Kiwi and it’s kind of a national mark for New Zealand. So when the prices of dairy goods, or eggs, or meat, wood, they export a lot of these products. When the prices change, this makes the NZDUSD very volatile and especially against the JPY which is a stable currency.
So when the NZD or the Aussie move up and down and JPY is stable, that makes the 2 currency pairs, the AUDJPY and the NZDJPY or the Kiwi Yen very volatile.
EURGBP and the CADJPY
The next most volatile currency pairs are the EURGBP and the CADJPY. So EURGBP used to be not that volatile but since the vote of Brexit in 2016, and it actually happened now in 2021, what happened is the UK is separated from Europe. Then the EURGBP started to move a lot and became one of the most volatile currency pairs.
However, with some brokers, you can find it as EURGBP. With some, you can find it as GBPEUR but it’s the same thing. So the whole Brexit thing made EURGBP one of the volatile currency pairs that I really like to trade most.
CADJPY
The next one is CADJPY which means CAD versus the JPY. Now as you probably know, Canada exports a lot of oil. This makes the CAD as a currency closely related to the price of oil. And because Japan imports a lot of oil from Canada, they obviously need to buy more CAD with their JPY.
And that makes the CADJPY a very volatile Forex currency pair, related the most of course, to the price of the oil. So when there are some fluctuations with the oil, the CADJPY moves as well very nicely. And we can easily trade it because we usually know what is going on with the oil from the economic news, we know when are the epic meetings, where there are important speeches. And it’s a little bit easier to trade the CAD which is related to the price of oil compared to the export of dairy products from New Zealand, for example.
GBPAUD
The next most volatile Forex pair is the GBPAUD. So as we said, Aussie or the AUD is very related to the exports that Australia does. However, before the U.S-China trade war, Australia had a very strong partner in the face of China. But after the trade war, that changed and the value of exported goods from Australia fell which made the GBPAUD a very fluctuate currency pair as well.
USDZAR
USDZAR or this is the USD versus the ZAR (South African Rand). A very volatile currency pair that had a fantastic uptrend for a long time and it was super easy to trade. And a lot of the investors did a lot of profits from trading the USDZAR. Now, why is this currency pair so volatile? The South African export mainly is gold and as you know, the gold is the back up for all currency pairs and especially for the USD. That’s why the price of gold is usually related to the USD.So when the price of gold rises, more rands are needed to purchase USD.
Number 9, USD versus the TRY
The TRY has lost a lot of its value in the last decade because of political events, elections, trade war with the United States. And the lira was one of the best profits I could have ever taken. And together with the RUB, actually, when these 2 collapsed it was super easy to make some quick profits. But that’s not long-term trading. I’m talking about when something happens in the market, we want to take advantage of it and we do it. Basically, this is how I use personally the most volatile Forex pairs.
USD versus the MXN
And number 10 for the most volatile Forex pairs goes to USD versus the MXN. As you know, since Trump became the president, there was kind of a rocky relationship between the States and Mexico which made USDMXN to be a very volatile currency pair. So these are the 10 very volatile currency pairs.
But, one more time, this doesn’t mean that these are the very popular currency pairs we trade. As I said, personally I trade the most EURGBP. And with all the rest, I just take advantage when there is something extraordinary in the market when any of them collapses, crashes, something extreme happens and it moves like a thousand pips, then I would be happy to be participating and to take some quick profits. But that happens honestly rarely.
Conclusion
So this was about the most volatile Forex pairs. If you have any questions drop them in the comments below. Of course, probably by the time you’re reading this article, some others could be the most volatile Forex currency pairs. Because it depends a lot on what’s going on in the market. The exports, prices.
And it’s all about you if you want to be a more risky trader or you would prefer to trade the most popular Forex pairs like EURUSD, GBPUSD, USDJPY, and stay away from the volatile currency pairs.
Thanks for reading. And if you have any questions let me know.
Bitcoin price target 2021 – is $146 000 a BTC target or just the beginning
Today I’ll be talking about the Bitcoin price in 2021 and why $146,000 is an important level for Bitcoin. After Bitcoin broke $20,000, it’s been a lot of speculations over the internet. Different posts and predictions where people writing that the Bitcoin price will reach $250,000, others say it will reach half a million. More aggressive predictions go up to $1 million. The truth is nobody knows what will happen. And I can tell you what are the realistic targets that I’m looking at and where I see the price of Bitcoin in 2021.
Now, first of all, I’d like to say that it’s a huge difference between 2017 and 2020, 2021. Why? Because in 2017, the mass of people was driving the price upwards. Everybody was crazy, everybody was talking about Bitcoin.
I was walking on the streets, in the mall, and I heard people at the age of 60-70, or even older speak about Bitcoin in Bulgaria which was really kind of money at this moment.
The major players can affect the Bitcoin price
Now, the difference in 2020, especially in the last quarter of 2020, is that the huge investors and institutional investors started purchasing Bitcoins which pushed the price aggressively.
There were many signs in 2020 showing that the price of Bitcoin will break the $20,000. This was PayPal announcing that they will implement cryptocurrency. For the moment, it is only for U.S citizens. I wish I was in the U.S because of that. Second, some insurance companies in the United States bought cryptocurrencies, and especially Bitcoin.
And that was something unusual until the moment. And many institutional investors announced that they want to keep the value of their funds and their investments by holding Bitcoin. I personally think that they still want to gain quick profits and many of them did. Because buying Bitcoin below $20,000 and after price reached $40,000, it’s a profit of over 100%, which is quite unusual for the huge institutional investors.
However, you need to keep in mind that the price needs to reduce or to lower the fluctuations. Because of what had happened, it reached $40,000, then it dropped to $30,000, then it reached $40,000 again. Investors are not that likely to invest in an asset that will lose and profit that much every other day. They don’t want their funds to be at the risk of losing 20% in one day, which actually happened with Bitcoin after it broke the $40,000.
Bitcoin is compared with Gold
Now, I know there are a lot of speculations about where the price will go. I never do predictions because, one more time, nobody knows where the Bitcoin price will be at the end of 2021. And as I recently said in one of my videos, you don’t know a video or someone who predicted before 2017 that the price will reach $20,000, it will drop to $3,000 or something.
Then it will reach $14,000, then because of the Coronavirus in 2020, it will drop again to $3,000. Nobody has predicted that and that’s why I don’t suggest you believe any Bitcoin price predictions.
Even J.P Morgan made a very serious prediction for the Bitcoin price to reach $146,000 and I will explain why they did it. They compare it with the gold. So as you know the gold so far is accepted as an alternative currency and now a lot of people say that gold is threatened by Bitcoin.
If you want to learn how to trade gold with Expert Advisors, take a look at this course.
But what’s the reality, how did they calculate it? I have the post right over here from CNBC. So J.P Morgan made a very long-term target for Bitcoin price saying that it will reach $146,000 as a target. But they said that would be a hard target, exactly because the institutional traders don’t want to see huge volatility with the price. It says its price volatility would need to drop substantially, just what I’ve said earlier in this article.
It is a strong resistance line
And they calculated that Bitcoin price of $146,000 because they multiply the coins in circulation. Currently, it stands at over $575 billion. And currently, the gold investments in the private sector are somewhere above $2.7 trillion. Which means that if the price of Bitcoin reaches $146,000, basically, it will reach the value of all the gold investments.
But here is the thing I don’t agree with what J.P Morgan said, they said that this is a target for Bitcoin. What I personally think is, if that happens, if the price of the Bitcoin reaches $146,000 and it reaches the gold as a global value, I think then the price will just go to the $200,000-$250,000 like nothing. Imagine that gold has been the alternative currency for decades and now we have a virtual currency in the face of Bitcoin which will have over the $2.7 trillion of investment for the gold.
What will happen? The investors will jump more into Bitcoin, they will sell the gold to get more Bitcoin. So I don’t think the $146,000 is a target, I think it will be just a really strong resistance line and if the Bitcoin price breaks, it will just go much further. That’s what I think. I don’t say it will happen but it’s not just a target for Bitcoin. I think it’s a strong resistance line if we compare it to the gold.
The Fibonacci targets
So I don’t want to compare Bitcoin and gold. A lot of YouTubers do that, but I personally think that having Bitcoin or any other cryptocurrencies in your portfolio will bring you a great risk diversification and you can gain some quick profits, just what I show in many of my free videos on YouTube.
So that’s why J.P Morgan said that the $146,000 is an important level. There is no other resistance, support, or any levels we have out there.
In my Bitcoin Investment Strategy course, I use the Fibonacci targets which are great targets for Bitcoin and I sell always when the price reaches any of the targets. But we don’t have any levels out there because the price has never been into these levels. That’s why J.P Morgan pointed out the $146,000 but, one more time, this is because if the price reaches there then it will reach the total value of the gold investments that we have in the private sector.
So we’ll see if that will happen, we’ll see what will happen if the Bitcoin price breaks that level. And I don’t want to go to any predictions if this will happen this year, next year, in this decade, maybe it will never happen. We don’t know. But if that happens, I’ll be quite happy of course because my crypto portfolio will grow. And I’m sure that many of you reading this article right now are interested in this because you already have Bitcoin in your portfolio.
Conclusion
So be patient. And who knows what will happen in a few years? Maybe Bitcoin will be already so applicable to everything. I hope that we can buy and purchase stuff anywhere with cryptos, so we won’t need to convert them into fiat currencies. And personally, I feel this is quite possible to happen as sooner as we expect because all the governments now are printing money so easily that they rise inflation really quickly.
Which makes Bitcoin a desirable asset, not just for the investors but for the retail traders and investors like me who want to keep value and not to lose savings because of the huge inflation happening especially after the Coronavirus crisis. That’s how I see the price of $146,000 as I’ve explained. Not a target, I think it’s a resistance. But we’ll see what happens.
If you have found this article useful, I will appreciate it if you leave a comment below. I will see you in the next lecture.
Instead of just keeping your cryptocurrencies in the wallets, you can earn rewards by staking these crypto coins. That’s right. After 2020, most of the crypto exchanges and wallets offer cryptocurrency staking. This is a super easy method to earn passive income from your cryptocurrencies. And this is what I show in our newest course about crypto staking.
Cryptocurrency staking is actually already quite popular, but there isn’t much educational content about it available. So I have decided to create this course so that everyone interested can learn how to do it with confidence. And I will demonstrate it step by step.
I have opened an account on one of the exchanges I use. I bought 3 different cryptocurrencies with a total current value above $5,000 just for this course to show you the whole process step by step.
By me saying the whole process, don’t think it is something complicated. It is a matter of just a few clicks and you do not need to have any experience in blockchain or anything related to cryptos. It really is very easy.
So let’s say you have $10,000 saved in your bank account, but instead of keeping it there, you can put that money to work and get up to 12% or even more on some of the exchanges per year. This is $1,200 without doing anything. Of course, if you have more then you could earn more. And if you have less, don’t worry, you will still earn over time because the amount will be compounding every month.
Staking demonstration
In the course, I explain what crypto staking is so you will know what you are doing. I will share with you which companies allow it and which ones I prefer to use. I will also teach you which are the safest wallets you can use to store your cryptocurrencies. And how I personally diversify the risk by keeping my crypto in different places.
Additionally, I will talk about money management and how much one should put into cryptos. Because I know many beginners that want to start investing in cryptos, are unsure which is the best asset to buy or worry that it’s too late. They wonder how much money they should invest and how long they should hold onto the asset.
I will try to answer all these questions. But what I will focus on is crypto staking because it allows you to earn extra passive income regardless of what the price of Bitcoin is or where the market goes.
I will demonstrate how to do the crypto staking right from my phone, sharing the screen of the phone with you.So if you decide to do it, you will know exactly what you need to do. I will share different strategies for crypto staking with you, which you can apply to your personal investment strategy. And it’s really great when you put your money to work for you because this way, you won’t lose the buying power of your money due to inflation. And the Crypto staking nowadays allows us to earn a respectable passive income.
What is crypto staking?
Let’s get straight to the point, what is crypto staking?
I will try to explain in simple words. Staking crypto is the process in which you will help or support the security and operations on the blockchain network and you get rewarded for that. If this still sounds complicated, we can say that staking is like locking cryptocurrencies to receive rewards.
So instead of just keeping your cryptocurrencies on the exchanges or on the wallets, you can stake them and you will earn a reward which is not bad at all.
And since 2020, and now in 2021, most of the popular cryptocurrency exchanges and wallets offer their clients to stake crypto. So these are platforms like Binance, Coinbase, Kucoin, Kraken, Poloniex, and etc.
The platform that I will use to demonstrate crypto staking in the course will be Crypto.com. And I don’t want to go into details what are the different crypto staking rewards in the different exchanges. Because they change them all the time. And if I tell you now the best conditions are on Binance, for example, next month it could be somewhere else.
When you decide if you should go for crypto staking, spend some time comparing several different crypto exchanges and crypto wallets to see which one will suit you best. And there are really many platforms and companies where you can earn interest as a reward from staking your cryptocurrencies.
The interest rates when staking crypto
So the ones that I have mentioned and most of the others work very similarly to how the banks work. So usually what happens with the banks is they get deposits and on the other side, they lend money to people who take credits.
And they get higher interest rates from the people that take loans. And give lower interest rates to the people that have deposits. So, for example, if I have a deposit in the bank, I would get, nowadays, about 1-2% maximum depending on the bank and the currency. But if I have a credit, I would be paying much more. 6-7, depends on what the interest rates are at the moment. So the exchanges and the wallets nowadays lend cryptocurrencies to the people that don’t have cryptocurrencies.
And, for example, I have cryptocurrencies, and I can lock them into my account so the exchange can lend them to other traders. And I get an interest rate out of that, the exchange gives me the majority of the interest rate and holds a portion from which they profit. The second way the exchanges and the crypto wallets work is they actually do staking on the blockchain using our cryptocurrencies. And of course, third, they can buy assets, invest in real estate just like the banks. Or they invest in stocks, it’s their business.
The thing is, when you choose your cryptocurrency exchange or wallet, you need to trust the company. Because they will be using your cryptocurrencies and you will be expecting them to pay rewards to you for that.
If you invest in something, you have to believe that you will profit out of it
And I know that many people are quite skeptical about cryptocurrencies. About staking, they start with, “Oh, my account will get hacked, I will lose the money, the price will go to zero“. Now, if you start with that thinking, you better not invest in cryptocurrencies.
Because if you invest in something, you have to believe that you will profit out of it. Or when we are talking about crypto staking, you need to prepare your mind that you will be having passive income from your cryptocurrencies no matter where the price is. Is it going up or is it going down? At the end of the period, you will have a passive income coming into your account.
Crypto coins Proof of Stake (PoS)
Now, I will buy some crypto coins from an exchange, I will put them in a hardware wallet and I will show you how easy it is to stake a pure Proof of Stake token.
Proof of Stake (PoS) is a mechanism used by the cryptocurrency blockchain to allow a person to mine or validate blockchain transactions depending on how many crypto coins he has. This means that the more Bitcoin or altcoin you own, the more mining power you have.
And before I show you the actual crypto staking, be sure to check our free lectures about the best crypto wallets and the top cryptocurrency exchanges to see what I use and found to be the safest. I’ll also look at the difference when you hold cryptocurrency on the exchange, on the wallet, and when you are actually staking them.
Staking crypto coins in a hardware wallet
Actually, by the time I’m writing this lecture, Algo is the easiest crypto for staking because all you need to do is to have it. And you will be getting crypto staking rewards.
Algo is the cryptocurrency of the blockchain called Algorand. The mission of this blockchain is to create an economy that is accessible for everyone with a digital currency that works fast and instantly. Like the fiat currencies but with the difference that it is digital. Algo or Algorand counts as a solution to 3 main problems of the blockchains today – decentralization, scalability, and security. The security in the Algo consensus algorithm is based on the honesty of the majority. The protocol is secured if 2/3 of the majority are honest.
And let’s get to the point, how Algo staking works? You just need to have Algo in your crypto wallet and you will be receiving staking rewards. There is no action you need to take to stake Algo, no need to delegate it to someone like with Tezos, for example.
However, with Algo, you do not need to lock the crypto for a certain period. You just need to have Algo coins and you are already staking crypto. Even if you have 1 Algo token, which at the moment is around $1.25, you will be able to claim crypto staking rewards. And in the next lines, I will show you the whole process, step-by-step, using the Ledger Nano X hardware crypto wallet.
Purchase the crypto coins
And the first thing I will do is to buy some crypto coins. So I will open my Crypto.com mobile app and I will go to Track. There you can find all the assets that the Crypto.com exchange offers. I will scroll down and I will go to Algo.
You can see that at the moment, it sits at the price of $1.27. And actually, it did a nice break just a few hours ago. And this is one of the reasons I decided to writhe the article right now. So it broke an aggressive counter-trendline, which is my strategy for investing in the cryptocurrency market.
Algo coin price broke an aggressive counter-trendline
And at the same time, Bitcoin broke an aggressive counter-trendline, which is the signal for me when I want to buy cryptocurrencies.
Bitcoin broke an aggressive counter-trendline
And Algo reached $1.70 in February 2021, which makes me feel comfortable buying it at $1.27, $1.28. So let me buy so I will not miss the price and I will be buying 350 of Algo, which will cost me about $447 at the current moment. I will tap on Buy and I will buy with my card right now, as I want to do it instantly while I’m writing this article. This is why I will pay a 2.99% fee. Usually, I use wire transfers because this way I pay less in fees.
It takes a little while for the purchase to be confirmed and completed. And once it is completed, I will have 350 Algo coins in the Crypto.com app. If I go to Accounts, and let me see what I have in my crypto wallet, I have Crypto.com CRO coins, I have Cardano, and I have the Algorand.
And I tap on Algo, I can see details on the transaction below – at what price I have bought it, what is the fee, and what is my total cost.
And before I send the crypto to my Ledger hardware wallet, I want to show you how much you can earn from the Crypto.com app for comparison. So if I go to the Earn section in the Crypto.com app, I will see the crypto assets that I’m already staking. Bitcoin, Ethereum, CRO coin, and etc. I have total earnings of $16 since I started staking my crypto coins. And then if I go to Algo, you will see that on the 1 and 3-month term, I will earn respectively 1 and 2% annually, which is pretty low crypto staking reward. That’s why I prefer to stake my crypto on my Ledger wallet.
Install the Algo app on Ledger wallet
So the next thing I will do is to open the Ledger Live app on my phone and install the Algo app. My last transaction is the one where I showed how to stake Tezos coins on Ledger. And now I will go to Accounts and I will click on the plus button in the upper right corner, and I will tap on Add account, and then I will select Algo.
Algo app is ready, and the Ledger Live requests to “Allow Ledger Manager on your device”. Then in the app catalog, I will look for Algo again. And I will tap on Install, which will start the installation of the Algo app.
So for the people who have never used Ledger, this is a crypto wallet that is known to be one of the most secure since it is offline. It’s a hardware wallet. It’s not connected to the Internet. When I’m transferring cryptocurrencies, sending or receiving, all I need to do is to connect the Ledger with the Ledger Live app on my phone so I can do the transaction.
All the cryptocurrencies are stored in different accounts
The Algo app is already installed but if I go back to the accounts, I don’t see Algo. I will tap on the plus button and I will tap on Add account. Here I will search now for Algo and open the app of the Algorand one more time. And it says the application is ready. I will click on Continue and it says, “Accounts added successfully”. Now I have the Algorand in my accounts.
All the cryptocurrencies stored in the Ledger Live app are in different accounts. And each of the cryptocurrencies is called to be an app. First, you need to install it, and then you need to add the account.
Now I will go to Accounts. And if I scroll down, you will see on the bottom it says, Algorand 1, and I will tap on Receive and I will connect the Ledger Live with the Ledger hardware wallet again. I see the address on my Ledger Live app and on my wallet. And I just need to compare it. Usually, it’s enough to compare the first couple of letters or symbols and the last couple of letters and symbols.
And once I confirm that this is the address, I will just copy it and I will go back to Crypto.com app. And then I will go to my Algorand balance and I see that the price is already above $1.28. Hopefully, it will rise.
Withdraw crypto to Ledger wallet
Actually, they launched Algo on Coinbase Pro recently, so I guess this will help the price to gain some value. But what I will do right now, I will transfer the Algo coins to my Ledger wallet. I will tap on Withdraw because I will be sending it to external wallets. I will tap on that, Add wallet address. And right here, I will just paste the address from the Ledger wallet. It says Wallet Name, I can just call it Ledger X, for example. Pretty much that’s it. I will tap on Continue and it says, “Check your email to confirm your new wallet address.”.
And I need now to open my email where I have the confirmation from Crypto.com, I have the confirmation from my bank, and I have the withdrawal registration confirmation. And I need to confirm one more time the withdrawal address. So I tap on Confirm and it brings me back to Crypto.com. And you can see that the Ledger X address is already on the list. If I tap on Algo, and I have the option here to withdraw the amount, or I can select Max (350 Algo), and I will just tap on Withdraw. And that’s it.
You don’t need to do anything
The fee is 1 Algo and totally I will be transferring 350, so I’ll be sending 349 Algo. And I will tap on Confirm and it will take just a second. Tap anywhere to continue. So now the Algo will be gone out of my balance in Crypto.com app.
Let’s go back now to the Ledger Live app and see if we will have the Algo there immediately, usually should be almost immediately in there. I see that I have received 349 Algo.
So now if I go to Accounts and I scroll to the bottom, I will see the Algorand. I will tap on that. And if I scroll below, you will see that I don’t have any crypto staking rewards and I cannot claim rewards. But it will take a very short time. Probably by the end of this article, the crypto staking rewards will be there and I will just refresh the page a few times.
So that’s it, guys. I don’t need to do anything. I don’t need to delegate it as I did with Tezos. So I don’t need to send delegation rights to any Baker or something like that. This is for the Tezos. For the Algo, all you need to do is to have Algo in your Ledger wallet. And from there you do nothing. Actually, I already have a reward of 0.00349 of Algo.
Claiming the crypto staking rewards
And I can claim it, but it’s already added to my account. So if I tap on Claim, it says, “Congratulations, you earned 0.00349 Algo. Continue to claim your rewards.”. But below, it says, “The rewards are smaller than the estimated fees to claim them.”. Whenever I have some more crypto staking rewards, I can claim them and they will be added to my account. But now, actually, they are added to my account.
I just need to claim them but because there is some fee, I will wait. And keep in mind that approximately every 20 minutes you will receive crypto staking rewards. So staking Algo coins in Ledger is that simple. You just need to have the coins in your wallet. And you saw that I didn’t do anything, and it started adding rewards to my account. Obviously, the more coins you have, the more crypto staking rewards you will get.
By the time I’m writing this lecture, the rewards are approximately about 6% annually. This is much better compared to the 2% that I showed to you in the Crypto.com app. So it is up to you where you want to stake your crypto coins, where you feel comfortable keeping your assets, your Algo in this case.
But the best thing and the thing I like the most with the Algo coin, and that’s why I wanted to have it in my portfolio, is the fact that it is a pure Proof of Stake. You don’t need to delegate it. You don’t need to lock it for months. It’s just that simple to do it.
Conclusion
Thank you very much for reading this lecture. I hope you have understood how you can buy cryptocurrencies, send them to a crypto wallet, and then start receiving rewards from staking them. And the easiest way for the moment is Algo indeed when we are talking about the type of cryptocurrencies.
But always make sure to check out the different crypto exchanges, the different wallets, what percentages they offer for rewards. For me personally, anything above 4-5% annually is good enough to have my cryptocurrency staking. And I prefer Algo in this case because I’m not locking it, just what I showed already in Crypto.com. But all I need to do is just to keep it in my wallet.
And as you saw, for example, with the Bitcoin and Ethereum, I had to lock it in the Earn section on Crypto.com. But because Bitcoin and Ethereum are Proof of Work and not Proof of Stake coins, I cannot stake them on the Ledger or on the other wallets. So I use the Earn option on Crypto.com. Thank you for reading and I will see you in the next lecture.
Hello everyone, what I’m going to talk about today is what it is to be a professional trader and how to become one. I will share with you what it took me to become a professional trader and then as well, I will give you some tips that you need to keep in mind before you start trading.
I know a lot of people are just wondering at the moment, should they start with Forex trading? Is it real at all, the Forex market? Is it possible for me to make money on the Forex market or not? How professional traders trade Forex? And that’s OK, I mean you should always be very careful about what you start with. Especially when you start reading different forums, reviews, comments.
What is a professional trader?
You will see that a lot of people are losing money. So what happens usually is that beginners start to wonder, if trading is a real thing? Should I waste my time and my money to do it? Or should I go for my daily job where I know I will have a constant income monthly? I absolutely understand that. That’s why I wanted to give you a few tips and ideas on what you can expect and what you need to be careful of if you’re interested in becoming a professional trader.
So first of all, let’s make it clear what it is to be a professional trader. Now personally, I consider myself to be a professional trader for 5 years now. Although, I’ve been on the Forex market since 2009. This is how long I’ve been trading. But I’ll be honest with you, I started trading long ago before I became a professional trader.
So to be a professional trader means that you make your living with trading. This is what a professional footballer is, this is what a professional video editor is. When you make your living from the thing, then you’re a professional. That’s like the general explanation I can give you.
So at the moment, when you don’t need to work a full-time job or you don’t need to do any projects or anything else and you do just trading, and that’s enough for you to cover your expenses, to have a good life and to give everything to your family that it needs, then you can say, OK, now I’m a professional trader.
Find capital to trade
As I said, I consider myself to be a professional trader just in the last 5 years. Before that, honestly, it was very difficult for me to get to this point, where I didn’t need to work for any company just because I didn’t have capital. And that’s the number one thing that you need when you start trading, you need to have capital.
Even if you’re good, even if you learn a lot of good strategies, even if you use trading robots like me, but you don’t have capital, it’s really hard. And you should know realistically how much you can make on the Forex market.
Avoid scammers who pretend to be professional traders
There are a lot of scam reviews, scam YouTube videos, people showing unrealistic results. They just want to bring you to something, for example, to a certain broker or they want to take your money. Or it is a video from the broker where they will just promise unrealistic results. So anything that is between 10, 20 maximum to 50% a month is a realistic result. As well, anything between 50-100% a year is still realistic.
Anything that will make you rich in a few weeks, a few months, you will win millions of dollars investing just $100, all of that is crap. All of that is a scam. So if something sounds too good to be true, then it means it’s not true. This is especially how the Forex market works.
There are a lot of scam companies and scam brokers that will promise unrealistic things. So I said number 1 is to have capital.
Learn to trade by yourself
Don’t depend on anyone out there to manage your funds. Let no one do the trading instead of you. No matter what they show you guys, no matter what they promised you, you don’t believe that.
The only person in the world who can do this for you is yourself. You need to learn to trade, you need to learn to do good money management. And you need to trust only yourself, not even me. Even if I really do my best to make my lectures useful for everyone.
But I’m never promising unrealistic stuff and I never say unrealistic stuff in my lectures. So by the time I became a professional trader, it was really hard for me. Because I had to work for other companies. And ever since I graduated, I knew that this is what I was going to do. I always wanted to do it.
At the end of the lecture, I will share with you what are the downsides and what are some of my concerns when it comes to trading, and why I actually started recording courses and establishing the Trading Academy.
Looking for a professional Forex trader course to start with? Check out our Forex trading Masterclass with full analysis and learn how the Forex market works, how to execute traders, and how to follow your results.
How professional traders trade Forex
You will find yourself in a situation, guys. You will know whether you want to only trade or you need to do something else. Or maybe you’re going to combine the two. That’s what I want to answer in this lecture. So as I’ve said, I had to work for companies.
And instead of working some random job, when I was learning to trade, I said to myself: “OK, I will be investing my own money one day. I will save money and I will put it in a trading account and I will start day trading. But where am I going to put this money? I’m going to put them in the Forex brokers.“
Because this is how we can trade, we open an account with a broker, and there we have the opportunity to participate in the market through their trading platform. So I said, OK, I will put my money, let’s say I was always planning to start with $1,000, then obviously I increased that.
I will put my money one day into that broker but what’s here? What’s going on here? Where will I put my money? How do they work? What will they take from me? What does it take to make it? So what I did is I started working for Forex brokers.
Beware of scam brokers
I’ve worked for 5 different trading brokers, Forex brokers and it took me over 3 years. I moved from one to another, not because of better money, not because I wanted to establish a career in trading brokers. That’s not what I wanted. I wanted to see how they do it from the inside.
From where they get the prices, how they are managing the people’s money, where they keep them, and what is the risk involved if the broker goes bankrupt. And most importantly, what it takes for me to be safe putting my money in a broker and knowing that at that moment I will be able to withdraw it because that’s very important.
The scam brokers around will take your money but they will not let you withdraw them later. They will find hundreds of explanations and excuses. And when they cannot find any excuses anymore, they will just stop answering your emails or calls.
And then, on one sad day, you realize that you’ve lost your money. This is how I started learning but at the same time, I was working for Forex brokers until the moment I felt comfortable in trading and I knew that I didn’t have to do it anymore and this is when I became a professional trader.
Manual trading is not far from working a full-time job
So, after I became a trader on my own, trading from home and later from an office, then obviously in 2020 again from home, I realized that to be a professional trader has one major concern and that is why I established the Academy. I had my team and I started recording videos and online courses. And I will tell you what was the concern.
When you start trading, especially when you do manual trading, it is not far from working a full-time job. Because when you start trading and you do it seriously, every day from Monday to Friday, you have to be there at least for 2 sessions.
As a professional trader, I used to participate in the London Stock Exchange session and the New York Stock Exchange session. I didn’t do a lot of the Asian because it’s during the night for me. But when you want to be really serious about it, you need to sit in front of the computer, you need to follow the news, you need to know what’s going on in the market, you need to follow a few strategies, look at the charts.
I used to have so many monitors, in some of my old videos, you will see that I have 6, 7, 8, up to 10 monitors. And that was really exhausting. At one moment, I realized that if I’m not trading, I’m not making any money. I had some really good months and some bad months. And most of the bad months when I didn’t make a lot of profit, it was because I was traveling a lot (I’m even traveling right now, and I’m recording this video/lecture where I explain how to become a professional trader).
Why do algorithmic trading with Expert Advisors
So when I was not trading, I was not making money. One of the solutions for me was to switch to algorithmic trading, and I did it.
Right now, while I’m creating this lecture, I’m trading with Expert Advisors or trading robots. And this is what I usually teach in my courses. Moreover, I started creating more content for our students. Because when I’m recording online courses and when I’m recording YouTube videos I have an extra income obviously.
I have followers and subscribers and students, by the time I’m creating this lecture, we have 30,000+ students. Real students in the Academy, who bought our courses and I’m very happy with that. So monthly, I have income from the content that I’ve been creating and sharing my strategies and my systems for trading.
I try my best to create useful content
So even if there are days when I don’t have the opportunity even to trade with algorithmic trading, some problems with the VPS or it’s just not the moment to trade with EAs, there are such moments on the market, I still have the income from the courses. This is how I found myself comfortable, I keep trading but at the same time, I create useful content.
I create videos, I write blog posts, I’ve always wanted to make my content useful. Because I know that when it’s useful, you will watch the next video. Probably, you will get some of my courses, it will be useful, you will be learning something, I don’t want to lie to people, I don’t want to mislead people because you will feel it.
You will understand it in one moment and then obviously, you will not watch any other video from me. So I am really happy to have the opportunity to record videos, and to create content, making income at the same time.
I’m now concentrating more on content creation and investing
Nowadays, trading is not my major priority. This is because I want to dedicate more of my time to create useful content and expand the Academy to thousands of people, so I am slowly switching to investing. And of course, because I have the opportunity now to invest bigger amounts of money.
So in 2020, I prefer to invest and now in 2021, obviously, I’m investing a lot in cryptocurrencies because it was just super easy in 2020 to make profits on the crypto market. And much bigger profit than what the Forex market offers.
And I don’t know how far the cryptocurrency market will go, honestly. A lot of people ask me this question. What I know is, that for the moment, there are a lot of opportunities in crypto trading and I always take the opportunities. If the crypto market starts to fall, then I will just take a lot of the profit, I will keep some of the crypto coins and I will leave the rest for the next momentum when we have the next strong up movement for Bitcoin and the other cryptocurrencies.
The approach you should take to become a professional trader
So basically this is what it takes to be a professional trader. This is what it took to make it. First, you need capital to start trading. Second, you need to learn before you start trading. And third, I’ll suggest you don’t quit your job until the moment you make more money from trading.
So if you do, let’s say $2,000 from your daily work, let’s say this is your salary at the end of the month, I don’t suggest you quit your job unless you have $2,000 from trading monthly. And to be realistic with that, you need to have at least $10,000 so if you make like 20% for the month, this is $2,000.
A lot of the beginners ask me, “Is it OK to start with $100, or with $200?” It is, but you need to be really lucky to grow your account to thousands of dollars, which will make you comfortable to quit your job.
You need to be passionate for you to succeed
And the last thing I wanted to share with you is that to be a professional trader on the Forex market is one thing, to be a professional trader on the stock market is a different thing, and on the cryptocurrency market, it’s another thing. Even in the Forex market, if you do manual trading and you do algorithmic trading, it is very different. You need a lot of different skills and experience and you need to learn in detail one of the two.
So if you don’t know where to start, what I would suggest you do is to try all of those markets. Just try Forex trading manually, Forex trading automatically, take a few courses for one of the trading markets you’re interested in. Take stock trading courses, take cryptocurrency courses.
That’s why usually I do courses for all of these, which will make it easier for you to decide which is your thing. You need to feel really comfortable when you’re doing it, you need to have a lot of desire to learn about it. Anyway, if you’re just forcing yourself to do it, it’s not really going to work.
An institutional trader is not the same as a professional trader
The last thing about being a professional trader, as I’ve said at the beginning, is when you are making enough money for yourself or for your family, so you won’t need to do another job. There is a huge difference between a professional trader and an institutional trader.
A lot of people are wrong when they say you can’t be a professional trader if you haven’t been an institutional trader, that’s wrong. For me, I haven’t been an institutional trader simply because, in Bulgaria, there are a lot of brokers but there are no trading companies like hedge funds or the huge guys who manage funds, and have institutional traders.
It is fair to say I didn’t have that opportunity. I didn’t have the chance. I guess it would have been a great experience in the times when I was working for brokers if I had a few years working as an institutional trader. But the main difference there is not because they have these amazing strategies that nobody knows, what they have is a lot of money and when you trade with millions or even billions, actually it’s not that hard.
Institutional traders know the news before the news is out there
Because even if you buy an asset and the price drops, you’re totally fine because you can buy at this price and if it drops you will still buy. And you will have a better average price at one moment when the price goes up again, which always happens on the market, you will be profiting. They have strict rules to follow.
And lastly, because I’ve been to such offices in London, I haven’t worked but I have visited such offices, they pay for information. They know the news before the news is out there. So these guys pay a lot of money to Reuters, Bloomberg, and the other huge media, where they get the news before the news is published on Forex Factory or on the economic calendars of the brokers.
This is how they trade the news very successfully because they know what they are doing and they have the information just before everyone else.
This was a brief overview of how I started with trading and what it took me to become a professional trader. If you want to make a career in trading, consider investing some time in education first and take a good professional Forex trader course before you jump into the deep waters of trading. Or crypto course, or stock trading course, it’s up to you.
And if you enjoyed the lecture, I would be happy if you share your thoughts in the comments below. I will see you in another lecture about trading.
In this lecture, I will talk about the Crypto.com CRO Mainnet launching and I will share my prediction about the price of the coin.
How CRO Mainnet launching affected the CRO coin price
The Crypto.com Mainnet launch date was on the 25th of March 2021. Do you know the market and the community reacted? Well, very positive, and in the following lines, I will tell you why. Moreover, I will show you why the launch date was the biggest day for the CRO coin until that moment, and what is my price prediction for this coin in the near future and in the long term.
On the 22nd of March, 2021 we had some big news from Crypto.com, and below is what they posted on their website. “CRO Mainnet launching will be on March 25th“. According to their publication, this will be a fully decentralized, open-source, public chain with high speed and low transaction fees.
And this is right after they made an announcement of a 70 billion CRO burn and they state that they continue to aggressively pursue full decentralization of the network. We believe that the world needs a fully decentralized, open-source, public chain with high speed and low fees.
And you can read more about it in the blog of Crypto.com and on most of the news around the cryptocurrency market.
CRO coin chart
But what matters the most to me and what I want to talk about in this lecture is the reaction of the community on that day. And it’s very obvious, you need to look at the chart. So this is the CRO coin chart and on the daily chart, we have a very positive day. Not just a positive day but it’s a record day.
If I put the mouse on it, the lowest point is at $0.1341. This was the lowest point of the day, and the highest was $0.2739.
The CRO coin daily chart
And if I switch to the hourly chart, we have some retracement right now. Of course, many of the people will take quick profits but that’s a huge move. If I go back to daily, you will see the whole picture. In 2020 the market was very positive for the CRO coin.
Then we had the negative market, this is when they lowered the referral bonus. So before it was $50 and after November, it became $25. So this is when you are referring someone and you both get a bonus. And the community didn’t really accept that well. The price of the CRO coin went down below 0.6, 0.5, I think the lowest point was just below 0.5, yes, it is 0.0498.
The “Salsa” formation
And then we had this formation right over here which in trading is called Salsa. It’s a very bullish formation, shows reversal and I was expecting that break.
The Salsa formation in the CRO coin chart
So my first investment with the CRO coin was right at the end of this day. When these tops were reached, I bought them. This morning I bought again and I’m quite happy investing in the long term in the CRO coin.
Because I see that the community is back there and it accepts very well the news from the company. As well the 3 positive days that we have, they were because of some changes in the cards they offer. As well, the community accepted it very well. And then, boom. A record day, and it nearly doubled its value in one day.
As you can see at that moment, we had a negative day for Bitcoin, the first huge negative day after it reached the $50,000 threshold.
So having some CRO coins that are actually going into positive when Bitcoin has been negative is a great risk diversification for me.
I will see whether they will go and where it will close. If it closes above $0.30, I expect consecutive positive days.
The first huge negative day
Community’s reaction
But if there is a retracement, that’s really normal because a lot of the people that bought it cheap would be really happy to sell right now. I’m personally looking more into a long-term investment with the CRO coin because I really believe in the company. I like what they’re doing so far, Crypto.com is one of the exchanges I’ve been using. And most importantly,
I see that the community is back there. Actually, it has always been there, the fact is that now they accept really positively the news from the recent days about the Visa cards they offer, and then about the Mainnet launch date. So I rounded my CRO coins today to 10,000 exactly.
I haven’t yet calculated the average price that I have at the moment but I think it’s about $0.17 which I could have done better but I was waiting really for that reaction from the community to see that there is strong support from the Crypto.com fans and from the people who believe in the CRO coin.
CRO coin price prediction in short and long term
So how do I see the Crypto.com CRO coin price in the short term and in the long term and what is my prediction?
After such a positive reaction from the market, I easily see the CRO coin going to the dollar.
And I think that’s really possible to happen in the next few months or let’s say around mid-2021. And in the long term, I think there is a huge potential in the CRO coin because the exchange is new. Much newer than Binance, for example. And they do a lot of innovations.
Second, there is a huge strong community behind it. And third, this community reacts positively and that’s the most important thing. And look where the Binance coin is at the moment, and why not the Crypto.com coin reach these levels?
So I think in the long term, $100 for a CRO coin is absolutely possible but when I say in the long term, I think that’s about a year, maybe even 5 years from now.
If the company keeps announcing good news, news that the community accepts positively, I think they have a huge chance. And I’ll be happy to hold my CRO coins a longer time, staking them at Crypto.com, compounding the amount.
So please don’t take that as advice to buy CRO coins. I’m not saying that, I’m not a financial advisor. You should do your research, do your diligence, it’s your decision.
Please share your thoughts
Just how I see the market after having such a positive reaction. And my experience in trading shows me that after such a positive day, good times are coming for this cryptocurrency. At the same time, we have a negative Bitcoin but a very positive CRO coin. And because my biggest investment is in Bitcoin, I’m pretty happy buying CRO coin and having this diversification.
So I won’t be losing much value when Bitcoin drops and I have CRO coin going into positive direction. So I really hope that they will keep it up from Crypto.com to support a satisfied community because that’s the most important thing in Cryptocurrency trading and that’s what can drive the price with this momentum.
I’ll be happy to hear your thoughts about the CRO coin and the news and what is your price prediction in the comments below. I will see you guys in another lecture.
In this lecture, I would like to talk about money management in crypto trading and how important it is to have a strategy before you put any real money into the cryptocurrency market.
Why I say real money? Because most of the platforms nowadays offer virtual trading or virtual investment.
Most platforms offer virtual trading
Simply, you can practice on the market with virtual money without losing anything. But when you start trading or when you start investing, when you want to buy your first Bitcoin, your first crypto coins, you would like to follow a strict money management plan.
It is true that over 95% of the investors and traders lose their money on the Forex market and over 70% of the retail traders lose their money on the crypto market, and the stock market.
I know that because I used to work for brokers before I established the Academy.
Don’t put all your money in one market
So it is vital to have a good money management strategy and I will explain what that is with simple words.
Let’s say you have a capital of $10 000. This could be your savings or it could be the capital from your company. This could be what your parents gave you, I don’t know. But let’s say you have $10 000.
So how much of that amount you should spend on cryptocurrencies?
I would never suggest anyone putting all of their money into one market, meaning into crypto, into Forex, into stocks. A wise investor or trader will always diversify the risk between the different markets.
Yes, there are people who made a lot of money from the crypto market by putting all of their money into it in 2020, 2021, 2017. But at the same time, there are so many people that lost everything in 2018. So you want to avoid that risk.
Lower crypto percentage when investing in different markets
Keep in mind that there is always the possibility that the market can crash for any reason. Look what happened in 2020 with the coronavirus. Nobody expected it. At least the average people like you and me. So before you buy any cryptocurrencies, it is very important to grab a piece of paper and make a money management plan for crypto trading.
Say I have that amount of money. I will buy crypto with that amount of money percent and I will keep it strictly. For example, you have $10 000 and you say I will buy a maximum of $5 000, which is 50%. Personally, I find that still too much, and especially if you want to diversify between crypto, stocks, fiat currencies, you can go for futures, anything. And if you are investing in different markets, then you should lower the percentage for the crypto.
The important thing here is that you should always follow the rules set in your crypto trading money management plan. If you say 10% of my savings will go for cryptocurrencies, then no matter what happens on the market, is the Bitcoin at $100 000 or not, you buy with no more than 10% of your savings. If next month you earn more, you can add another 10%. If you said 10%, it means 10%.
My money management strategy for crypto trading
In the Bitcoin for Beginners: Cryptocurrency Investment course, I share with you what is my personal money management strategy for crypto trading. I share with you how I feel comfortable when I’m investing in cryptocurrencies. So this is a good money management example. The one that you follow strictly. If you ask me then I would say: “No more than 15-20% of your savings to go to cryptocurrencies!“
That would be the maximum I would go for and that’s what I use. I usually try to stick to 10% but if there are great possibilities on the market I would go to 15%, but a maximum of 20%. That’s how I personally do it.
So, if I have $10 000 saved I wouldn’t buy crypto for more than $2 000. That’s how I do it. It’s up to you, but make sure when you decide your risk to keep it strict and not to fall into the emotions. That will keep you longer on the market and that will make you profitable.
Thanks for reading the lecture. If you have enjoyed it, feel free to share your comments and appreciation below. I will see you in another lecture.
Crypto.com launched a new NFT platform on the 26th of March 2021
Crypto.com has launched the new open-source public blockchain that is focused on payments, DeFi and NFTs. At Crypto.com, the NFT platform is looking to become the world’s largest and most user-friendly NFT platform.
Crypto.com announcement on the launch of the NFT platform
Of course, the news pushed the CRO coin higher, the community expects the new platform.
Today, I will explain what the NFTs are, and why I am also looking forward to the new NFT platform from Crypto.com.
NFTs are the new mania, the new phenomenon, the new unbelievable digital assets that sell from a couple of hundred dollars up to tens of millions.
NFT stands for a Non-Fungible Token, which means that this is a digital token. That’s a type of cryptocurrency like all the rest we know, but unlike a standard coin, the NFT crypto coins are unique. Meaning that every NFT is just one and it is a unique token in the digital world and this might pump their prices to mind-blowing figures.
An example is Twitter CEO, Jack Dorsey, who sells the first tweet for 2.5 million.
Jack Dorsey’s tweet sale
And the NFTs are something new for the cryptocurrency world. It is new for me, it is new for the crypto exchanges too. And I’m very excited that Crypto.com launches the NFT platform. I believe everyone in the community will feel safe purchasing NFT crypto coins from the Crypto.com platform, and not from any website that is not established as Crypto.com is.
Purchasing NFT crypto coins
And at the same time, we will feel much comfortable purchasing NFT crypto coins with the funds we already have in our accounts on Crypto.com instead of trying to fund accounts on external websites where currently the NFTs are available.
On some of the websites, it’s kind of hard to fund an account especially from some countries outside the U.S. And exactly for that reason, I didn’t purchase any NFT coins so far but having them on Crypto.com, I guess it will be much easier. And if I decide to purchase any, of course, I will record a lecture while doing it.
But again, keep in mind that this is something new, we can say it’s still experimental. We don’t know where it will go, we don’t know if we purchase NFT crypto coins for $1,000, will we able to sell them after that for a more expensive price or we will be just keeping it for ourselves?
For the moment, most of the investors accept the NFTs not just as an investment but also as a support to a favorite artist.
So let’s see below what exactly Crypto.com published on their blog. Crypto.com launching the NFT platform, with exclusive content from the different artists, as I said.
What Crypto.com published on their blog
This could be a piece from Aston Martin up to Snoop Dogg, for example. And Crypto.com has promised that this will be the most user-friendly and the world’s largest NFT crypto coins platform. Below, you can read more information about the event. But I will definitely make a review of it once it is live.
NFT crypto coins are different from other cryptocurrencies
I don’t want to go into details about the NFTs, how exactly they are being created and how they work.
But with very simple words, this could be just a JPEG or a very short video from an artist that is one of a kind. It’s a token but it’s unique. This is what makes the NFTs very different from the other crypto coins we know. Because most of the tokens that we know have a certain number of coins into circulation.
But with NFT crypto coins, it is just one. It’s a unique token and this is why some investors might find a huge value in the piece because it’s unique and they hope that they can sell that piece after years at a much more expensive price. Or they just want to have it for themselves, so no one else will have it. But the important thing is that the ownership of the NFT crypto coins is recorded on the blockchain.
The ownership of the NFT crypto coins is recorded on the blockchain
So why did the news about launching the NFT platform pushed the CRO coin higher?
For beginners, the CRO is the Crypto.com token, which I also invested in and recorded already many lectures about it.
The CRO coin of Crypto.com
But the sweet thing about it is the fact that when Crypto.com launches a new platform, services, anything that will be useful to the community, it pushes the price higher.
A month ago, I recorded a video about the mainnet launch and the CRO coin is burned. If you haven’t watched it, you can follow this external link (opens in a new tab).
I’m very glad that Crypto.com is offering new features, new platforms, new wallets. All the time they have something new to launch. And obviously, the community recognizes this as progress. And many investors and retail traders find value in the CRO coin because it represents the service that Crypto.com offers.
I have invested in the CRO coin too. And if you want to see all the assets that I invested in, I have shared my crypto portfolio spreadsheet. Check out my Patreon page to get access to the spreadsheet.
My portfolio spreadsheet
And if you want to get a bonus when you are staking CRO coins, you can follow this referral link.
Crypto.com NFT platform review
From what I saw on the first day Crypto.com launched the NFT platform, I think they have a huge chance of achieving that. One sentence for those of you who do not know what NFTs are, and I will review the platform from my computer.
The NFTs are Non-Fungible Tokens representing a digital piece of art, a JPEG, a short GIF, or a video. And the most important is that the NFTs are unique and their ownership is recorded on the blockchain.
Now, let me show you the Crypto.com NFT platform right on my computer.
So when you land on Crypto.com, on the top you can see the new tab, NFT. And if you open it, the first thing you will see (on Saturday, March 27th) is the cool Formula 1 Aston Martin car.
The cool Formula 1 Aston Martin car on Crypto.com NFT platform
Now, the first thing you will notice, it’s really simple. On the top, we have the Explore, Drops, My NFTs, and My Profile.
So I will start from the Drops. Basically, these are the NFTs that Crypto.com will be offering. At the current moment, we have “A New Era Begins” with the Aston Martin. And below, we have the ones that ended, so yesterday or the first day was with the artist Boss Logic. And it’s ended, so we cannot buy straight from Crypto.com these NFTs anymore.
Upcoming drops on the Crypto.com NFT platform
How you can purchase NFT crypto coins
We can only buy them from the people who have bought them and are now reselling them. But at the current moment, we have live the Aston Martin NFTs. And if I tap on it, you will see some info about the creator, about the Drop, and below are the pieces. So we have the unveiling which starts from $10,000, then we have the first run from Vettel and we have the number of editions.
So let me click on one and you will see what it looks like, let’s hear it. I’m not going to leave it until the end but the price is $3,000. Some people might find it costly, others that are huge fans of formula and Vettel might find it super cheap and they just might want to have it in their wallets. However, that’s a personal choice. What I want to show you more, is how you can purchase one.
So let me click on the 131 available, so these are the pieces that are available until the moment.
How you can purchase NFT crypto coins
And I will tap on buy for $3,000, you see that I have the option to pay with credit or a debit card. Which makes it very easy for the people that are not Crypto.com users or the people that don’t have any cryptocurrencies. They can just purchase NFT crypto coins with a debit or a credit card. And this is what makes the Crypto.com NFT platform super simple according to me.
The new Drops from Crypto.com
Let me go back and what’s interesting here is if you don’t want to miss the new Drops from Crypto.com, you can just subscribe. I will do that right away.
And then on the top, we have as well the Explore. This is where we will be seeing the NFTs that users bought and are now selling them. So, for example, these arts from Boss Logic, yesterday were selling for $2,000. And you see that the users are selling them at a more expensive price, which is obviously very logical. At the same time, someone has bought the Vettel’s first run which we saw starts from $3,000 and the guy is selling it for $3,688.
Actually, if I tap on 34 for sale, we will see how many of those pieces are available. If I click on Select available editions, right away we can see that there is a user who wants to sell his piece for $1 million. I wish him luck selling it for this price. However, it’s a personal choice what will be your strategy once you purchase NFT crypto coins. You can just keep it in your Collectibles.
NFT tokes for sale on the Crypto.com platform
So if I tap on My NFTs, you will see that I have the page with Collectibles. And then I will have the ones that I am selling or the ones that I have created and pretty much that’s it.
You can manage your profile easily, you can follow the Drops coming from Crypto.com, and you can explore the NFTs that you have missed to buy and you want to buy from other users who have bought it from the Crypto.com NFT platform.
I really found it awesome, it’s user-friendly, everyone can easily become an owner using a Visa card. Usually, NFTs are complicated but when you see a platform like this one, it’s just simple. And I’m a step away from purchasing one of these cool Aston Martin NFTs. But really? $3,000 for a short video? It’s not just a short video, but these are tokens. And later we can sell them. But I will think about it again.
Is it worth spending $3,000 for NFT? Do you plan to do it? Let me know what you think in the comments below. I’ll be glad to hear your thoughts. And if you enjoyed this article and our vlogs, subscribe to Trading Academy YouTube channel so you won’t miss anything new about the crazy crypto world. I will see you guys in another lecture.
What is NFT crypto coin?
NFT stands for a Non-Fungible Token, which means that this is a digital token. The NFT tokens represent a digital piece of art, a JPEG, a short GIF, or a video. The NFTs are unique tokens and their ownership is recorded on the blockchain.
What is DeFi?
DeFi, or decentralized finance, is a form of finance, based on blockchain, that does not rely on central financial intermediaries such as brokerages, or banks to offer financial instruments. DeFi recreates traditional financial instruments in decentralized blockchain architecture.
Hello everyone, in this lecture, I will show you how to generate hundreds of trading strategies for Bitcoin. To achieve this, I will use EA Studio, which is a strategy builder software that we use most in the Academy.
As I’ve said many times in other lectures, EA Studio has a tool called Generator. The Generator can use the historical data that you import from your broker or the Premium historical data that is bundled with EA Studio. In this case, I will use the Premium Data that comes directly from the Forex Historical Data app. And I made it work for the Hot Forex broker which I am using at a moment for Bitcoin trading.
In the Historical data section, I have also the Symbol, which is the currency pair that we’re trading with. Since I want to generate trading strategies for Bitcoin, I will use the BTCUSD symbol. Finally, I have the Period, from where I can select on what timeframe the strategy will trade.
So if I just click on the Start button, you will notice the high speed. This is the fastest Generator for strategies. In just a few seconds, I have over 60 trading strategies. And these strategies all go to the Collection tab automatically.
Generating Bitcoin trading strategies in EA Studio
If I click on the Collection, you will see that the Bitcoin trading strategies are listed there. And I have many pages, each containing 10 strategies.
Collection with trading strategies for BTCUSD
Now, obviously, I don’t want to have some random and simple Bitcoin trading strategies. So I will stop the Generator and I will delete all of these trading strategies. But before actually deleting them, I will click on one of the strategies and I will show you what tools we have in the Strategy section.
How to optimize Bitcoin trading strategies
We have Optimizer and Normalizer. The Optimizer is very similar to the Optimizer that we have in MetaTrader. So if I just click on the Start button in the Optimizer, it will look for better parameters. It didn’t find any in this case, but it will look for better parameters with the trading strategies.
Optimizer in EA Studio
Now, optimizing a trading strategy sometimes is very risky because you can over-optimize it. In other words, you will find the best parameters but just for the tested period.
Usually what happens with such strategies is after you start trading, they start losing. Just because you have found the best parameters exactly for the period you are testing. And these are not robust strategies.
Normalize the Bitcoin trading strategies
The next tool we’re going to use when generating our Bitcoin trading strategies is the Normalizer, which is a unique feature of Expert Advisor Studio. It normalizes the strategies, reduces the Stop Loss, the Take Profit if you’re using. In other words, it pushes the parameters to the default parameters.
The Normalizer
Using Walk Forward and Monte Carlo
Then we have the Walk Forward, which is a little bit more advanced tool.
If I click on Start, this tool optimizes the trading strategy for a certain period of time. Then it tests the strategy on the next period, includes that period, and optimizes again, and tests the strategy again.
You can see that it found a much better result, which means that it found a better strategy.
The Walk Forward
We have the Monte Carlo, which is my favorite instrument among the robust instruments. So, Monte Carlo, Multi Market, and Out of Sample Monitor are robust tools. They don’t change the strategy like the Optimizer, Normalizer, and Walk Forward, but they test the strategy if it is robust or not.
With the Monte Carlo tool, I can test with random historical data, random spread, random slippage, random position entry and exit, and randomly closed position.
We have Strategy variations, which is the option I use the most. This will simply test the strategy with different indicator parameters. And I like to use “Randomize backtest starting bar”, which will backtest the strategy from different bars or from the different starting points. In addition, it is not a bad idea to check “Randomize spread” because as we saw with Hot Forex and with most of the brokers, the spread is floating.
The Monte Carlo
So sometimes your position will open on a $24 spread, sometimes $25. And if there is volatility, it might be even more. So if I click on “Start”, it will perform 20 tests and I see that just 13 out of the 20 were validated. Which is not enough for me. I like to have at least 18 or a minimum of 16 out of the 20, which is 80% of the tests to be validated. That is something I always use.
Testing different markets with Multi Market
Then we have Multi Market where we can add different markets.
The Multi Market
For example, I can add Bitcoin, Ethereum, Ripple, or any other cryptocurrency that I have as historical data and I can check if this trading strategy works well on the other markets.
And as well, I have the Out of Sample, which I will explain just in a minute.
Using the Reactor to generate Bitcoin trading strategies
Now the best thing with EA Studio that was improved during the years is that we don’t have to do all of that manually anymore. I just went over it to demonstrate what we were doing before. We were generating strategies, they were going to the collection after that, if I like any strategy, I was going through Optimizer, Monte Carlo, Multi Market one by one. Understand what I mean?
It was taking time because I had to do it manually for each trading strategy. Now, we don’t need to do this anymore because we have the Reactor. Right under the Generator is the Reactor.
The Reactor
If I go to Generator, we have historical data, strategy properties, and Generator settings. And if I click on the dropdown arrow after Generator and switch to Reactor, here we have the same things plus optimization and robustness testing.
So what the Reactor does is it passes all the strategies through this testing automatically and I don’t have to do it by myself manually.
So I will remove all the strategies in the Collection. I will switch to the Reactor and I will just set it very quickly so you know how I’m using it.
Now in the Reactor, I will go for Bitcoin on the H1 hourly chart. In the Strategy properties section, I will set Entry lots to 0.01 because this is the minimum quantity I can trade. And I would suggest you always start with 0.01, especially if you are generating Bitcoin trading strategies because this way you will just test the Expert Advisors.
You won’t risk a lot if you try them on your Live Account. And I don’t like to stimulate and motivate my students and traders to use huge volumes or big accounts. That’s a personal choice how much you want to trade. One more time, changing the lot doesn’t change the Bitcoin trading strategy or the Robot. It changes just the result.
Should you use Stop Loss and Take Profit
Then I have the option to select if I want to use Stop Loss or Take Profit. I will not use Stop Loss and Take Profit.
First of all, I have done many tests with EA Studio generating Bitcoin trading strategies with Stop Loss, without Stop Loss, with Take Profit, and without Take Profit. I don’t have 100% proof that one of the two works better.
So if I include Stop Loss, let’s say I will be using a Stop Loss somewhere between 1 000 and 10 000 pips. Now, if your broker has 2 digits (the broker I’m using for this lecture has 3 digits), if I set a Stop Loss, let’s say $100 or $200, then if you are using more or a few digits, the Stop Loss will change. It will become either a $1000 or it will become either a $10.
Setting the Bitcoin trading strategy properties in the Reactor
And that is another thing that I have improved from the previous version of the Bitcoin Algorithmic Trading course where I was including Expert Advisors with Stop Loss and with Take Profit. Some of the students were like, “why don’t the EAs work with my broker” or “why do I see very huge Stop Loss and very huge Take Profit“.
And others were just fine because they were matching the digits with their broker and my broker. That is why when we are talking about Bitcoin, I do not use Stop Loss and Take Profit.
And for the beginner traders, these are automated levels where the position will close on a loss or it will close on a Take Profit.
But if you don’t have a Stop Loss and Take Profit, the strategy will simply exit based on the exit condition. There will be an indicator inside. So no worries if you don’t have Stop Loss. The trade still closes when the exit condition is there. And many traders say that it is better to trade without Stop Loss and Take Profit. One more time for me, I don’t have a 100% statement to say, is it better without or is it better with.
That’s why in the course I include Bitcoin trading strategies that are created without Stop Loss and Take Profit. So we will depend on the entry rules and on the exit rules. But you can test, of course, generating Bitcoin trading strategies with Stop Loss and with Take Profit.
Setting the generation time period in Generator settings
In the Generator settings section, I have the working minutes, so I set it to 1 hour and you will see how many Bitcoin trading strategies it will generate in 60 minutes. Usually, I leave the Reactor working for 10 hours, which is 600 minutes, and this way I leave it overnight and actually right now I’m recording late in the evening, so I will leave it to 600 minutes because I want to get more and more Bitcoin trading strategies.
When we generate for a longer time, it doesn’t mean that we will get better strategies. We will just get a bigger number of strategies. And in the Collection, we will see always the top strategies. The longer you run it, the more chances you have for finding better and better strategies.
Then for Search best, I will leave it the way it is – Net balance – so, at top of the Collection, I will see the Bitcoin trading strategies that have the most profit.
Using Out of Sample (OOS)
I will select 10% Out of Sample and what that means?
If you remember, the Out of Sample Monitor divides the whole backtest period into different zones.
Out of Sample monitor
So if I have 30% Out of Sample, this means that the Generator will use 70% of the historical data to generate Bitcoin trading strategies and it will simulate trading on the last 30% of the data.
Now, if I switch to 10%, this means that the Generator will use 90% of the time. And for the last 10%, it will simulate trading. And in our case, with the historical data that I have, this will be from the 3rd of August until December.
So for a little more than 4 months, it will be just a simulation of how these strategies would perform if I have placed them for trading on the 3rd of August.
The MACD Indicator
But actually, I won’t be testing them on a Demo Account or a Live Account, the strategy builder will do this simulation. And this is one of the methods to avoid over-optimization because I will just choose the strategies that are profiting in these last 4 months.
So going back to the Reactor, I will use Out of Sample 10%. For the Max entry indicators and Max exit indicators. I will leave it as it is.
The Generate strategies with preset indicators setting will be suitable if you have some favorite indicators. For example, let’s say you like the MACD Indicator and you want the MACD in every strategy, you can check that, when you click on it, you will go to Preset Indicators in Tools and then you can add MACD or any other indicator. Then this MACD indicator will be in all of your trading strategies.
Setting preset indicators in EA Studio
But I don’t usually do that. I want the Generator to show me which are the best combinations between different indicators.
How to use the common Acceptance Criteria
Make sure to set a checkmark before the Use the common Acceptance Criteria.
We need to use it. This is where we set some criteria. For example, I will select that I want to have a minimum of 500 counts of trades for every strategy or for every Robot.
Generator settings
Now, with time I found out that the more count of trades we use the more robust strategies we have.
Because imagine you have a backtest just with 20-30 trades or you have the Bitcoin trading strategy executing just 20 or 30 trades for the last 3 years. I guess you wouldn’t be happy trading such a strategy.
But having 300, 400, or over 500 trades that happened for the last 3 years, and the strategy is profitable, you will know that this is a robust strategy and you can depend on that strategy for the future. Because if it executed 500 times the same rules and it kept being profitable, then there is a higher chance that the strategy will keep being profitable in the future.
The minimum profit factor of 1.2 is just fine.
The profit factor is the net profit divided by the net losses.
You can add any other criteria, but I will stick to the Minimum count of traders and the Minimum profit factor.
And as well, we have the option to set criteria, for In Sample part which in our case will be the 90% zone. And I will go to the profit factor again, but I will decrease it just to 1.1. I will remove the net profit, no net profit. Obviously, on the top, we will see the strategies that have the most net profit.
So Minimum profit factor is 1.1, and this is the Acceptance Criteria that I will be using while generating the Bitcoin trading strategies.
The common Acceptance Criteria
So what happens now?
The Generator will produce strategies on Bitcoin, on the hourly chart without Stop Loss and Take Profit. It will generate the strategies over 90% of the historical data. And for the last 10%, it will test them, it will simulate trading and it will pass only the Bitcoin trading strategies that fulfill the Acceptance Criteria. Only the strategies that have more than 500 trades and that have more than 1.2 as a profit factor and that have more than 1.1 in the In Sample and in the Out of Sample.
Avoid optimizing strategies
I’m not going to use Optimize strategies settings because it is risky to over-optimize the strategies.
With my experience, I know that the Generator finds good enough combinations between indicators and parameters, so no need to optimize them and to look for better parameters. That’s personal, in my opinion. So in this lecture, I’m just showing you how I use the Reactor by myself to generate 100s of Bitcoin trading strategies.
And below we have the robustness testing tools. I will leave the Monte Carlo test, meaning that at least 16 out of the 20 tests, or 80%, from the Monte Carlo, should be true.
And if the Bitcoin trading strategies from the Generator pass the Acceptance Criteria, they will go through the Monte Carlo. If they go through the Monte Carlo, we will see them in the Collection.
We will see the number of strategies that are generated. How many pass the validation and how many trading strategies pass the Monte Carlo? And if the strategy passes everything that I’ve said, it will go into the Collection.
Number of Bitcoin trading strategies generated
And one last thing I wanted to mention, if I click on tools and I go to settings, I set it usually to close the trades at Friday close or at Friday to close all trades by 9:00 PM.
Different brokers close at different times on Fridays. Some will close at 10:00 PM, others at 11:00 PM, others at midnight. I put it at 9:00 PM. So it doesn’t matter what your broker uses as a closing hour, I want to make sure that you will not have trades left behind for the weekend.
Setting the trading session time
Now, I will return to the Reactor and I will click on Start.
Again the generation process is very fast but you can notice the difference. Not so many Bitcoin trading strategies are going into the Collection now. Only 1 has passed everything. And it went in the Collection. You see a very nice equity line and as well, the Out of Sample test is profitable.
The Bitcoin trading strategy in the Collection
So what I will do? I will leave the Reactor running for 600 minutes, which is 10 hours. Something else that I will do right now is to open the very same EA Studio on the other 2 browsers and I will generate strategies at the same time for M30 and for M15. And not just on different tabs, but on separate browsers, because this way the software works faster.
This is one of the things that I liked most the first time when using EA Studio. You can run multiple Reactors on your computer on different browsers.
I will leave it now for H1. Then I will open 2 more browsers actually for M30 and M15. And in the Bitcoin Algorithmic Trading course, I show you how many Bitcoin trading strategies I have generated and what strategies we will have in the Collection.
Thank you, guys, for reading. I hope this lecture will be useful to you and will help you to understand how to generate simple and complex Bitcoin trading strategies in less than a day using the EA Studio strategy builder.
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In this lecture, I will share with you how to use crypto trading software to create strategies and use them to trade with the major cryptocurrencies. You will see how easy it is to automate the strategies with one click and use them for trading with Robots on MetaTrader.
Here in the Academy, we use Expert Advisor Studio, which is one of the best strategy builders on the market. EA Studio is suitable for both beginner and advanced traders, interested in Forex, cryptocurrencies, stocks, and even gold trading. If you haven’t watched the free EA Studio Basics course yet, you can enroll here.
So, in EA Studio we have 2 options. The first is to generate strategies using the historical data that we have prepared, and the second is to build the strategy.
So if you have a strategy for any trading asset, let’s say Bitcoin, and you have your rules for the strategy, you can add them here.
Adding a rule
Using multiple indicators
For example, I can add a rule. Let’s pick any of the Indicators, RVI, or let’s take the RVI Signal and for RVI Signal, we have a few entry rules. RVI line crosses the Signal line upward, RVI line crosses the Signal line downward, RVI line is higher than the Signal line, RVI line is lower than the Signal line.
RVI entry rules
I will select RVI line crosses the Signal line upward, the first one on the top and I click on Accept and you see that I have a Balance chart immediately, which is obviously losing.
The balance chart
But we cannot have a trading strategy just based on 1 indicator.
The best results are coming when we combine trading indicators.
So that’s why I will add as well an exit condition. And let’s grab now the RSI, which is one of the most popular indicators in trading. And again, we have a few more options here. RSI rises, RSI falls, RSI is higher than the Level line, RSI is lower than the Level line, RSI crosses, RSI changes. And the one I will be using is RSI crosses the Level line downward. This one right here. Then I click on Accept.
The RSI
Improving the strategy
And look at that, we already have a profitable strategy.
The balance chart changes
That’s the Balance chart. So the account starts at 10 000. This is how it is set in the Tools and Settings. You can change that in the crypto trading software. I will show the settings in EA Studio a little bit later, but you will see that already from the two indicators.
We have a Balance chart and the best thing is that we see it at the moment. I don’t need to test this strategy on MetaTrader, but I see the backtest straight away, right after adding the indicators, and I can play a lot with the strategy to improve it. So for example, in the RVI period, I can increase it to 20. Let me see if that will be better. Not really.
I will go to 30. That’s a little bit better. But I see a huge drawdown in the middle. I will go to 40. No, not really. Let’s change the RSI. I will increase the Level line for example to 40 and the period I will go to 30, click on accept, not really.
Having the right parameters for the strategies
Let me decrease a little bit the period and I will increase it a little bit the level. I click on Accept, which improved the strategy a little bit. Now I will start increasing as well, the RVI, I click on accept, let’s go to 3, accept, we have a much better result.
I have hundreds of options actually for parameters, and especially if I use a few indicators.
It is really, really hard if you don’t have a strategy builder or crypto trading software to find out which are the best parameters for the strategies.
The good thing is immediately, right after we do a change, we see the results. Let me try increasing it one more time. Now, I think with 43 it has a much smoother equity line.
It depends with the amount and strategy to trade with
As well, we have Backtest output.
The backtest output
Net profit is 12 599 for the tested period. So the data starts from the 23rd of May 2017 and it is until December 2020. And we have a profit per day, $2. But actually, that is trading with 0.1.
If I increase it, for example, with 1 lot and I click on Accept, you will see the same equity line. This doesn’t change the strategy but it changes the result. As well, you can add Stop Loss and Take Profit if you want to.
And of course, you can decrease the lot to 0.01, it depends on the amount you’re starting with.
But one more time, this doesn’t change the strategy. It is the same equity because we have the same rules for the strategy. So it really depends on how much you’re starting and how many strategies or Expert Advisors you will be trading with.
Hiring developers vs. Using software for crypto trading
So once you’re ready with the trading strategy, here is the magic. In the upper right-hand corner of the crypto trading software, you can see Expert Advisor as shown below. If I click on it, I have the option to export this strategy as Expert Advisor for MetaTrader 4 or for MetaTrader 5. Let’s click on Expert Advisor for MT4.
How to export the strategy
Immediately, I have the code exported and that is the ready to use Expert Advisor.
Here is the code.
The code
So if you are a developer, you can I guess change something, modify, improve or remove something. I personally do not touch anything in the code because I’m not a developer. I don’t know how to do it.
In the past, I used to hire developers to automate my strategies, but it was a very hard process because it is expensive to hire such developers. First, these guys take a lot of money, and second of all, it was taking a lot of time.
Doing a backtest on MetaTrader
Such a strategy at that time, that was about 4 years ago, I think, I was paying over $100 for such a simple strategy with 2 Indicators inside. And then there was always a problem with the strategy, with the code.
So I had to send it back to the developers and they were sending me the fixed version and sometimes it was taking a few months to have the final version of the strategy. But even when the Expert Advisor was complete, I didn’t have that type of statistic like in the crypto trading software. Backtest output, Balance chart, Indicator chart.
You can do a backtest on MetaTrader, by the way, but we don’t have so many details like in EA Studio. For example, if I click on the Indicator chart, I can see exactly where every trade was opened and where every trade was closed.
Sell trade
So one more time, the entry rule for this crypto strategy is the RVI line crosses the Signal line upward and this is when we want to Buy. And when we want to Sell it will be the opposite thing. And for the Buy, the exit is when RSI crosses the Level line downward. So if I click one more time on the Indicator chart in EA Studio, you can see below that I have the Sell trade right after the RVI crosses the Signal line downward in this case.
The indicator chart
That’s why I have a Sell trade. I have a Buy, the RVI crosses the Signal line upward. So we can see very clearly where all trades were opened and closed.
And using this crypto trading software long enough gave me a great experience and knowledge about how Expert Advisors actually work and when they open trades.
Drawbacks of MetaTrader
And the bad thing with MetaTrader when you are looking at the Indicators is that they are repeating. Sometimes you might not see a cross. For example, at one point it looks like the lines are just touching and it’s really hard to say are they crossing or not.
And when the price changes, the cross might not be visual, but the strategy builder knows that precisely because we have all these values of bar opening, closing high and low, which we said comes from the historical data that we have imported. There is no mistake here. What happened?
It’s 100% accuracy and actually, that is something that is not possible for the human to recognize and to calculate. And one more time, there are hundreds of trades, for example, with this strategy. 506 trades executed for the tested period.
Looking for trades through charts will mislead you
So imagine if you have to go through MetaTrader or any other platform to put Indicators and to follow. Here, I will Buy. Where will be my exit? Where the RVI crosses? Will you see it? I see how close are the 45 and 55 levels in this case. And then this is my next entry. Where is my exit? What happened? Am I Buying?
So for example if you are Selling here and if you start from that moment, are you Selling, do you know if there is no trade already opened at this moment? You don’t know that. We don’t know.
I don’t know, personally, even I have a lot of experience, I know that if I go through the charts and try to look for the trades, it’s wrong. It’s a mistake. Many people do it, but it will mislead you with the results.
How to build a strategy
The only way to do it is with the backtest, such as this one with EA Studio. There is another software that can perform the backtest – the Forex Strategy Builder Professional. And MetaTrader also has a backtest, but it’s not that reliable as the one that we have performed in EA Studio. We have the Balance chart where we see exactly the balance for this strategy.
In the crypto trading software we have a Journal where we see all trades that are opened and closed for that period of time.
The journal
We have a lot of statistical information. Balance chart, Count of entries by weekdays, Profit and loss, Backtest output. But it’s a lot of information that you can find below and that shows a lot more about the strategies.
So this is how you can use EA Studio software to build your own crypto trading strategy and export it as an Expert Avisor robot for MetaTrader 4 or MetaTrader 5.
In one of my courses about crypto trading, I show how I’m using the Generator. And you will see that even if you don’t have such a trading strategy and you don’t know how to build a strategy, you can use the Generator, which will produce hundreds of strategies based on the historical data that you have prepared.
And if you don’t have historical data, if you don’t know from where to start, you can go just straight away with the premium data in EA Studio software, which is the very same data that I’m using for crypto trading. All I did is I changed the spread, the swap to make it work for HotForex, the broker that I’m using at the moment for Bitcoin trading.
If you enjoyed this lecture, feel free to share it across social media so more users can learn about EA Studio crypto trading software. See you in the next lecture.
