Dear traders, in April 2020, I have decided to rerecord the lectures about the never losing formula that I use in my cryptocurrency training courses. There were so many questions throughout the years.
I launched the courses in 2017 and for 3 years, I’ve received hundreds of feedback and questions. For some, it was easy to understand the formula. But for others, it was not really clear.
So now, I will explain exactly how I have done the Formula and what is the logic. And I will make it easier for everyone to understand how the formula works, how I have calculated it and you will see that it’s nothing really hard.
So the never losing formula works great at all times. It worked brilliantly in 2017, 2018 cryptocurrency training videos that I recorded, until this moment. I’m sure it will continue working great for the future.
So I have calculated the never losing formula for the Bitcoin to protect us from the negative trades.
To make it very simple for the beginner traders, what is trading? Trading is when we buy an asset at one price and after that, we close the trade or we sell it back in order to benefit. So, for example, if we buy Bitcoin at $4,010,
and we close the position at $5,000, we will benefit $990 and this will be our profit. However, if the price goes against us, we will have a loss if we close the trade at a lower level. This is the trading, really nothing more complicated.
Cryptocurrency training without Stop Loss
But when we buy assets, we follow precise strategies which you will see in every cryptocurrency training course to execute the trades at the right moment and to take profit or to close the position on a profit at the right moment.
But as I said, there is the chance where the price will go against us. For this reason, people use Stop Loss. This is a level where we can close the trade, save the capital.
So, for example, if we buy Bitcoin at $4,010 and the price goes against us and our Stop Loss is at $3,400, for example, we close the trade there because we don’t want to hold any more losses.
We will have the loss which will be the difference between the 2 levels. And I really don’t like taking losses. And long ago, I calculated how I can avoid having losses and this is exactly what you will learn in this Cryptocurrency training guide. So I will start it very simply here.
I will take an example where we buy 1 Bitcoin at $4,010, 1 lot.
For the beginners, the lot is the quantity that we use. Or let’s say we buy 1 Bitcoin and our Take Profit will be at $210 higher which is the level of $4,220.
The swap is a cost with CFD trading
Now, when we use the trading brokers, we usually pay the swap or this is the fee to the broker if we keep the position overnight.
So if the trade is not closed within the same day, we will pay some swap.
And for this example, I will use $10 of a swap which actually will be lower. But if the trade goes for a couple of days, it will have more swap. So let’s give it a little bit more for this cryptocurrency training example and we round it to $10 which means that we will have a pure profit of $200.
This is the very first scenario that we can have on the market. We buy at $4,010, the price goes up and down, and at one moment it hits the Take Profit.
The trade will close automatically and we will have $200 as a profit. And later in the course, you will see how exactly I enter and how I put the Take Profit, the Stop Loss, everything. So this is the first option we have, the best option.
We enter on the market, the price hits the Take Profit, we have $200 of a profit. And this is $200 if we are trading with 1 Bitcoin or with 1 lot. Now, the second option is we buy and the price goes down against us.
CFD trading allows you to sell and profit
Now, the other possible outcome is the price to reverse after we buy it. If it does, I sell at the level of $3,940 which is $70 lower or this is one-third of the Take Profit distance.
And we place the same Take Profit for the short trade. This would be at $3,730 and this is how it looks like in this cryptocurrency training course. So one more time, we are buying at $4,010, we place a Take Profit at $4,220 which is $210 higher.
If the price goes against us without hitting the Take Profit, if it reverses after we buy, I place a sell stop or this is a pending order. Basically, when the price reaches this level it will execute the sell order automatically or it will sell.
And for the beginners, when we do CFD trading or when we are using the trading brokers not the exchanges, we can sell an asset even if we didn’t have it previously.
I want to make it very clear. And this is the great thing with using brokers because we can profit, even when the price goes down we can sell at one level and we can take the profit at a lower level even without buying before that.
This is because we are trading on the value of the asset. We are trading on the difference in the price.
The idea of this cryptocurrency training Never Losing Formula
Stay with me, you will see how this works later on this cryptocurrency training guide, you will see how I am trading when I am buying and how I’m trading when I’m selling and you will see that it works really nice.
So when the price goes against us, I sell at $3,940 which is $70 lower or this is one-third of the Take Profit distance.
And for this short trade, we say short trade when we are selling, we have the same Take Profit of $210 which in this case will be at $3,730.
It is $210, the same as the first Take Profit. So now the question is how much we should be selling here so it will compensate for the loss of our initial trade. If the price reverses after the first trade, we will be on a loss from this trade. The price will go down and we will be losing.
And what I’m asking you is how much I should be selling here so when the price reaches the level of $3,730, I will have the profit from this trade and at the same time I will compensate for this loss and I will be out with 0 losses. This is the idea of the formula in this cryptocurrency training class.
And I will tell you something, I don’t know which of the two levels will be hit first, but what I know with certainty is that at one moment the price will hit one of the two levels. This is 100% guaranteed.
We compensate for the loss if the price doesn’t hit the Take Profit
At one moment, the price will hit one of the two levels. And I know a second thing with certainty, it will not happen at the same time. This is very important. The price will only hit one of the two levels at one moment.
So my question is, how much will I be selling at this moment so when the price reaches the level of $3,730 I will have enough profit to compensate for the loss?
And I will give you the answer, of course, but I just want you to think about it for a minute. You will see that we compensate for the loss if the price doesn’t hit the Take Profit from the first time.
The calculation in this cryptocurrency training
I will do it very simply and you will see that it’s nothing really hard when we calculate it.
So in order to understand how much we need to sell at this level of $3,940 or $70 lower from the initial trade, we need to see how much is the loss. So how much is the loss from the first trade?
We have 1 lot, we have the distance of $70, and we have another distance of $210 which will be totally $280. If you use the calculator, 70 + 210 is $280.
We said that the distance between the first trade and the second trade is $70. And the second trade is with Take Profit of $210, another $210, and totally we have $280. So this is the loss that we will have if the price reaches the level of $3,730.
For the practice in this cryptocurrency training lesson, Let’s calculate how much we will need to sell over here at $3,940 so we will cover this loss of $280. If we sell 1.1*210, this is exactly 231 so it’s not enough. If we sell 1.2, we will have 252.
Not enough. Let’s increase it, 1.3*210, we have 273. So we are getting close. And if I go to 1.4, you will see that this is the exact lot size we need to sell because we will have 294.
The logic behind the Never losing formula
And since we said we are giving $10 of a swap for 1 lot, and if I deduct $14, I will have exactly $280. If the price goes down and hits this level, we will have -280 from the first trade and then we will have a positive of 294 from the second trade minus 14 for the swap, we will be exactly with 0 losses.
We will exit the whole equation without having any losses even if the price went against us.
This is because we bought at $4,010, the price went up, it didn’t reach the Take Profit, it went down, we sold 1.4 at $3,940 which is $70 lower, we placed another $210 as a Take Profit, and when the price hits this level we are out with 0 losses.
This is the Never losing formula. When the price goes against us, we are out without any losses. And the same logic repeats after that.
But I want you to understand how it works and what is the idea. We open the trade, if the price hits the Take Profit, fantastic, we are looking for the next trade. But if the price goes against us, I don’t want to take losses. And what do I do?
I sell, another Take Profit and I am out with 0 losses. And if this happens on the same day, which is very normal for the Bitcoin to go up and then down with $280, I will even be on a profit because I will not have the $14 as a swap.
How I come up with the distance
But for the calculation in this lecture, I will always add the swap so we will have the formula calculated more precisely. And many of the students ask me how I have come up with $210 as a distance and how I came with the $70 as a distance.
Now, $210 for the Bitcoin is a result of many statistics and researches that I did before launching the cryptocurrency training formula.
And especially from my experience with Robots and algorithmic trading where we use a lot of statistics, I saw that $210 or $200 of a profit is a realistic profit or a realistic distance for the Bitcoin.
I don’t want to put an unrealistic value like $1,000 and wait for it for weeks or months or something like that. And this is why I came up with the $200 because this is for 1 lot, for 1 Bitcoin.
Simply, if you want to have a bigger profit from the first trade, you can increase the lot. For example, if you do it with 2 lots or 2 Bitcoins, then you will have $400. You will need to increase the formula on the other side. And the $70 distance which I call the mid-zone,
is because this is how the formula was calculated long ago for the currency pairs but I have just recalculated it for the cryptocurrency because it works much better with the cryptocurrencies, and especially for the Bitcoin.
You can change the values from the cryptocurrency training course if you wish
So accept these values as given. $210 and $70 which is one-third of the Take Profit distance. And if you want to change it, it is alright. You know how I’m calculating it.
Just keep the ratio 1:3. Don’t change this ratio otherwise, you will mess up. So it’s $210, $70, and $210 below. Keep the ratio if you decide to change the numbers.
There is the outcome as well when the price hits the $3,940 but it doesn’t go down towards the Take Profit, it goes up again. And what we will do, we will buy again at the level of $4,010 and you will see how the formula continues.
Feel free to ask if anything in the Forum if something is still unclear
I hope everything is clear so far. If it’s not, make sure to go over the post again and if it’s not, just ask me. I will always answer you and make it more transparent to the best of my ability.
But just try to follow the logic and you will see that it’s really easy. So I will make a quick recap.
We said we enter at a certain level, I took as an example $4,010 and we have the Take Profit.
If we have the Take Profit from the first time, great, we are out with $200 of profit if we trade with 1 lot and we are looking for the next trade. If the price goes against us, we sell $70 lower, 1.4 lot.
And for this trade, we put another $210 of a Take Profit. So if the price hits the Take Profit, we will be out with 0 losses. We will have a profit that is enough to cover the first trade and possible swap if the trade goes overnight.
And you will see how this works practically during the cryptocurrency training Bitcoin trading robot course but when the first trade is opened, I immediately place the second trade and it has a Stop Loss the same level as the Take Profit of the first trade.
And it has the Take Profit of $210 lower. And at the same time, the first trade has the Stop Loss on the level where we have the Take Profit of the second trade.
Keep in mind that the Bitcoin is very volatile
So this way, when the price hits the level we will have the 2 trades closed. But as I said, you will see this in examples that I have recorded for the course.
You will see how this works on the opposite side if we sell the first time then we buy 1.4. And it is the very same thing just mirrored. Very simple and very easy to follow.
Now, what happens if the price doesn’t reach the Take Profit of $3,730 but we opened the 1.4 trade and the price reverses upwards?
And in this moment, we will need to buy at the same level of $4,010. So once this second trade is opened, we are into the Never losing formula and we have this mid-zone form.
If the price goes in a range for some time, we will always buy at the level of $3,940 and we will always sell at the level of $4,010.
This is how we can compensate for the loss. And from my experience, it doesn’t happen more than 3 to 4 times because the Bitcoin is very volatile.
It doesn’t stay in the range for a long time but I want you to have the values for the next trades. So if it happens, you will know how much you need to buy and how much you need to sell.
This cryptocurrency training formula is great for you if you like mathematics and calculations
And, of course, I want you to learn how to calculate it because this way you will feel more confident. So if the price goes up what lot will we buy?
We will compensate for the loss from the 1.4 sell trade. Let me grab the calculator and see what we have. We will have 1.4*280, 70 + 210 is 280. We will have 392.
So totally, if the price reaches this level of $4,220, we will have 210-10-392 which is -192.
And I think it is very obvious that we will need to buy another 1 lot to compensate for this loss. And here are the calculations. 210 minus 10 from the first position minus 392 from the second position plus 210 minus 10 which equals $8 of a profit.
So if the price reaches this level, we will be out with $8 of a profit. And now from there, again the calculation comes if the price goes down.
And as you already know, when we enter one of the trades there are 2 possible outcomes. Either the price will hit the level and we are out or it will go down and we will need to sell at this level again.
So basically, you will just continue the equation, the calculation, and the calculation on the top. And I don’t want to make it boring for the people who don’t really like mathematics and calculations.
Just practice this cryptocurrency tradining on a piece of paper
So after this cryptocurrency training post, you can have a look at the assignment int he course where I will ask you to do the steps one by one to calculate the formula.
Of course, if you don’t want to do it just go ahead with the course and the examples. But when you see actually the examples of how I’m using the formula, it will become clearer for sure how I practically do the formula and how I apply it.
And for the people who just want to know what are the next lots, they are provided.
So the next time when we need to sell, we will sell 1.4 lot. And then if the price goes up again, we will need to buy 1.95. And then if the price goes down again, we will need to sell 2.75. I will put it right over here for you to see.
And then if the price goes up again, it’s another lot. But I really want you to learn to calculate it so I will leave it to you.
And in the assignment below I will ask you to do all of these calculations. Just grab a piece of paper and draw these 4 lines where we enter, where is the Take Profit, the second entry, and the second Take Profit, and it goes this way.
We are just adding the calculations. And every time you have to add a new lot, you need to ask yourself the question of how much is needed to cover the loss from the last trade opened.
The mistake most beginner traders that do not take any cryptocurrency training is to hope
And as well, I will attach it as a resource file so it will be easier for you to follow it. And, of course, if you want to go over the lecture again you are very welcome to do it.
But simply, if you learn how to calculate it, you will see that it’s nothing hard. And, of course, I don’t calculate it every time I do the trading, I know what are the next lots.
So if the price hits one of the levels, I put the next trade. If the price hits this level, I put the next one and so on until I’m out of the trade without losses. And this is it. This is the Never losing formula, really nothing complicated guys. One more time, we exit the negative trades with 0 losses this way. We enter, if the price hits the Take Profit, perfect.
If it doesn’t, I don’t want to take losses. I don’t want to play chances and I don’t want to hope. This is the most important thing. I don’t want to hope that the price will recover. Maybe it will, maybe not, maybe in a couple of months, I don’t want to hope. And this is the mistake that most of the beginner traders are doing.
The formula is tested and proven
They open a trade and when it goes to a negative, they start to hope, to believe that the price will go back on profit again and they will actually recover the losses and very often this doesn’t happen. The price goes against the trader, they start to fear, they see the losses in the account and they close the trade on a loss.
Then the price goes up again and they buy again. In this case, you see what happens. If I buy, the price goes down, I recover the trade, I am out with 0 losses. I can buy it at a better price.
So this is the market. The price goes up and down. The important thing is how to hit the Take Profit more often.
This is what the strategy will teach you in this course and if the price goes against us, how we can recover from that with a mathematically proven formula that works.
I have tested it and thousands of students of this course have tested the formula and it works. So if it’s hard for you, just put some more efforts because it is worth it.
Just learn from this cryptocurrency training and you will improve your trading
Learn the formula, learn to apply it, learn from the examples that are coming in the next lectures and you will improve so much your trading because you’re not going to have losses in your account anymore.