$500,000 Side Revenue By 2019 Or Bust - A Crypto Follow Along

[eliquid]

Wow @eliquid, I'm super keen to get some tools built to improve my own trading or perhaps even packaged up and sold as a SaaS so this is going to be a super interesting thread for me.

$500k from crypto is certainly doable, rooting for you!

Also going to be possibly building out a SaaS too!

Just want to prove the results here first.

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[eliquid]

Wow @eliquid, I'm super keen to get some tools built to improve my own trading or perhaps even packaged up and sold as a SaaS so this is going to be a super interesting thread for me.

$500k from crypto is certainly doable, rooting for you!

Just seen your sig.

My forum name ( which is also the name I use at other forums ) came from that quote. I had it before "ecigs" were popular. I wanted something exactly from that quote but in a digital sense. At the time back in 2000, all I could think of was "e" and "liquid", e for electronic and liquid from water in the Bruce Lee quote.

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[eliquid]

Well did you buy yet? LTC took a decent dip there for your swing trade plan...

Sent from my SM-G935V using Tapatalk

Just updated

 

[HackVenture]

Also going to be possibly building out a SaaS too!

Nice, I would love to share some input as I've had some success with crypto, perhaps we could even work on something together. Would be a great honour to be able to work on something with one of the OG's in SaaS on this forum, I've seen your other threads.

Just seen your sig.

My forum name ( which is also the name I use at other forums ) came from that quote. I had it before "ecigs" were popular. I wanted something exactly from that quote but in a digital sense. At the time back in 2000, all I could think of was "e" and "liquid", e for electronic and liquid from water in the Bruce Lee quote.

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Heheh cool, I have that quote pinned up on my wall as well, one of my favorites for sure.

 

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[Johnny Bravo]

Out of curiosity, do you take into account the market depth? I find that it is easier to predict price changes with depth and volume than past movement. Of course, I don't really do any day trading. For me the big money is in early investment.

Good luck with your process though! Looks like you've got a good head for it!

 

[eliquid]

Out of curiosity, do you take into account the market depth? I find that it is easier to predict price changes with depth and volume than past movement. Of course, I don't really do any day trading. For me the big money is in early investment.

Good luck with your process though! Looks like you've got a good head for it!

Actually that is a part of it in the indicators I have, but haven't talked about in this thread yet.

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[C-Jay]

Days like today don't really have indicators. The whole market took a dive. It happens.

I got lucky and leverage-shorted LTC from 242 down to 218; sweet gains. When I thought the bleeding was over at 216, I went long. Hopefully the recovery happens soon.

 

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[eliquid]

So the market came up some enough I sold and took the loss.

I wanted to not miss more opportunities by having my money held up.

 

[eliquid]

Glad I sold for a loss yesterday, or else I would have missed LTC dropping to $191 right now

 

[Johnny Bravo]

FWIW, I've done some market research into this area and have discovered that about 70% of respondents were aware of cryptocurrencies, yet a mere 5% had any involvement in it. IMHO, the market is young and violent, but has enormous growth potential (so long as you're not simply gambling with your money). It's pretty ridiculous how much money I've made in this market and will hopefully capture much more as I develop my own business in this area.

As MJ noted in his book, simply because the approach you took was a failure (subjectively) doesn't mean your idea is a failure. Day trading is probably the most least successful (from a market win perspective) job out there. Virtually nobody beats the market which is why people have created bots to do it for us. Even machines aren't very good at it.

I'd recommend refocusing your strategy.

 

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[eliquid]

I've spend most of the day today rethinking my strategy and back testing some new ideas and thoughts.

For the large part:

• I'm moving away from 5-min charts and going into 60-min charts.
• I might move away from LTC to BTC. Not sure yet, but most of LTC mimics BTC of course.
• I think in order to be serious, I am going to go from trading a small amount ( $1200 ) to a larger amount of $10,000
• The indicators I built, while good, are missing something. Sentiment. I'm going to add this in.

Waiting for another good entry I feel safe about.

I'll keep you posted.

 

[Johnny Bravo]

I think in order to be serious, I am going to go from trading a small amount ( $1200 ) to a larger amount of $10,000

As the saying goes, "it takes money to make money."

Obviously it is entirely possible to make money creating value and selling it to willing customers. In fact, this is probably the "easiest" method out there. Best of all, you don't need any money to begin with.

That said, until you actually have a pile of cash sitting in your vault you never truly understand how true the above sentiment is.

Suppose the price goes up 5%. Boom, your $1200 investment just netted you $60. That's almost a meal at a nice restaurant. Not bad for a day's work.

On the other hand, suppose you had invested $10,000 and you get that same 5% increase. Now you're looking at $500. Not exactly at the scale of Warren Buffet, but not chump change either.

The problem, of course, is that you have to beat the market. Think you can do that?

Early in the crypto game I lost $100,000 on a single stupid (driven by emotion) overreaction. That was when I went from a day trader to a long term trend trader.

If you've got the cajones to day trade and think you can win, by all means have at it! Of course, you may want to test your theories with small bets before jumping in head first. And as always, past experiences do not ensure future successes.

Good luck, my friend!

 

[bringitnow28329]

Well what you are missing is risk management although it's good you cut the loss on the bounce. If you set a simple stop loss you don't get caught. This is especially important if you are just shooting for 5 points. Your average loss needs to be smaller than your average gain and the only way to do this is with a stop loss. Some people say use a mental stop but most people don't have the mental capacity to stick to it. It takes years to learn to do this. Most people think if they set a stop the market will know where it is and take it out. That's true but that's okay because it should be part of your plan. Predictable losses are great. It's the unpredictable ones that will hurt you. I have day traded since 2002 and one of my strategies in stocks was to run peoples stop losses around lunch time eastern time. i trade cryptos a lot more now. LTC is one of my favorites. BTC is a different beast and is not nearly as easy to trade. It's a lot like trying to trade SPY. Technical analysis works on SPY but the noise that occurs where will drive you nuts if you are watching tick by tick. A 5 minute should be used for entries. The longer time frame for seeing the actual setups. I use 60 min and 240 min and daily.

I've spend most of the day today rethinking my strategy and back testing some new ideas and thoughts.

For the large part:

• I'm moving away from 5-min charts and going into 60-min charts.
• I might move away from LTC to BTC. Not sure yet, but most of LTC mimics BTC of course.
• I think in order to be serious, I am going to go from trading a small amount ( $1200 ) to a larger amount of $10,000
• The indicators I built, while good, are missing something. Sentiment. I'm going to add this in.

Waiting for another good entry I feel safe about.

I'll keep you posted.

 

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[bringitnow28329]

It's actually fairly easy to beat the market in cryptos (in 2018) if you know how to actually trade. 99% of people do not. They just bought when the market started ripping and lost all the gains because that's what people do that have no idea about how to trade. It's simple to make money when everything is rising but a lot more difficult to keep it. On the other hand if you know how to time the market it not too difficult to make money when the market is falling by shorting or bounce trading. In the stock market is a lot more difficult to beat the market if you are talking about picking stocks especially as you start to hold more than a handful. The biggest thing that people don't understand about any form of manual trading is that it's not just about knowing when to buy and sell. It's 90% psychological and unfortunately this takes many years for most people to learn. Most people give up or blow up long before they ever actually start to control their emotions.

As the saying goes, "it takes money to make money."

Obviously it is entirely possible to make money creating value and selling it to willing customers. In fact, this is probably the "easiest" method out there. Best of all, you don't need any money to begin with.

That said, until you actually have a pile of cash sitting in your vault you never truly understand how true the above sentiment is.

Suppose the price goes up 5%. Boom, your $1200 investment just netted you $60. That's almost a meal at a nice restaurant. Not bad for a day's work.

On the other hand, suppose you had invested $10,000 and you get that same 5% increase. Now you're looking at $500. Not exactly at the scale of Warren Buffet, but not chump change either.

The problem, of course, is that you have to beat the market. Think you can do that?

Early in the crypto game I lost $100,000 on a single stupid (driven by emotion) overreaction. That was when I went from a day trader to a long term trend trader.

If you've got the cajones to day trade and think you can win, by all means have at it! Of course, you may want to test your theories with small bets before jumping in head first. And as always, past experiences do not ensure future successes.

Good luck, my friend!

 

[eliquid]

Decided to be way more calculated and revamp'd some of the TA I was doing.

Also set up some new parameters in how I trade to help remove emotion and "trigger finger" buys/sells.

Started with a small trade today, $1k worth of LTC.



I got into this trade because I was watching the charts and got an alert from a custom script I coded up in TradingView



So what happened was, I got an orange alert ( one of my custom scripts ) at the bottom of the green box above.

I backed that up with the 2 yellow arrows that shows me that RSI and Stoch was down as well at the same time ( they are both at the bottom of their channels ). These acted as a 2nd and 3rd "layer" to tell me price could go back up.

The red arrow was market sentiment telling me shorts were falling just a little while ago, so more people were pulling out of their short position which could indicate more people going long and price maybe going back up. This was a 4th "layer" for me.

The green arrow, while you can not see it very good, is pointing to a thin black line that is a price box I made and the green arrow is pointing to the bottom of that price box. The price broke below that price box and I felt that price would indeed go back up because of this break. Now I have a 5th "layer".

Not labeled, the far right has colored bars which indicate a volume profile based on heavily traded prices. The current price on the chart ( green box ) was aligned up to the bottom of the blue/purple bars on the far right meaning that was the bottom of the heavily traded pricing and plenty of people had traded heavily at higher pricing so I knew we had room to go up. This was a 6th "layer" for me.

So 6 layers of signals telling me this was a bottom ( for now ) and that price could bounce back up. Of note, I try to make sure my signals aren't similar indicators so I can be sure I am not just looking at 6 of the same type of signal and getting mis-lead.

I also had a 7th layer actually, but I didn't really point out. The price not only broke the bottom of my price box, it actually hit a Fibonacci line too which can indicate support/resistance. I tend not to use these myself, although I do like to see them as "backup layers".

So even though I had $10k to trade with, I only risked 5.10 LTC at $195.40 which put me at almost $1k trading. Once bought, I set a limit sell to $200.40 and waited 2 hours for price to go up and capture my profit, which was only $25 total ( 5.10 coins * $5 gain per coin ).

To get a better view of the price box I made, see the below. It's just a visual that shows me what $20 of price movement looks like and where I might be price wise during the current day. $20 is a safe daily movement for LTC because the average 3-day movement is $27 and capturing 80% of it is around $22.



Where the red candle breaks the bottom of the "box" is where I entered my trade since everything else aligned up with what I was looking for.

Im also backing up the 5-min chart trades with how things look at the 1-hr and 4-hr charts as well.

I'm going to trade small a few more times before adding in more risk and more money. I'm moving over about $30k in $10k increments in about 2 weeks and see how far I can push it by raising my $5 take per coin to maybe $8.

At $30k risked, that would have been 153.84 LTC. With a $5 gain, that would have came out to $769 today. At $8, that would have been $1,230 in just 2 hours.

Can't get greedy though.

However, I am going to look at selling shorts in Bitmex so I can gain on the way down as well.

Pigs get fat, hogs get slaughtered...

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[Alxander]

I just HODL

let me elaborate lol.

I joined around 7 months ago.

Started with 1k, dabbling around with ETH, lost a bit and gained a bit back with
other small coins.

Added 1k extra in NEO, bought at 7$, it went to 56$ but sold at $28.

Then I went all in the Request Network ICO, at 6 cents, added 1k extra at 3.3 cents.

REQ is now at 30 cents, hell it even went to 1,20 but I'm such a hodler

My goal is to make more long trades like this, 10x every 6 months.

I know 10x every 6 months isn't possible forever (even tho if I sold at ATH I had almost 40x).

As long as I'll be a

(sorry I hijacked your thread)

 

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[itsemdub]

I've spend most of the day today rethinking my strategy and back testing some new ideas and thoughts.

For the large part:

• I'm moving away from 5-min charts and going into 60-min charts.
• I might move away from LTC to BTC. Not sure yet, but most of LTC mimics BTC of course.
• I think in order to be serious, I am going to go from trading a small amount ( $1200 ) to a larger amount of $10,000
• The indicators I built, while good, are missing something. Sentiment. I'm going to add this in.

Waiting for another good entry I feel safe about.

I'll keep you posted.

Pretty awesome what you've done here. I have stayed away from Crypto...mainly out of ignorance and not being 100% sure on how to implement what I've learned in the stock market/options. A few questions:

1.) Did you move into 60 min charts? When you're trading what is your trend chart and trade chart? I assume that by you posting the 5 min chart this is what you were using as your trade chart. With your indicators lighting up on this chart, are you trading counter trend of the larger time frames (daily in this instance)? On the small time charts, you're essentially trading against the robots. I think if your tests work on larger time frames where you're catching that chunk of the move then you have something. Granted the trades are going to be less frequent and I don't know how this affects your compounding returns being reinvested.
2.) Also earlier in the thread you mentioned having 3 indicators hit on the same candle. Smart way of viewing it, how did you arrive at this number?

You've motivated me to get something open and tested as well.

 

[eliquid]

Pretty awesome what you've done here. I have stayed away from Crypto...mainly out of ignorance and not being 100% sure on how to implement what I've learned in the stock market/options. A few questions:

1.) Did you move into 60 min charts? When you're trading what is your trend chart and trade chart? I assume that by you posting the 5 min chart this is what you were using as your trade chart. With your indicators lighting up on this chart, are you trading counter trend of the larger time frames (daily in this instance)? On the small time charts, you're essentially trading against the robots. I think if your tests work on larger time frames where you're catching that chunk of the move then you have something. Granted the trades are going to be less frequent and I don't know how this affects your compounding returns being reinvested.
2.) Also earlier in the thread you mentioned having 3 indicators hit on the same candle. Smart way of viewing it, how did you arrive at this number?

You've motivated me to get something open and tested as well.

1. My entries right now, are still at the 5-min chart. My research is both 5-min and 1-hr at this moment. I've done a lot of scripting of my own code in TradingView ( with Pine ) and I am actually now writing the code to show me BOTH the 5-min and 1-hr trends so I dont have to switch back and forth bewteen charts. For example, if I write a Rate of Change script.. I write it show me the 5-min AND the 1-hr at the same time as an overlay so I can see both in the same indicator without changing back to the 1-hr chart.. I can just stay in the 5-min and see both.

BTW, what I am getting also works on the 1-hr and longer.. so its a good strategy. I just do my entries at the 5-min so I can spot it sooner, while having the data from the longer views

2. If you mean using 3, and not 2 or 4 indicators hit on the same candle.. I just came to it because hitting 4 meant I missed a lot more opportunities. Hitting only 1 or 2 meant sometimes I got a losing trade. 3 was the good all around number. Does it have to be 3 for me to get in, not always.. depends on the numbers.

BTW, I code a lot of my own indicators.. so 3 works for me in what I coded. It may not work for others.

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[Nigel B]

@eliquid Thanks for sharing - been buried so just caught up - fast, so apologies if I missed anything which answers the following.

I've been in and following LTC for a long time, seems to me you jumped in around the LCC fork - which surely means that right now the trading might not truly reflect the 'normal' behavior of the coin?

I've been playing options much along the lines you are playing crypto for a number of years. Like you I set entry and exit, and ignore any 'lost gains'. I also seem to have more fixed loss realization built in - but it took a solid two years to get my tolerance figured out.

Totally agree with focusing on just a few coins - I am watching threads elsewhere with people diving in and out of coins who are eating gains with bad buys and fees every day. Somewhere I red someone who'd been trading crypto for 5 years and was "about even" - that takes a special skill!

Good luck. May contribute as you go - because I was doing the same until I couldn't give it the time in Feb!

 

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[TreyAllDay]

@eliquid Don't want to sound like a fanboy, but you're exactly the kind of entrepreneur I want to be one day. Sounds like you have the freedom and knowledge to explore all types of new business ideas and it doesn't sound like you have huge time investment or invest a ton in HR systems.

I'm passionate about exploring ideas and businesses too and everyone seems to have preconceived ideas about how tech/sass entrepreneurs should operate: getting big investments, hiring a bunch of staff, having to "disrupt", working 18 hours a day, spending 10x longer perfectly coding software with every tab in the right place, etc.

Anyway - thanks for sharing all you do

 

[eliquid]

Did a small trade again today.

Im finding I need to expand out if I want to trade daily. Waiting for the best entry can take time on 1 coin.

Im sure I can do better, it will just take some time to get the nerves up.

I went in at 45 LTC @ $207 and 5 LTC @ $206.01

Sold all 50 @ 208.99 for a profit of $104.45

Been working on my own little bot coding it up and integrating into Gdax and Binance so I don't have to hunt these small trades myself.

I'm going to let the bot do the work hunting it down and executing the trades.

That will remove a lot of "emotion" and trigger finger accidents. It will also let me trade without having to watch the screen all day ( even with alerts ) and while I sleep. Just going to set it to small gains and safe settings.

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[eliquid]

Entered another LTC trade and sold successfully.

$102 total revenue on that trade. $206 total for 2 days on LTC. Time to bump it up some more.

Also entered into a trade at Binance for Vechain yesterday during that slide downward. Just waiting for that one to sell, but should be around $110 revenue as well.

Looking to jump into some pairs at Kraken since they have a lot of USD type pairs going on.

Need to study up on Bitmex so I can start shorting LTC as well.

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[NanoDrake]

I dig your strategy @eliquid
After all once you have done your T.A for the day, the BOT can do a much better job time/money wise.
They have been studying an ETF quant bot that is beating the SP500 by a 1,5% and more people are starting to dig that quants and bots will replace traders
I would like to know how can i set up a bot on gdax too, nothing too crazy but something that goes like "when this goes up by x% sell, when it goes down by Y%, buy" make small gains daily, they will compound

 

[steelandchrome]

Did a small trade again today.

Im finding I need to expand out if I want to trade daily. Waiting for the best entry can take time on 1 coin.

Im sure I can do better, it will just take some time to get the nerves up.

I went in at 45 LTC @ $207 and 5 LTC @ $206.01

Sold all 50 @ 208.99 for a profit of $104.45

Been working on my own little bot coding it up and integrating into Gdax and Binance so I don't have to hunt these small trades myself.

I'm going to let the bot do the work hunting it down and executing the trades.

That will remove a lot of "emotion" and trigger finger accidents. It will also let me trade without having to watch the screen all day ( even with alerts ) and while I sleep. Just going to set it to small gains and safe settings.

.

What are the settings you are running on your bot? My brother has tried coding a few settings tied to BTC/ETH and it works either great or poorly and not really consistent. Haven't looked at LTC for the bot yet but might work better on BTC or ETH/USD as you are trading...

Sent from my SM-G935V using Tapatalk

 

[eliquid]

What are the settings you are running on your bot? My brother has tried coding a few settings tied to BTC/ETH and it works either great or poorly and not really consistent. Haven't looked at LTC for the bot yet but might work better on BTC or ETH/USD as you are trading...

Sent from my SM-G935V using Tapatalk

I'm always tweaking but largely the bot right now works as a "early warning" alert system for me.

This is what it does right now... it's just a CMD line PHP script that every 30 seconds tells me what is going on with various coins so i don't have to hunt things down myself.

So if I am wanting opportunities to trade, I don't have to look at 100 coins myself in TradingView, I just have my bot tell me which coins fit specifics I am looking for.

A low RSI is one of those specifics, but that is just 1 example. I am looking for tons of other things too. However, this example today was on LTC hitting a low RSI at this moment on gDax. Normally I am looking for "combinations" hitting before I enter a trade.

Every 30 seconds it brings me updates. I'll have it coded to trade for me in a bit though. Right now it just alerts me and I check it myself by hand to ensure a good trade or not based on what it tells me.

I'm working on it today to just alert me via SMS/Email on more specific combination of events so I don't have to have it running on my screen and me noticing it while I work.

.

 

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[eliquid]

This is another example.

Its also a RSI alert, but combined with Stoch creating a custom combo alert.

Some alerts are 2 combination, some are 4+.

 

[eliquid]

Entered into a new trade just now, bought 90 LTC at 198.56

I had a lower price and for some reason gDax didn't fill it. Pretty frustrating, but nothing I can do.

 

[eliquid]

and minutes later Im out for now.

$84 made.

I could have stayed in longer, but I think its gonna hit a new bottom in a few minutes so I can catch that wave too.

 

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[eliquid]

Been a while on the updates.

I kept up with the $50 here and $100 there. I thought it was too boring to really post about it here honestly.

I mean, I won't get to $500k at that rate.

One change I am making today is moving away from 5min and 1hr. The recent false bottoms/lows really stressed me out. I'd find what looked like a good pivot from low and the market would dip even lower as soon as I bought and fall another double digits, leaving me having to hold the bag or average down on another buy that would dip too.

I hadn't accounted for that and in prior periods there were not a lot of that going on.

So I am moving up to at least 4hr view and I might go up from that. I noticed that the "true bottom/pivot" with at least the indicators proved to be more accurate in this "slide" we are going through when I looked at 4hr over shorter time frames.

Maybe in an upward trend I can go back to 1hr, but for now I am moving higher up in time scale.

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[eliquid]

Wanted to give an update -

I've been doing a lot of research and study. Not enough to give me paralysis by analysis, but just soaking it all in.

Some good sources of info I have been absorbing:

https://chatwithtraders.com/ - watching their youtube interviews
Eat Sleep Profit - watching their youtube channel
Bullish Bears
Warrior Trading

I haven't traded much the last week. I've took the time to really comprehend everything I am learning to make a trading strategy. Meaning, more of one compared to the one I had before.

I missed out on trades on purpose. Learning to get the emotion out is key.

I have to learn to be ok with missing a good trade. I also have to learn to be ok with being a bad trade and exiting.

Sometimes you have to force yourself into things that are uncomfortable, so you can get use to it.

Im thinking I might put some of the money I have into stocks and divide what I am doing between crypto and stocks.

.