My systematic trading process (step by step)

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Lecture description

You will now have a look at my systematic trading process. You can copy this process at any given time and use it for yourself. 

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English [Auto] In this video they can talk with you about my systematic trading process and what they can do with you first of all are going to have a look at the top down view and they're not what we're going to have a look at the bottom up for you. So first of all what exactly is a top down view what exactly is a bottom up view. Now a top down views so from basically the top to the bottom we first of all look at the market in general and then we focus down. And then the other one is the bottom absolutely First of all look at the initial investment. Even at the chart of the initial investment and then we go up from that and judge the market. So first of all let's talk about the top down approach now. First of all I do is I like to define the sector and the sector for me is for instance all the coins that I'm trading with Bitcoin all coins that I'm trading with Ethereal oil all coins and trading with Manero also XOM are. And then of course all coins that I'm trading with US dollar. So these are four sectors. First of all want to define which kind of sector I want to go in. Now of course you can also for instance define across sectors where you say all right I'm going to only invest in a certain type for instance of cryptocurrency let's say cryptocurrency that is connected with a community such for instance as a steam or FBD both cryptocurrency is use on the platform. For instance Steimle dot com or D2 or sound. These are all communities where you can for instance blog and get paid make music and get paid off for instance on a platform where you can post videos and get paid for those videos. So these are for instance cryptocurrency that are connected to a community. You could also for instance set a overall set up that you could say all right the sector that I want to invest in is cryptocurrency that are connected with an actual community or cryptocurrency that are connected to games or cryptocurrency that are connected to something. So first of all you want to define a broad sector you look at the sector. You make a sector analysis you find everything out about that sector and then afterwards what you do is you establish a systematic process the bottom up process inside that sector. So first of all you analyze the sector you decide for a sector and then you go into the sector and look at all of these crypto currencies inside that sector and you have a systematic process for for instance saying all right this is a cryptocurrency that I want to invest in. All right. This is a corporate currency. They don't want to invest in. So you want to have a systematic process inside the sector in order to judge whether a cryptocurrency is going to go up or down. So you want to basically identify investment opportunities then afterwards. And this is now step number three. You want to diversify your investment with one or two investment focuses. So for instance when you go into a certain sector let's say we go with only the crypto currencies in the BTC sectors or crypto currencies that I can purchase with Bitcoin were then going to do is I'm going to have a look at all of these cryptocurrency is you know everything connected to Bitcoin for instance if the price of bitcoin is going down what exactly is going to happen to these crypto currencies. Is there a certain cryptocurrency that is very closely connected to bitcoin. What exactly are the implementations of the current coin going down might actually be an opportunity for certain other crypto currencies to go up. So first of all I analyze the sector I decide all right I'm going to invest in the BTC sector. So all crypto currencies that you can buy with a bitcoin. And then what I do is I look at all of these different crypto currencies inside that sector and I say right this is the one that I want to invest in. Or no this is not the one that I want to invest in and I always like to invest in multiple cryptocurrency because diversification in my mind helps but you should to a certain degree. Also of course said focus's so if yours is the make process right this one could go up. You might want to invest some money. But if you're a systematic process. Right. This is a cryptocurrency that might actually break out that mentally go up by a thousand percent or so like that in the next couple of weeks couple of months. You want to invest a larger sum than that. So basically what you do is you set a trading focus you focus your investments on a certain coin on a certain cryptocurrency. Now then we want to have a look at the bottom up view which is then basically from the chart up to the market. The first thing that you want to do is you want to do a technical analysis. So you want to have a look at the charts you want to draw lines. Where exactly is the trend going. Don't worry learn all of that you're in this course you want to for instance also look at moving averages at Fibonacci levels and you know all the tools that are basically there. And and one thing before I actually start with that. Don't turn it into a science. You know you're not a surgeon you're not a scientist but a certain you know a certain amount of the actual technical analysis might help you to figure out which kind of investment you want to invest in. But the technical analysis is quite important especially with cryptocurrency. Where exactly could an investment go. And when we do a technical analysis we need to differentiate between a short term and a long term investment. So we daytraders for instance that trade let's say in a time window of just a couple of minutes couple of hours to let's say a week. That in my mind is people who really do short term trading day trading. Of course in all the turmoil 24 hours which in my mind is only noise especially with crypto currencies a lot of things are noise. You know to be honest it is very difficult to actually say all right. Is this cryptocurrency going to go up or down. But when you do day trading you first of all of course once you have a look at the chart. So what exactly does the charts say the candlesticks are going up or down. What exactly is happening right now especially when you want to sell right now and perhaps want to sell in 10 minutes and you're just waiting for the cryptocurrency to go up. But you of course also want to have a look at certain lines inside the cryptocurrency get moving averages and so on and so on now but when you are for instance a day trade when you really trade you know in in the timeframe of a couple of hours you also of course want to have a look at the buys and sells. So how many people are buying. How many people are selling into more. Bye bye bye bye bye. You see the more likely it is that the cryptocurrency is actually going to go up. And I think personally you should at that point invest as well. So if you can see for a long time consistently buy buy buy buy buy. You want to buy. Well if there's consistently sell sell sell sell sell. You want to basically of course sell the crypto currency. So this is why I find that a half where daytraders. But then when you want to develop a long term trading strategy where you want to do is you want to of course look at the overall at the overall development in that cryptocurrency. So for instance if it goes down the last hour but it went up let's say for the last couple of months and of course that makes sense to go with a wider trend and say. Right. Because it went up for such a long time to actually also invest in it because you know it might perhaps actually go up even more but perhaps it will go down in the next hour but it will maybe go up within the next month again as well. So the second step that you want to take on your bottom up process is you first of all want to have a look at news and future developments. So what exactly is happening around that. Cryptocurrency right now is there for instance a certain platform that is now working with this cryptocurrency is there perhaps a certain technology that could be powered by this cryptocurrency for instance. I would always watch Bitcoin and ethereal development and especially right now rebel and dash. These are both cryptocurrency that I personally think will be used in the future for certain technologies and if for instance there is a coin connected to a certain technology it is very likely because more and more people are going to enter the system because they use the technology and that the cryptocurrency is going to go up. For instance one of the platforms that I'm personally looking at right now the theme of dot com which is a platform for people to block and earn money through blogging and the more people join that network the more powerful the network. And of course also the cryptocurrency become. So it's quite likely that this cryptocurrency might actually go up. And right now I think the most traded currency most trade cryptocurrency in the world. So that should be a sign for you to say all right. There might actually be something happening. Well actually you know invest in that cryptocurrency. So you want to have a look at news and future developments where and how could this cryptocurrency be used. Does it make sense to implement it and do certain technologies and also of course will this technology hurt the currency or will actually help the currency. For instance when governments are shifting to certain crypto currencies and they use a cryptocurrency and they try to regulate it. This could actually hurt the market this can actually hurt the chart on the cryptocurrency and the price is probably not going to go up it's actually going to go down. So then the third one is the technology behind it. So it's ticker cryptocurrency a sophisticated cryptocurrency. What exactly do cryptocurrency experts say. Now of course it is very difficult especially right now to find a real expert in crypto currencies or it's at least in the block chain technology. And for instance I'm very good friends with many people who are you know some of the biggest people in the world concerning crypto currencies for instance with pennies founder Julian Hosp. who interviewed me awhile back. His stock is now worth more than 500 million dollars. Actually hopefully our Maybe very soon a billion dollars and for instance we exchanged some information. I you know try to get in contact with as many cryptocurrency expert experts that are not believable as possible because in the end no one really knows where crypto currencies are going. Is the market going to collapse at a certain point. Is it a huge bubble. We do not really know. I personally think that there is of course a certain bubble in the market. Nevertheless cryptocurrency and the Black Block change technology is not going to go away. It's an amazing technology that more people are going to use in the future. So what I'm always looking at is of course the technology is at a cryptocurrency that will survive in the long term or will go down after people hyped and you know people just thought you know I need to invest in it. And then of course number for people and communities so weak secondly is behind the cryptocurrency. For instance there's this one platform with Kinect where many people were very skeptical about an hour or two and it turned out to be you know maybe a scam and the person who set up it connect basically said Right I'm going to give you 1 percent on your investment on daily basis. And the platform itself made more than a billion dollars. And then the people disappeared behind that. So you're always on the look out for us of course who exactly is managing that platform. Who exactly is managing the cryptocurrency who came up with the idea of that certain cryptocurrency who is in that company. If these are people that seem kind of shady and you find that they have a bad track record then perhaps you don't want to invest in them or at least you don't want to make long term investments because the people behind a cryptocurrency matter. And then of course the community is there a huge community behind a certain cryptocurrency and to be honest again I personally think that the best community in the world concerning crypto currencies is behind the platform theme. It's behind cryptocurrency steam and SPDM. So this in my mind is an amazing investment opportunity. Now of course there are better opportunities even most of these opportunities nevertheless are in the short term. If you want to make long term investments you need to have a look at this systematic process. First of all want to do a technical analysis. When you do a long term investment a long term technical analysis. So where exactly is the graph going that afterwards you will have a look at news and future developments. So what exactly is being talked about right now and where could this currency go. Then of course the technology behind it. Is this a sophisticated cryptocurrency. And where exactly is this cryptocurrency going to be applied very soon. Is it going to be regulated or not. And then of course Number four is people and community who is behind that. Cryptocurrency do they have a bad proven track record. If so will this hurt the cryptocurrency and also of course you know is the trackwork of bad enough for you to not invest or is there perhaps something like you know this person has been caught drunk driving you know that doesn't necessarily mean that the cryptocurrency is bad. This person could be a genius and could have come up with the most sophisticate cryptocurrency in the world. So you really want to just put an object of let's say a framework around it and say all right are these people trustworthy or are these people shady or not shouldn't invest in the script of currency and this will then help you to make a sophisticated trading decision. So a sophisticated investment decision. So right those are your first video. Thank you so so much for watching and we'll see each other in the next one.