Question 1
Give a detailed analysis of BICHI STRATEGY. Starting from introduction, identification of trends, trend reversal in market, entry, and exit from the market, one demo trade, and finally your opinion about this strategy. (Screenshot required). [4 points]
Introduction and Definitions
Bichi Strategy is a trading strategy that can be used by traders to maximize profit from the CryptoCurrency Market. It is the combination of two technical analysis tools which are the Bollinger bands and Ichimoku clouds. BICHI is a short form of Bollinger bands + Ichimoku clouds. This strategy was created by my able prof @utsavsaxena11 and it has shown an accuracy rate of 80% if understood and followed up in the right way. The Bollinger band in the strategy helps in revealing the support and resistance available in the price and gives the moving basis trendline which aids in determining the current trend of the market.
The Ichimoku clouds help in revealing the future price direction in the market. This strategy works accurately when there is a confirmation from both technical analysis tools showing a harmony between them.
This strategy works better in lower timeframes like 1-30mins and requires a lot of patience because you will have to wait for the price to break out of the Ichimoku cloud before you place your trade. You should also make use of the default settings of the 2 technical analysis tools which are the Bollinger band and Ichimoku cloud to get maximum results.
Identification of Trends
As the popular saying that the Trend is your Friend, it is always a good idea that every trader drops their sentiment in the market and rides with the current trend and this is also applicable in this unique strategy. As we already know, we will be talking about how to analyze both the uptrend and downtrend respectively with a screenshot for further description.
Uptrend
The major basis for the identification of trends in this strategy is by first checking whether the basis line of the Bollinger band provides either a support or a resistance. If it provides support for the prices to move up, then an uptrend is suspected. But to further confirm it, you will check out when the prices break out of the Ichimoku cloud. Once this happens then it is a confirmed uptrend.
sourceDowntrend
For the downtrend, the Bollinger band provides resistance for the price to move down. Then for further confirmation, watch out for the price to break out of the Ichimoku cloud downwards. Once this is verified then the downtrend is confirmed.
SourceTrend Reversal in the Market
Trend reversal is a very important part of trading that every good trader should take note of because it will help you to know the appropriate time to take profit and reenter the market as the next trend begins.
Changing trend from downtrend to uptrend
To identify when the market will change from downtrend to uptrend, you use majorly the Bollinger band, you see the market moving in a downtrend then it starts moving sideways and also the market moving sideways will break several points on the Ichimoku cloud indicating a possible trend reversal to the uptrend.
SourceChanging trend from uptrend to downtrend
To identify when the market will change from uptrend to downtrend, you use majorly the Bollinger band basis line, you see clearly the market moving in an uptrend then it starts moving sideways and also the market moving sideways will break several points on the Ichimoku cloud indicating a possible trend reversal to the downtrend.
SourceEntry and Exit from the Market
Buying Trade :
First, we have to check out for uptrend which is signified as price above Bollinger band basis which is the basic line that gives support to the price. When support is given to the price then you wait for the price to Breakout of the Ichimoku cloud, when the price breaks out of the Ichimoku cloud and continues to move up, then take your buy trade on the next candlestick formed. Apply a good risk management system that is your stop loss and take profit and your stop loss point should reach your support basis line.
SourceSelling Trade :
First, we have to check out for a downtrend which is signified as price under the Bollinger band basis which is the basic line that gives resistance to the price. When the resistance is given to the price then you wait for the price to Breakout downwards of the Ichimoku cloud, when the price breaks out of the Ichimoku cloud and continues to move down, then take your sell trade on the next candlestick formed. Apply a good risk to reward ratio (stop loss and take profit) and your stop loss point should reach your resistance basis line.
SourceOne Demo Trade
Source
SourceAfter having studied this strategy, I will say that it's indeed a good and profitable strategy if and when followed duly all the required processes involved. This strategy also has a good risk management system attached to it which makes it profitable and a good bet for traders to make the most out of the market. I will certainly start making use of this awesome strategy and I will also advise fellow traders to use it as well. Thanks, prof @utsavsaxena11 for discovering such a wonderful strategy.
Question 2:
Define briefly Crypto IDX and Altcoins IDX. What is signal prediction trading? Is it legal or ill-legal in your country? (Explain briefly) [2points]
Crypto IDX meaning Cryptocurrency Index is an asset created by the standard rate of four cryptocurrencies which are Bitcoin, Ethereum, Litecoin, and Zcash. It does not only consider the prices of the cryptocurrencies but also their supply and demand values. It can be traded on Binomo broker and it's traded by most traders because of the following advantages like it's available for trade 24 hours 7 days of the week and it also has high volatility which is a great advantage for making a lot of profit as well. To calculate the crypto IDX you have to make use of some software which function by taking an average of the price of the 4 cryptocurrencies.
Altcoins IDX meaning Altcoin index is an asset created by the standards rate of four cryptocurrencies which are Ripple, Ethereum, Litecoin, and Monero. It does not only consider the prices of the cryptocurrencies but also their supply and demand values. It can be traded on Binomo broker and it's traded by most traders because of the following advantages like it's available for trade 24 hours 7 days of the week and it also has high volatility which is a great advantage for making a lot of profit as well. To calculate the altcoin IDX you have to make use of some software which function by taking an average of the price of the 4 cryptocurrencies.
What is signal prediction trading? Is it legal or ill-legal in your country?
Signal Prediction Trading is a type of trading that involves forecasting the future price of an asset at a given time. This model of trading is much like gambling.
You can predict that price will go either in an upward or downward direction and if your prediction is correct then you have made a profit but if it's wrong then it's a loss for you.
For example, if I predict that $steem will go up in 5mins and I stake 10$ to it with a 60% ROI, if it eventually goes up I will make 6$ making me have a total of 16$ now but if it moves downwards that means that I will lose my whole capital.
Signal prediction trading is legal in my country Nigeria because my government is in support of gambling which is backed up by the laws of the country.
Question 3
If you want to create your own penny IDX, then which 4 penny assets will you choose, and what is the reason behind choosing those four assets. Define Penny currencies. (Explain, no screenshot required). [2points]
I will first choose
Steem because of it's use case which Steemit.com is part of them and because of the scarcity of the coin that will soon set in by the coming years due to the rule of powering up 50% of your earnings on Steemit.com. it's the current price is $0.46
Secondly, I will choose Gala because it's a gaming and metaverse token that is the future of the crypto space and it has a great use case as well. It's current price is $0.50
Thirdly, I will choose Chiliz because it's the native token of an exchange that brings fans closer to their favorite teams and clubs worldwide by supporting their fan token. It's current price is $0.315
Fourthly, I will choose Notes because its ecosystem has so many innovations that they are bringing to the blockchain technology which will be relevant in web3.
It's current price is $0.136
Penny Currency is a cryptocurrency below the price of 1$. Examples are iotex, steem, chillz, tron, shiba inu etc.
Coins like this are the future of the crypto market because of the use cases and innovations their developers bring into the market which will be relevant in time to come.
Conclusion
Thank you very much prof for this wonderful and interesting lecture. I have really learnt a lot starting from the BICHI strategy to the crypto IDX to the Altcoin IDX to the Penny currency. I was truly impacted by your lecture. I hope for another interesting topic next time.
Thanks.