Steemit Crypto Academy – Season 3 - Week 4 - Post for @asaj

Question 1 - Open a demo account on any trading broker and select five cryptocurrency pairs

To setup paper trading on tradingview, first go to https://www.tradingview.com and signup for an account through the regular signup process.

After signing up to tradingview, click on the up arrow at the bottom of the page to toggle the pane.

Click on the trading panel tab and on the choose your broker section, hover on the paper trading button and click on connect.

Click on connect again to complete the paper trading account. Done, the paper account has been created and connected to tradingview.

After that, it is time to choose the trading pair to begin the paper trading.

Click on the cryptocurrency pair at the top left and search for any cryptocurrency pair of your choice.

After that, it is time to explore the trading interface of paper trading.

To access the trading interface of paper trading, click on the red or blue price button inside the chart window.

Clicking the blue price button brings up the buy side interface and clicking the red price button brings up the sell side interface.

Buy side interface

Sell side interface

The five cryptocurrency pairs I selected are;

• AAVE/USDT
• BNB/USDT
• ETH/USDT
• LTC/USDT
• UNI/USDT

Question 2 - Create a market entry and exit strategy

When it comes to creating a market entry and exit strategy, I like to make use of a few indicators such as 50 and 100 EMA and MACD to determine the best entry and exit points. For this, I like to combine both the MACD indicator and the 10 and 20 EMA indicator. Both the MACD and EMA are easy to use indicators that provide a very good insight on what is happening in the market and the market movements.

Entry criteria

For my entry, I always look out for the MACD signal. The MACD line must cross above the signal line, it is an indicator to enter the market. I will look at the 10 and 20 EMA to get confirmation. The price of the asset must be above the EMA lines and the lower length EMA should above the higher length EMA, it is a good buy signal.

Exit criteria

For my exit, the signal line must cross above the MACD line, it is an indicator to exit the market. I will also look at the 10 and 20 EMA to get confirmation. The price of the asset is below the EMA lines and the lower length EMA goes below the higher length EMA, it is a confirmation to exit the market.

AAVE/USDT

BNB/USDT

ETH/USDT

LTC/USDT

UNI/USDT

Question 3 - Use the signals of the Commodity Channel Index (CCI) to buy and sell the coins you have selected

For this demonstration, I will be using the commodity channel index (CCI) indicator and also the EMA to buy and sell the selected coins;

AAVE/USDT Chart

On the AAVE/USDT chart on 15mins timeframe, the CCI line was at the -116.80 mark which can be a good indication to buy. I placed a buy order at 286.99. I set my stop loss at 286.13 and take profit at 289.09.

BNB/USDT Chart

On the BNB/USDT chart on 15mins timeframe, the CCI line was at the -126.22 mark. I placed a buy order at 300.8979. I set my stop loss at 300.1799 and take profit at 302.0611.

ETH/USDT Chart

On the ETH/USDT chart on 15mins timeframe, the CCI line was at the -177-83 mark. I placed a buy order at 2147.07. I set my stop loss at 2142.88 and take profit at 2163.31.

LTC/USDT Chart

On the LTC/USDT chart on 15mins timeframe, the CCI line was at -125.65. I placed a buy order at 124.17. I set my stop loss at 123.98 and take profit at 124.75.

UNI/USDT Chart

On the LTC/USDT chart on 15mins timeframe, the CCI line was at –99.68. I placed a buy order at 18.128. I set my stop loss at 18.063 and take profit at 18.256.

Question 4 - Declare your profit or loss

I made a total of 5 trades based on the selected cryptocurrency pairs. The aim was to be on the profit side, however, in the world of cryptocurrency, it can be very difficult to predict the outcome of the market. So far, all the trades were at a loss and all thanks to my stoploss which is a key risk management strategies, I was able to prevent losing all the investment capital.

Question 5 - Explain your trade management technique

Stoploss (SL) and Take Profit (TP)

For me, my trade management technique was to utilize stopIoss and take profit. The essence of the stop loss was to ensure that I prevent losing all the trading capital, and also, it is important to take profit in a highly volatile cryptocurrency market. The take profit levels were set so that when the price hits the take profit marks, my sell order would trigger to make profit from the trade. My stop loss level is set below the buy price. I like to set it below the previous close and the take profit is set above the buy price.

Conclusion

When it comes to technical analysis and trading any cryptocurrency asset, the Commodity Channel Index (CCI) has proven to be a very reliable and poweful indicator that can help traders determine the best entry and exit points. Combining the CCI with other indicators like EMA can be very powerful in making the best entry and exit decisions. Also, in technical analysis, Paper trading play an important role in helping traders strategize before venturing into an actual trade. Paper trading is a great way to study and practice different trading techniques and ideas before using real funds to trade. Paper trading helps prevent traders from losing real money while learning and practicing different trading techniques and strategies. Also, new and inexperienced traders can also use paper trading to practice until they are comfortable enough to trade with a live trading account.

@asaj