Thank you @asaj for the lesson and Home Work Task. Below are the attempts:

OPEN A DEMO ACCOUNT ON ANY TRADING BROKER AND SELECT FIVE CRYPTOCURRENCY PAIRS

For this demo transaction, I will be making use of paper trading in trading view. Paper trading can also be referred to as simulated trading, using paper trading affords users the opportunity to trade with fake money, you can use this money to practice buying and selling on the crypto network, this helps you to be familiar with the way transactions are made using a live account, which at a long run minimize the probability of you running at a loss due to lack of understanding of the market. After logging into paper trading, you will be granted $100,000 as your start up fund and this can be rest at any time.

The chart of the paper trading has the buy and sells button, you can purchase any trading security. Using paper trade is quite an excellent idea as it helps you to practice the act of buying and selling without doing trial and error with real money.

Below are the following ways by which you can make transactions using the paper trading in trading view:

i. First, you must download the trading view app on your mobile phone using your phones app store or if you are making use of your PC, you can visit their website https://www.tradingview.com

ii. Looking at the chart of the token you selected you will notice the buy and sell option at the top of your screen

iii. To the bottom of the chart as highlighted in the image below, you will see the paper trading tab, click on connect to start using the paper trading in trading view

iv. After connecting, you are fully set to start using paper trading to make demo transactions

v. To place the buy and sell order click on the order panel at the right hand pane of your chart screen

vi. You can set your take profit, stop loss and quantity, you can then place your buy and sell orders.

CREATING A MARKET ENTRY AND EXIT STRATEGY

To be able to create an entry and exit strategy, it is expedient that we make use of an indicator,I will be making use of the Exponential Moving Average which in short is EMA, the EMA is actually one of the basic technical analysis indicators that are of a great importance to the cryptocurrency trader, it is used to determine that value of a token. It is used for evaluating the trend of the crypto market.

For this demo to create an entry and exit strategy, I will be making use of the EMA 50 and 100 EMA.

Below are the necessities to perform a buy transaction:

i. To be able to buy the price of the asset must be above the 50 and 100 EMA

ii. Before you can buy, it should be in the over sold zone.

Below are the necessities to perform a sell transaction:

i. To be able to buy the price of the asset must be below the 50 and 100 EMA

ii. Before you can buy, it should be in the over sold zone.

USE THE SIGNALS OF THE COMMODITY CHANNEL INDEX (CCI) TO BUY AND SELL THE COINS YOU HAVE SELECTED

The coin I bought was BTCPERP, and the following conditions below are my results:

i. The value of the commodity channel index (CCI) I got is -150

ii. Its support was from the 50EMA

iii.Its stop loss was below the 200 EMA

DECLARE YOUR PROFIT OR LOSS

Talking about profit and loss, from the image above in the previous sub-topic, I will be out lining my entry price, the price at my exit and also what my stop loss was.

1. My entry price was 17116.0

2. My price at exit was 40639.6

3. The stop loss was at 14684.5

From my entry point to the exit point, I was able to make a profit of $23523.6 from a single trade.

EXPLAIN YOUR TRADE MANAGEMENT TECHNIQUE

Below are some of the techniques I implore when trading cryptocurrencies:

POSITION SIZING: this entails not using all your capital for a trade, it is advice able to trade with an acceptable amount, this will ensure that peradventure anything goes wrong in the trade, you have an amount of your capital to fall back on. So instead of using my entire capital in a trade, I prefer to go for say 10% of my capital so that what ever happens I can still have a soft landing.

RISK/REWARD RATIO: this is also an important technique I implore in my transactions, I only enter into a trade when I see that the risk / reward ratios are positive.

To calculate the risk / reward ratio I simply make use of this formula:

=[Target - Entry]/ [Entry - Stop loss]

When you have a 1:1 ratio then it is a break even, when the ratio is 1:2 then that trade is actually a great trade and when the ratio is 1:3 we can refer to it as a perfect trade. But once the ratio is less than 1:1, it becomes negative and it is advisable not to trade then.

CONCLUSION

Setting up a demo account is a necessity for those who want to venture into the crypto trade market, it is said that the mother of learning is repetition, practice makes perfect, set up a demo account, make sure to carry out several trades using the demo account, familiarize yourself with the market structure and market trends, if these things are put in place, it is no doubt that you would become a successful trader.

The demo account is very helpful when it comes to learning how to trade with any negative financial side effects, that notwithstanding, a demo account does not take the place of a live account, so you need to pay attention to developing your trading skills which will qualify you to become a successful trader, to be successful you must be disciplined with funds, avoid negative trading psychology in your trading.

Thank you for reading my post.

Cc: @steemcurator02