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SupremacyG opened this issue Jun 28, 2024 · 0 comments
Open

I need help #101

SupremacyG opened this issue Jun 28, 2024 · 0 comments

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@SupremacyG
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Rise/Fall Strategy

1. Setup

  • Timeframe: 5-minute chart
  • Indicators:
    • 5-period Simple Moving Average (SMA)
    • 20-period Simple Moving Average (SMA)
    • 14-period Relative Strength Index (RSI)

2. Entry Signals

  • Buy ("Rise") Signal:

    • The 5-period SMA crosses above the 20-period SMA.
    • The RSI is above 50.
  • Sell ("Fall") Signal:

    • The 5-period SMA crosses below the 20-period SMA.
    • The RSI is below 50.

3. Exit Signals

  • Expiration: Set a fixed expiration time (e.g., 5 minutes) that matches your trading timeframe.
  • Stop-Loss: If applicable, set a stop-loss to limit potential losses.

4. Risk Management

  • Position Sizing: Risk only 1-2% of your account per trade. For a $10 account, this means risking $0.10 to $0.20 per trade.
  • Number of Trades: Limit the number of trades per day to avoid overtrading.

Steps to Implement the Strategy

  1. Identify the Trend:

    • Open a 5-minute chart of the asset you want to trade.
    • Apply the 5-period and 20-period SMAs.
    • Apply the 14-period RSI.
  2. Look for Crossovers:

    • Monitor the moving averages for crossover signals.
    • Confirm the crossover with the RSI indicator.
  3. Place a Trade:

    • Buy ("Rise") Trade: When the 5-period SMA crosses above the 20-period SMA and the RSI is above 50.
    • Sell ("Fall") Trade: When the 5-period SMA crosses below the 20-period SMA and the RSI is below 50.
    • Set the trade amount to $0.10 to $0.20.
  4. Set Expiration:

    • Choose a 5-minute expiration for the trade to match the timeframe of your analysis.
  5. Monitor and Exit:

    • Allow the trade to expire naturally.
    • Monitor the trade and be ready to intervene if necessary (e.g., closing the trade early if it moves significantly against you).

Example Trade

Buy ("Rise") Trade

  • Account Size: $10
  • Risk Per Trade: $0.10 (1% of account)
  • Trade Signal: 5-period SMA crosses above the 20-period SMA, RSI is at 55
  • Trade Execution: Place a "Rise" trade with $0.10
  • Expiration: 5 minutes

Sell ("Fall") Trade

  • Account Size: $10
  • Risk Per Trade: $0.10 (1% of account)
  • Trade Signal: 5-period SMA crosses below the 20-period SMA, RSI is at 45
  • Trade Execution: Place a "Fall" trade with $0.10
  • Expiration: 5 minutes
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