Cryptotrading: Achieving 300% Profit with a 90% Win-Rate Using This Trading Strategy

This is how I made over 300% profit on one trade using a very simple trading strategy

Trading in the cryptocurrency market can be highly profitable, but it also comes with its fair share of risks. As a trader, it is essential to have a well-defined strategy that can help you navigate through the volatility and make informed decisions. In this article, I will share with you a simple yet effective trading strategy that helped me make over 300% profit on a single trade.

Step 1: Head to TradingView.com and search for Smart Money Concepts by Lux Algo

To begin, you need to visit TradingView.com, a popular platform for technical analysis and charting. Once you are on the website, navigate to the indicators section and search for “Smart Money Concepts” by Lux Algo. It is important to note that I am in no way affiliated with Lux Algo, but I have found their indicator to be highly effective in my trading journey.

Step 2: Adjust the settings for the Smart Money Concepts indicator

Once you have added the Smart Money Concepts indicator to your chart, you will need to adjust the settings to optimize its performance. Scroll down to find the “Fair Value Gaps” section and enable the “Auto Threshold” option. Additionally, extend the Fair Value Gap (FVG) by five. These settings will help highlight the fair value gaps on your chart, which are crucial for identifying potential trading opportunities.

Step 3: Identify the top of the fair value gap and wait for price action to revisit that point

Now that you have the fair value gaps highlighted on your chart, it’s time to look for trading opportunities. Identify the top of the fair value gap using a horizontal ray. This point represents a significant level of resistance. Wait patiently for the price action to revisit this point, indicating a potential breakout or change in character.

Step 4: Enter the trade with a sensible risk-reward ratio

Once you see a change in character, such as a breakout to the upside, it’s time to enter the trade. However, it is crucial to assess the risk-reward ratio before executing the trade. Ensure that the potential profit outweighs the potential loss, and set appropriate stop-loss and take-profit levels. This step is essential to protect your capital and maximize your profits.

Conclusion

By following this simple trading strategy using the Smart Money Concepts indicator, I was able to make over 300% profit on a single trade. It is important to note that trading in the cryptocurrency market involves risks, and past performance is not indicative of future results. However, having a well-defined strategy and using effective tools can significantly increase your chances of success.

Frequently Asked Questions (FAQs)

Q: Is this trading strategy suitable for beginners?

A: Yes, this trading strategy can be suitable for beginners as it relies on a simple concept of identifying fair value gaps and waiting for price action to revisit those levels. However, it is always recommended to practice on a demo account and gain a thorough understanding of the strategy before risking real money.

Q: Can I use this strategy for trading other financial instruments?

A: While this strategy was specifically designed for the cryptocurrency market, the concept of fair value gaps can be applied to other financial instruments as well. However, it is important to adapt the strategy to the specific characteristics of the instrument you are trading.

Q: Are there any additional indicators or tools that can complement this strategy?

A: While the Smart Money Concepts indicator is highly effective on its own, you can consider using additional indicators or tools to further enhance your trading decisions. Popular options include trend indicators, volume analysis tools, and support/resistance levels.

Q: How often should I expect trading opportunities using this strategy?

A: The frequency of trading opportunities will depend on the market conditions and the specific cryptocurrency you are trading. Some periods may offer more opportunities, while others may be relatively quiet. It is important to exercise patience and wait for high-probability setups rather than forcing trades.

Q: Can I automate this trading strategy using a trading bot?

A: Yes, it is possible to automate this trading strategy using a trading bot that supports the Smart Money Concepts indicator. However, it is crucial to thoroughly test and optimize the bot’s settings before deploying it with real funds. Additionally, regular monitoring and adjustments may be necessary to adapt to changing market conditions.