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How I Made 1200% on One Single Trade Using a Simple Moving Average Strategy

Trading in the cryptocurrency market can be both exciting and profitable. However, it’s important to have a solid strategy in place to maximize your chances of success. In this article, I will share with you the simple moving average strategy that helped me achieve a staggering 1200% return on one single trade. By following these steps and using the right indicators, you too can potentially increase your profits.

Step 1: Setting Up Your Chart

To begin, you’ll need to access a chart platform such as TradingView. Once you’re on the platform, type in “moving averages” in the search bar. Look for the indicator called “Triple Moving Average” by AdventTrading and add it to your chart. Next, search for the indicator “Exponential Moving Average” (EMA) and add it as well.

Step 2: Adjusting the Indicator Settings

Now that you have the indicators added to your chart, it’s time to adjust the settings to optimize your strategy. Start by clicking on the settings of the Triple Moving Average indicator. Change the lengths of the moving averages to 13, 21, and 55. Additionally, you can change the colors of the lines for simplicity.

Next, go to the settings of the Exponential Moving Average indicator and change the length to 8. Keep the color of this line as blue for easy identification.

The Simple Moving Average Strategy

The strategy is straightforward and involves monitoring four lines on your chart: the 8, 13, 21, and 55 moving averages. The key is to buy when the 55 moving average (the red line) crosses to the bottom. For example, when you see the 55 moving average cross below the other three lines, it’s a signal to buy.

Once you’ve entered a trade, you should hold onto your position until the 55 moving average crosses all the way to the top. This indicates a potential trend reversal, and it’s a signal to sell your position. For instance, when the 55 moving average crosses above the other three lines, it’s time to sell.

It’s important to note that if the 55 moving average only crosses one line, you should not sell. Wait for it to cross all the way to the top before considering an exit.

While this strategy can be applied to any time frame, higher time frames tend to provide more reliable signals. It’s always a good idea to analyze multiple time frames to confirm the strength of the signal before entering a trade.

How I Achieved a 1200% Return

Now that you understand the strategy, let me share how I achieved a remarkable 1200% return on one single trade using this simple moving average strategy. By patiently waiting for the 55 moving average to cross to the bottom and then holding onto my position until it crossed all the way to the top, I was able to capture a significant price movement in the cryptocurrency I was trading.

It’s important to remember that not every trade will yield such impressive returns. However, by consistently applying this strategy and exercising discipline, you can increase your chances of finding profitable opportunities in the market.

Frequently Asked Questions

1. Can this strategy be applied to any cryptocurrency?

Yes, this strategy can be applied to any cryptocurrency. The moving averages help identify trends and potential reversals, regardless of the specific cryptocurrency you are trading.

2. Do I need to constantly monitor the chart?

No, you don’t need to constantly monitor the chart. Once you have entered a trade, you can set stop-loss and take-profit levels to automatically manage your position. However, it’s always a good idea to keep an eye on the market to ensure there are no significant changes that may require adjusting your strategy.

3. Can I use this strategy on other financial markets?

While this strategy was developed for the cryptocurrency market, it can also be applied to other financial markets such as stocks, forex, or commodities. However, it’s important to consider the specific characteristics and volatility of each market before implementing the strategy.

4. How long should I hold onto my position?

The duration of your position will depend on the strength of the trend and the time frame you are trading. It’s recommended to hold onto your position until the 55 moving average crosses all the way to the top, indicating a potential trend reversal. However, you can also consider taking partial profits along the way if the price movement is significant.

Conclusion

The simple moving average strategy outlined in this article has the potential to generate significant returns in the cryptocurrency market. By patiently waiting for the right signals and exercising discipline, you can increase your chances of success. Remember to always conduct thorough research and analysis before entering any trade, and consider using risk management tools to protect your capital. Happy trading!