QFL’s last video:
- [Follow up video: "My thoughts about Daytrading and Account Building trades"]
created some questions in the Discord account building channel which I tried to answer as below & in hope QFL agrees...
Answer to @Protog, hope @Merfe can agree/advise.
It all depends on the definition of Daytrading; which usualy is based on growth by compound-trading risking increased amounts of whatever coins that happen to ’look’ promising that day. Usually supported by TA, Newsrooms or whatever.
The average Daytrader risks his entire compounded capital every day as in a casino, since nobody knows or can guarantee what the coins will do.
Versus the way I read QFL AB’s-advise is to pick a coin, recognise the whiffy-bandwidth, repeatly buy that coin at the low end with a fixed same amount of yr base-currency (f.i. USDT).
And when it grows to the high end of the bandwith just take out the value of your original buy amount in your base-currency and leave the profit in there as ‘free coins’ in that coin.
Stay with that coin and set your (layered) buy orders at the low end again for the same amount in your base-currency and repeat and repeat and repeat...
That way you never risk more then your base-investment and accumulate an amount of ‘free coins’ that will soon break even with the original invested amount..
When a FF occurs or when it has grown enough to your liking you just take the original amount you started with out and add that to your base-currency.
After which you just can continue trading in that coin in the same way but then in reality it is free. No risk. You are no longer risking your start-investment in that coin. And you can add your profits to your base-currency whenever you like.
If the coin changes character, no more whiffy-ness or something, just either leave yr profit in there for later or take it out and find another coin.
It’ll become ‘your’ coin before you know it.
As in the course of this way of trading you accumulate free coins and never invest more then your base account until you recover it, this allows for both ‘layered’ buy- and sell-amounts covering the entire range of both the high-and low-ends of your bandwidth. Including some extremes on both ends in case of FF’s.
Or depending on the profits you can raise your base-amount gradually. For free that is. But keep your individual orders relatively small.
You can share that coin-info with others because all that will do is increase the volume if everybody follows the same method. Which eventually they will.
As anyone can simply understand the basic difference between this no risk QFL-method and whatever your definition of Daytrading is, I think we owe to be more then grateful to QFL to point this principle out to us foc...
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Well whatever the style of trading is, it is obvious that his method has no risk.
He even indicated how to find whiffy-ness; by looking at a 4hr chart to begin with.
h
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@ObiWanSatoshi when you determine your bandwidth at a coin by drawing two horizontal lines, you can count the hours between high and low. which usually is another fixed pattern.
this determines your average cycle time, indeed you are not trading all the time... but can do other things while waiting as you know when it is due and are sure it’ll get there.
and if not; your risking just your begin-amount or better still; your free coins
you should write down the details of what you see as a bandwith and pattern and check and adjust them as you go along. and/or use alarms as QFL does.
h