Source
Just when I ended last week being Johnny Big Balls and thinking I had this trading cracked disaster struck and the sum of all fears showed up.
A CRYPTO TOKEN BROKE ITS LONG TERN RESISTANCE.
Everything was going swimmingly with my new rules
- NO LONGS
- NEGATIVE FUNDING RATE ( THE MORE NEGATIVE THE BETTER)
- RSI HOURLY >80 (the higher the better)
- When volume starts dropping pull the trigger with the short.
So as I said last week I went from around $20 to $100 in a short space of time. So I was no over $100 where we could start making real money. GMT started going negative so I was keeping an eye on it. I usually filter by funding rate by the way. Heres an example. Hyperliquid is good because it compares to Binance. Binance have funding rate caps but Hyperliquid don't so there are arbitrage opportunities here if you are into that sort of thing. I do like to see where the funding rate for Binance is at because if it is less than the funding rate on Hyperliquid then it could be an indicator that things are gonna go south and south is my raison d'etre. I love south.
So G M fucking T decided to wake up. Negative funding rate was -2.3. Lovely jubly, anything more gets scary with the funding rate fees as shorts pay longs during negative. RSI was at 86. Nice. And there was this unsustainable green candle. I love when these tokens moon because I like to hop on at the time and ride her down. So the scene was set. I pulled the trigger. A minus 2 funding rate can't get much more negative but loan behold it could and GMT kept climbing. Now I said last week that the stop loss should have been set here but me being me never set one and I lost a quarter of my portfolio in this trade. So it send me spiraling back to 60. I clawed my way back and then was hit with a similar VVV trade. Alt coins were waking up after a long slumber.
My mistake has always been chasing losses like a gambler in crypto so I turned off the laptop. Took a day to see what way the wind was blowing the next morning and started grinding again with my favourites IP, BERA, POLYX , MOVE AND KAITO. After a day I had regained my mojo and by the end of the week I was up to $154. I broke a golden rule and longed a couple of times when I saw a clear trend up but I have to stamp these out of my strategy. The cracks are appearing in my discipline.
I always found whenever I start making large amounts myy trading fails me because I second guess a trade rather than going for it. So I always reach $500 and then don't trade with the same flow. So I have to make sure the rules are abided by.
So after 2 disasters I am still $30 up for the week and brings me up to $144 dollar. Week 3 will be where we fly or drown.
