Ex trader, who made 880% in 2022, explains his unique strategy.
While billions of dollars are being wiped out, my portfolio grew from $120k to $1M+ in less than a year. Here’s how you can do it too!
“Develop a system, not a goal.”
After acquiring more than two decades of experience trading forex at two major banks, I decided to follow my own rules.
I did not ape into shit/meme coins.
- I only traded $ETH.
I did not use 10x leverage.
- I used NO LEVERAGE, seriously, none.
I did not trade every day.
- I opened just nine trades.
I did not follow a trading bot or copy trading platform.
- They do not have your interests in mind, only their agendas.
I did not invest in NFTs or crypto projects.
- It is not my domain of expertise and probably not yours too.
Trading is about mastering yourself first, so I stuck to my plan without getting emotionally involved.
Zen trading allows you to gross healthy profits. Here’s how I did it:
Become an expert
Sounds logical, right? The number one difference between a profitable trader and a gambler is “expertise.”
Assets are like melodies; charts are like paper music. How do you expect to get used to a few assets behaviors by monitoring dozens of them?
Nowadays, traders lack focus.
I have been trading for decades but have only speculated on a dozen different assets throughout my career.
Since leaving my job five years ago, I focused on these four:
[$ETH/USDT], [$EUR/USD], [$SPX], [QQQ], and [GOLD]
I will never trade anything else. Yes, I may not benefit from tremendous opportunities arising outside of this tiny universe. However, you need to beat your irrational brain and weigh the risk of investing in something you have not mastered.
Trading “opportunities” will lead to failed entries and, more importantly, exits. Leave it; you will not have the edge on these trades.
Long-term, the only thing that matters is your win rate. Focus on mastering a few assets and, most importantly yourself.
Leave day trading to influencers and VERY experienced pro traders.
The odds are that you are neither.
Day trading is costly in fees and infrastructure. It is time-consuming and requires consistent and disciplined analyses of market conditions.
Day trading is also super stressful. Anxiety is a trader’s greatest enemy. You will be prone to making mistakes, which will bias your thinking process.
“Exchanges with the help of influencers are promoting scalping and day trading strategies. They do so because that’s how money is transferred from your pocket to theirs.” — wisechief.eth
All your decisions are to be weighed to maximize your odds of success. Interestingly, only 5% of day traders are profitable compared to 10% of swing traders. While this doesn’t seem like much, it’s twice the chance of turning a profit!
Intelligence is about learning from your mistakes; wisdom is about learning from other people’s mistakes. Be wise. Leave day trading to influencers.
If you are a professional trader, you might want to look at WiseStrat, my trading strategy. Read: The Line — The Most Advanced Trading Strategy
Love what you do! You will be happy to allocate time to macro & fundamentals.
You need to realize that technical and fundamental analysis are best friends.
Understanding the macro economy is the most important part of swing trading. However, to me, it never felt like work.
I have been making macro-predictions for decades. In fact, following macro-events became my passion to the point that I now play prediction games with my kids!
Here is my trading process:
- Ever-evolving macro prediction & sentiment analysis (my “vision”)
- Following the economic calendar and news to adjust my vision (daily)
- Technical indicators point toward my vision
- Technical analysis to get me into a position
Sounds difficult? It’s not! Why? Because we are un-leveraged swing traders! Only a few data points get our interest. Everything else is noise.
A non-exhaustive checklist: Your assets newsfeed, CPI (US Inflation data), Central Bank rate, Unemployment Rate, Consumer Confidence Index, Trade balance, Fear & Greed Index, Unemployment Rate, Consumer Confidence Index, VIX, major indexes (SP500, etc.).
[NOT AFFILIATED] I enjoy reading the finimize newsletter. While I got the premium subscription, the free version still provides a ton of value. I also subscribed to Bloomberg News. I took up the habit of reading their posts every day. They keep me on top of everything at a macro level in less than 15 minutes/per day.
Automation reduces biases and saves you a ton of time.
“The bad news is time flies. The good news is you’re the pilot.” — Michael Altshuler
I keep my charts pretty clean — This has not always been the case, but I eventually realized that data is a double-edged sword. I needed to cut down on them.
In swing trading, support and resistance levels are essentials. We use them to identify price points where the probabilities favor a pause or reversal of a prevailing trend.
S/Rs also help traders catch momentums, enter/exit positions, and make better predictions. I used to draw mine for decades.
While experienced traders don’t need tools to draw them, I developed the Sup/Res indicator by SwingSwiss [a company I just took over]. It’s been sitting on my charts for about a year and saves me a ton of time.
Finally, I decided to bundle my trading experience into one compact tool. I taught myself Pine Script and developed my very own personal strategy.
Why? Because we can’t always be the best version of ourselves.
Looking at all the data I had on my chart was troubling, and even if I mastered them, it was always difficult to squeeze the juice out of them rapidly.
I turned my trading experience into code and analyzed years of charts and patterns to find specific news-related rules. For about a year, I have been constantly updating and tweaking it.
“WiseStrat,” as I call it, analyzes the market automatically as the best version of MYSELF. It prevents me from moving into a position too early and closing out too late. “WiseStrat” does not get distracted!
In a sense, it has surpassed me.
Nowadays, you can learn Pine Script on @Youtube or hire a pro dev on Upwork [NOT AFFILIATED].
About my $ETH strategy.
My strategy can be defined as a “Long-term market-neutral momentum strategy.”
Long-term: On average, trade duration is 58 days. Losing trades are quickly rejected thanks to “WiseStrat” and “Sup/Res” (15 days).
Market-neutral: It has no bias towards long or short positions. I want to profit in any market.
Momentum strategy: It’s just about finding reversals. Simply put, investors buy rising securities and sell them when they look to have peaked (Idem in shorting).
“WiseStrat” finds the opportunities and answers the when (entry/exit) and how (long/short) and reacts to short-term spikes or selloffs.
I took over SwingSwiss. European Union’s top trading setup provider and offer WiseStrat on subscription. You can try it for free Now!
To sum up
- Focus on a few assets, gain expertise
- Love what you do and invest time to understand the macroeconomy
- You don’t need leverage to make REAL money; it’s a utopia. Swing trading will feel like a sunny vacation
- Leave day trading, get the odds on your side
- Simplify your setups; you do not own an Instagram business
- Automate redundant tasks. Life is beautiful. Gain time.
Follow me; I will write about my trading strategy, macro-economy, and crypto angel investing. I will answer questions such as: How to create the perfect TradingView setup for Swing Trading? How to trade on a budget? How to manage your risk?