Rublix “Blueprint” demonstration for Bitcoin Trading October 17 to 22nd, 2017
Before building a house, an architect considers many factors and consults with his client to define a plan for building the house. Then a Blueprint is created to communicate the specifications with the builder. The house is built step by step and the both the progress and the costs are monitored closely.
What is a Rublix “Blueprint”?
Before making a trade or an investment, a trader considers multiple factors to define the most likely scenarios where the price of an instrument is likely to move. A plan is defined for entering and exiting a trade. To communicate with the trader’s followers, a Rublix “Blueprint” is created in the form of specifications for a smart contract. The data is captured on the Blockchain. As the price of the instrument changes step by step over time both the progress and decline in price are monitored closely. As events and price levels occur, Oracles return data to the Blueprint and determine if the scenario predicted in the Blueprint is proven true or false.
Bitcoin Scenario as of October 18 (See Chart at the end of this post)
After the October 17/18th, 2017 correction in Bitcoin from $ 5,798 to $ 5,201 (10 %). The trader sees the price pivot at $ 5,201 and return to the uptrend. The trader observes the blue ADX Line is falling (Direction strength down is weakening) and the MACD indicator rolls up and crosses the zero line ( an uptrend is signaled). The trader also notices that Bitcoin found support multiple times at $ 5,500 earlier in October and anticipates that $ 5,500 will be resistance when it returns to this level.
The trader’s plan
If Bitcoin can break and accept that previous support level of $ 5,500 the trader anticipates it will run to the previous high of $ 5,825. A Blueprint with the trading specifications is created:
1) A Buy Stop order is placed on October18 for 10 BTC/USD at $5,550 — (confirmed break of $ 5,500)
A conditional Sell Stop Loss order will be placed to sell 10 BTC/USD at $ 5,440, if the trade triggers.
(The total Risk on the trade is $ 5,550 — $5,440 = $ 110 x 10 = $1,100 (2 %)
2) Also, If the trade triggers at $ 5,500, a Sell Limit profit taking order will be placed to Sell 5 BTC/USD at $5,825 (All time high)
(The total reward on the 5 BTC/USD (1/2 the trade) is
$ 5,825 — $ 5,500 = $ 275 x 5 = $ 1,375 (2.5 % gain)
3) If the Sell Limit order triggers at $5,825, a Buy Stop Loss Order will be placed at $ 5,750 for the remaining 5 BTC/USD.
A real time Oracle monitors the price movement. When a particular value is reached an event triggers. The primary task of the Oracle is to provide these values to the smart contract in a secure and accurate manner.
How the trade and the Blueprint played out from October 18 to October 22nd
1) Event: On Wednesday, October 18, 2017 price breaks $ 5,550.
The Buy Stop order is triggered for 10 BTC/USD at $5,550
2) Event: On Friday, October 19, 2017 price breaks $ 5,825 (all time high)
The Sell Limit profit taking order triggers to sell 5 BTC/USD at $5,825
The total gain is $ 275 x 5 = $ 1,375 (2.5 % gain)
The Blueprint is recorded as “True”
The trader anticipates that the previous high of $ 5,825 will provide support if Bitcoin retraces to that level.
A Sell Stop Loss Order is placed at $ 5,750 for the remaining 5 BTC/USD.
The trader is holding 5 Bitcoin at 5:00 PM on Friday, October 20th at $ 6,029
An unrealized gain of $ 479 x 5 = $ 2,395 (an additional 4.3 % gain is in the account)
3) Event: On Sunday, October 22, 2017 price drops below $ 5,750
The Sell Stop Loss Order is triggered at $ 5,750
The total gain is $ 200 x 5 = $ 1,000 (1.8 % gain) The trader is flat
Total gain on the trade is
$ 275 x 5 = $ 1,375, a 2.5 % gain
$ 200 x 5 = $ 1,000, a 1.8 % gain
Total = $ 2,375, a 4.3 % gain
Total Risk was $ 1,100
Reward to Risk Ratio is 2.2 to 1
BTC/USD 60 Minute Chart October 15 to 23rd, 2017
