AMA Trading Sharing Session with Bitget Top Elite Copy Trader Joel Straight: Summary

On September 10, 2021. Bitget held an AMA Trading Sharing Session with one of our Top Elite Copy Trader at Bitget English Community TG. Here are the summary of the questions and answers !

Introduction Questions

Q1: Could you introduce yourself and share some of your trading experience with the Community?

A: My name is Joel Straight, and I’ve been involved with crypto since 2013, when I bought my first bitcoin. I was intrigued by the technology and what I thought it could become. I had traded some stocks in 2010–2011, but didn’t really know what I was doing. Crypto introduced me to exchanges and I saw a huge opportunity for someone with my personality type to dramatically grow my holdings by learning some simple techniques.

In the summer of 2014, I started taking my education seriously and began learning the basics of trading. I spent a lot of time losing on short term trades, what I attributed to as my “tuition” to learn these skills. With each loss came a lesson and a chance for improvement on the next trade.

I studied tons of different strategy types before settling on strategies that worked for me and developing my own style. BitGet has been a great place for me to stretch myself and put into practice the years that I’ve put into trading. The community has been really helpful in explaining the software and working with the admin to get support as I go.

Q2: For beginner traders, what are some of the things that they should learn first ?

A: I would put my focus in 2 very specific areas.

#1 — Basic technical chart analysis!

This is so important to be able to make an educated, and bias limited decision, on where you think the chart is going, up or down, and to what degree.

Basic technical analysis is super simple, and very fast to do once you get the hang of it, yet it remains to be one of the most overlooked skills out there. For most charting software out there including BitGet, you do the work once and it stays there until you delete it.

Basic tech analysis consists of simply charting historic support and resistance levels. These levels can be charted on a short, medium, and long term basis, depending on your trading strategy.

All we do is look for levels that reveal themselves on the chart where we saw the price drop and then bounce back up again off that low. On the highs, we’re looking for it to reach that point of resistance and then pullback multiple times.

Its so easy to do, so important, and so overlooked. Take the 5 minutes or less to do this and you’ll make more educated decisions when developing your trading plan.

#2 — Risk Management

Now I know you’ve heard this one a 1000 times, and let me be the 1001th time!

Managing your risk is everything when it comes to profitability. If you win 9/10 trades, but the one you lost on loses more than those other 9 trades, you’re still an unprofitable trader, regardless of your accuracy.

Managing risk can be simple in theory and difficult in practice because this is more than just a strategy, its psychology. To manage risk, your mental game needs to be strong and that means being able to accept a loss quickly, even if it is painful. Its part of the game.

This means, you cut your losers quick.

This also means you take profit along the way to protect your profits against market fluctuations and sometimes violent pullbacks.

Using tools like stop losses can help you take yourself out of it and stick to your trading plan if you don’t trust yourself or can’t be there to cut it. When I use stop losses myself, I tend to use trailing stop losses so that my stop moves up as the price goes up.

However you decide to manage risk,, make a plan for how much you’re willing to lose on your next trade, and cut it if it gets there unless you have truly valid reasons for holding through that pullback, and are certain you’re not convincing yourself of your own bias.

Q3: What is the best product feature that you like about the Bitget platform?

A: I would have to say the copy trading aspect is a very unique feature that I haven’t seen anywhere else. The fact that I can both trade for other and have expert traders grow my profits for me is truly astounding. It’s like we get to participate or be the head of our own personal hedge funds.

I love it and I love the opportunity to participate in copy trading.

Further, having access to a desktop application is a luxury that most exchanges still have yet to offer, even after some being around for nearly a decade.

So I’m grateful that I can have access on any device, no matter what, so long as I have an internet connection.

Q4: Any advice that you wish to give especially to the new traders in our community?

A: For the new traders, take it slow! Don’t buy into the hype of crazy trades making tens of thousands of dollars, and you can do it too if you just follow these X number of steps.

Take your time to learn technical analysis, strategies, and understand the asset/security you’re trading and why its moving.

Also practice! BitGet offers a trading simulator can be used to help you develop your strategies and test them against real market conditions. Utilize the tools you have available to master your craft!

And lastly, treat this like a business and approach it with an air of professionalism and desire to be the best that you can possibly be at trading in all of its many elements. You’re playing Chess, not checkers.

Q5: Can you share with the community about your swing trade strategy?

A: Typically, I stay in trades for 5 minutes or less.

I focus on a few strategies that work for me, and I believe its important to have at least 2–3 strategies so that you can adapt to just about any market condition.

As with all strategies and indicators, note that these are just 1 factor in trading and are only there to help you make trading decisions. No indicator is 100% accurate and relying on indicators too much will eventually lead to losses. .

Having said that, the strategies I focus on are:

12/26/35 EMA Crossover — Strategy #1

This strategy involves using 3 primary indicators. I use the 12, 26, and 35 Exponential Moving Averages, or EMA. Each indicator tracks the assets/securities ,movement over a given time period, giving more weight to the movement in the last 24 hours.

So the 12 EMA is tracking 12 days of movement, the 26EMA is 26 days, and the 35EMA is 35 days.

For this strategy, we’re watching the arrangement of the indicators, and when each of those indicators crossover the other.

Each EMA tells us a story of what’s happening.

When the 26, represented by the white line crosses over the 12 (light blue), we see a drop occur

When the 35 (dark blue), crosses over the 26 (white), this is indicating a period of consolidation, which could result in upward momentum.

And finally, when the 12 (light blue) crosses over both ht 12 and the 35, this is our entry point and indicator of upward momentum

Here’s how the full move looks in the big picture

We can see that the 26 (white) crossed over first, indicating the drop.

Shortly after, the 35 (dark blue) crossed over the 26 (white), indicating consolidation.

Followed by the 12 (light blue) crossing over all others, showing our upward momentum.

This strategy is super useful for going both long and short.

Some notes about this strategy.

#1 — I only take trades which are ABOVE the VWAP, indicated by the purple line. The VWAP is an indicator of sentiment and lets us know if the general market is viewing this as bullish or bearish. While this sttrategy still works below the VWAP, we see more consistent follow through and less false breakouts when we are above the VWAP.

#2 — Volume is hugely important to this and any other trading strategy because if there isn’t enough volume there will be less conviction in the moves.

Next up, I want to talk about 2 other strategies that I use pretty consistently

The VWAP Bounce — Strategy #2

The VWAP Bounce is a simple strategy that I find to be very beginner friendly.

This one follows a very simple pattern using the VWAP indicator (purple). Big picture, it looks like this

We can see tat the charts pops up thru the VWAP, then back down to test it, then back up, and back down for another test. After the 2nd test is where we see our entry points. This is what we’re watching:

We see after the 2nd test there, we have 2 great entry points after that. The first one is a bit more speculative, with the 2nd entry right after that 1 red candle, commonly referred to as a 1 minute pullback. I personally view this second entry point as being a better entry point since we have confirmation of the bounce already, even though you are buying slightly higher.

This is an awesome, easy to recognize strategy that works a large majority of the time.. Its a perfect strategy for beginners since there are very few moving parts to this trade strategy.

Again, as with all strategies and indicators, nothing is 100% reliable and sometimes these don’t work out. Be sure to use good risk management to protect your account and take profit along the way.

Lastly, we have chart pattern strategies that I focus on

Specifically the 1 Minute Pullback — Strategy #3

In our last example of the VWAP Bounce, the second entry point we saw was also a 1 Minute Pullback chart pattern.

This pattern, which I often use as a scalp move, is a super fast and simple entry and exit. We would look to get in right after the 1 minute when the candle afterward breaks the high of the red candle. Entry and exit look like this:

The reason why I exit this position quickly is because we’ll often see a pullback right after. Typically, after we see a 1 Min Pullback setup, we see 2 more pushes upward, before we get pullback and consolidation. So there is typically more meat on the bone.

The chart pattern setup often looks like this after a 1 Min Pullback, with entry and exit points along the way.

Note,:

I personally DO NOT trade after 3 movements upward.

While the asset/security may go higher and put in even a 4th or 5th move, I don’t trade it since a very large percentage of the time, the asset/security is extended after the 3rd move and requires a pullback and consolidation period before making its next move.

Twitter Questions

Q1: Support and resistance are common in crypto trading but many people use it and there are still many who are trapped in false breakouts, and this often happens because the crypto market is very volatile, so how do you avoid this in your opinion?

A: First things first, you’re never trapped. You may need to bail and take the loss. Minimizing losses is an important skill. 2nd, note that crypto and all markets are volatile and carry with them inherent risk, so make sure you aren’t risking anything you can’t afford to lose.

Now that that is out of the way, there is a lot you can do to identify if a support and resistance level is going to hold .

  1. Determine your trade plan prior to entering a position.
  2. How long do you plan to hold this position?
  3. Where are you going to get in?
  4. Where are you going to take profit?
  5. Where will you bail if things don’t go your way?
  6. I use other indicators, past my own technical analysis to interpret volume and sentiment
  7. Wait for the best Setups that fit your strategies, and have something else going for it besides just support and resistance

Q2: How do you anticipate a drastic change in the BTC price like September 7 ago, to minimize losses when open positions?

A: This one is a toughy because its practically impossible to time the market. This is where your trade plan comes into play.

In my previous answer, I laid out a set of questions to ask yourself before you take a trade.

  1. Determine your trade plan prior to entering a position.
  2. How long do you plan to hold this position?
  3. Where are you going to get in?
  4. Where are you going to take profit?
  5. Where will you bail if things don’t go your way?

Further, the use of stop losses in this case would be very helpful in protecting your account from big losses.

Remember that Risk Management is one, if not the most, important skill that any trader can develop.

Q3: How can you read the breakout in 1 minute timeframe? isn’t the candle on the 1 minute timeframe very difficult to read especially when the trading volume is small? and a lot of manipulation in it.. can you give us some tips?

A: From someone who uses the 1 min chart almost exclusively, I don’t believe there is a lot of manipulation in it. Just people and institutions taking profit along the way.

For me, learning to read the 1 minute chart had a lot to do with learning chart pattern s that are specific to 1 minute breakouts.

Specifically, I focused on learning the 1 Min Pullback, and the ABCD pattern, which is a consolidation pattern.

I would take some time to learn chart patterns. There are tons of YouTube videos and blog posts that talk about these patterns.

Additionally, for 1 minute patterns, your strategy should be focused on short trades, Typically, you would use the 1 min chart for scalping, not enormous breakouts that last for long periods of time. I’m usually in and out of a trade within 5 minutes

Now if scalping is your intention, the 1 min chart works great. For longer term trades, use longer term charts.

Also, when trading volume is low, I DO NOT TRADE. Volume is probably the single most important indicator in whether or not price movement and support/resistance levels will be respected.

I often find myself during a trading session saying “without volume, there is not trade.”

Q4: If you use a 1 minute breakout pattern then where is your stop loss? because it is very difficult to determine stoploss in such a small timeframe.

A: For myself, I don’t personally use the stop loss tool when I’m trading 1 minute breakouts. I set what I call a “Mental Stop” which is influenced by the chart patterns developing in front of me.

Typically, my mental stop is about 3% below my entry point, and unless I have compelling evidence from several indicators that the dip is very temporary, I will just take the loss and move right on the next trade.

My mental stop on 1 minute is from years of watching 1 min chart patterns, which I described when I was discussing my trading strategies. Further, when trading the 1 minute chart, I’m watching for those 3 chart patterns setup that I also indicated in my 1 Min Pullback strategy.

Q5: What do you think are the qualities that make a good Trader?What was the best trade you have ever made? What was the riskiest trading decision you have ever made?What strategies do you use to evaluate risk?plz share Ur idea sir ..

A: I believe every trader needs to posses

  • Patience
  • Passion for learning your craft
  • Desire to grow consistently over rapidly
  • Maintain a growth mindset

Stoicism and Emotional Control ++++ Super Important!!

Checkout the book Meditation by Marcus Aurelius to help develop your emotional control

Its available for free all over the internet

Trade with a purpose

Why are you showing up to the market daily? If its for profit, identify exactly what your intention is to do with those profits. What change will that make in your life?

  • Focus on trading within your experience level. If you’re a newbie, learn and get great at 1 specific strategy, as you grow, and learn more, your profits will grow as well.
  • Slow growth is better than no growth or haphazard growth

What was the best trade you have ever made?

As I have been buying BTC since 2013, and trading it as I went, I had quite a few great trades on it. But I did purchase BTC at $5k before the huge run up and sold after we past the $25k point last winter. That was probably my best trade overall. But I have had several trades that were day trades that earned me multiple $$s per share/coin.

Some of those were my most profitable trades.

What I consider to be my best trades are the ones that I take where i follow my trade plan EXACTLY and it works out just how I planned.

What was the riskiest trading decision you have ever made?

The decision to stay out the markets for a period time was, in my opinion a huge loss.

But also changing my trade plan midway through my trade to hold it over night has costed me hundreds of dollars before when I could have gotten out only losing a couple of bucks by just cutting the loss.

Also, in crypto, trading pump coins costed me a thousands of dollars in 2017. Which is why now I stick to coins that have been around for a while and are actively being developed and traded with real fundamentals and technology behind them.

What strategies do you use to evaluate risk?plz share Ur idea sir ..

To evaluate risk, I use Support and Resistance levels, that are mapped out on a 24 hour period, since I’m trading short intervals.

I use the VWAP to help determine sentiment, and with crypto, I take news into account for long term holds. I ask myself what the narrative is for that particular crypto and how is the market receiving that news.

Live QNA

Q1: Which are your favorite coins to trade?

A: My favs are ETH, XTZ, and BTC, ADA + a few others.

Q2: How do you see the BTC’s current position? According to your opinion, BTC will go Up or Down?

A: I think ultimately BTC will go up in the long run. For now we are in a correction and I think that’s normal.

Q3: How we should trade in this highly volatile market?

A: Trade lightly, keep your stops tight and TAKE PROFIT! Don’t try to diamond hands it.

Q4: According to the trade in low time frames, what leverage do you use?

A: I typically don’t use much leverage, but when I do its on trades I am committed to.

Q5: Your next BTC outlook?

A: My outlook on BTC is that I believe it will eventually hit $100kbut I believe in the tech of many other cryptos out there.

Q6: Sir what do you think , will we see again BTC around below 35k? And how can we know which coin will be pumping in next 24hours ? Plz share your knowledge!

A: I think $45k is a support level, so if we don’t hold that, I think we’ll see a drop down to about $40k, If we bounce off that $45k level, then I think we’ll see a move back up to $50k.

Q7: What is your biggest profits and loss so far?

A: Biggest profits are around $1300 on a single trade, since I trade small, and biggest loss was about $700, but again I keep it tight most of the time.

Q8: Do you want to share to the community any of your social media so that they can follow?

A: The best place for people to follow me is on my website joelstraight.com. It has the best way to contact me directly and stay up to date on my YouTube channel which is coming soon

That is the end of our summary :) Do note that Bitget is still recruiting copy traders worldwide, so we welcome all good and experienced traders to join us to get MASSIVE REWARDS!

For more information about the benefits of becoming Bitget’s copy trader, kindly check out this article: https://bitgetglobal.medium.com/bitget-is-officially-recruiting-copy-traders-worldwide-341e25af13b5

Thank you for your constant support!
Bitget Team

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Bitget was established in 2018 and is located in Singapore, it’s a global leading cryptocurrency derivatives exchange and ranks top 5 worldwide.

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