AMA Trading Sharing Session with Bitget Top Elite Copy Trader Kartik: Summary
On September 3, 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: Hello Fellow Traders, I am Kartik & I have been trading Crypto Futures & Stocks for the past 2–3 years. I usually swing trade based on pattern breakouts, EMA & candlestick patterns. Some of my favourite breakout trading setups include symmetrical triangles, downsloping trendline, inverse head and shoulder and rising or falling wedge. I generally use 4X leverage on altcoins (never get too greedy!) & partially exit my position on different resistance.
Q2: For beginner traders, what are some of the things that they should learn first ？
A: Here are some of the things I focused on when starting out :
1. Finding key support and resistance and making valid trendlines.
2. Before taking any trades, backtest your strategy first on whichever time frame you plan to follow it. You can also test out the strategy using a demo account.
3. Having a good risk to reward ratio is really important. You will be profitable even with less winning trades. Avoid over leverage.
4. Reading books on Technical analysis always helps :)
Q3: What is the best product feature that you like about the Bitget platform?
A: I recently started using Bitget exchange and it has some very cool features like copy trading. We can easily follow trades of experienced traders and make profit from it. I also liked the Simulation trading feature which can be used to practice & improve in trading or even test a strategy.
Q4: Any advice that you wish to give especially to the new traders in our community?
A: Good advice would be to never FOMO in any coin. If it has pumped too much, then let it go! Wait for the next opportunity. Try to control emotions & be patient while trading. Avoid revenge trading at all costs, instead take a break and chill out.
Never use more than 3–5% of your portfolio on a single trade, and avoid taking high leverage.
Q5:Can you share with the community about your swing trade strategy?
I prefer to trade only breakouts of different patterns or trendlines.
Here’s one of the downsloping trendline breakout swing trade setup in a 4 hour time frame (works better in bigger T.F.). So in this pic the downsloping trendline is acting as a resistance and has pushed the price down multiple times.
Finally the price breaks above the trendline and tests it as support. I would not long it yet (as sometimes it could be a fakeout), I will wait for the next candle to be green and then enter a long position with stoploss a little below the trendline & ride it till the next major resistance level and close my position there :)
I also use the SNRC Flip strategy, on a 4 hour Time Frame which basically means when resistance turns into support and vice versa. Here’s an example.
After a huge consolidation happened, the price eventually broke out and flipped resistance into support within a 4 hours Time Frame. I would enter a long position at that time with stoploss a little below the resistance (keeping some room as sometimes wicks come to grab liquidity) and then exit my position on the next resistance level. It is another example of breakout trade.
For some scalping I also prefer to long from support in consolidation zones or when the price is range bound.
Twitter Questions
A: I will always wait for the retest to happen, & then only enter the long/short position on the next candle after the retest, as sometimes there’s a possibility of a fakeout. It’s always better to use a bigger T.F. (4 Hour or Daily) to trade breakouts.
Q2: What EMA settings are you using? and how to use EMA to make swing trade setup?
A: Here’s a EMA strategy that I usually follow on smaller time frames like 1 hour or 15 minutes for sometimes scalping and even swing trading.
This strategy is known as color coded 4 EMA strategy. So the EMA we would be using is 8, 13, 21, 55 (which are Fibonacci numbers) and set the color blue, green, yellow and red respectively.
Firstly what I do is look at the bigger Time Frame like daily to identify if the market is in uptrend or downtrend, after that I only take trades of long if its in uptrend and vice versa. As you can see in my trade setup, whenever all the 4 EMA Crosses over (Remember all 4 should cross over) then is the time to take a position depending upon the trend in the bigger time frame and if the EMA crossover is acting as support or resistance.
In the above chart the crossover happened and EMA is acting as support, so I would take a long position at the candle when crossover happened with stop loss below the 4 EMA’s when they crossed. This gives me a very good Risk to Reward ratio as you can also see in the chart. I would exit the position when the crossover happened again or at any resistance based on my time frames.
In this chart the 2nd crossover was a fake out and it went above the EMA again, but still it’s always better to close the position on the next EMA crossover. It has a very good winning ratio, but always DYOR and backtest the timeframe you want to follow it on. Enjoy :)
A: I totally agree that risk management is the key to becoming a good trader. I generally aim for a good risk to reward ratio on all my trades and always use less leverage while taking any trades.
For taking profit, I first identify key resistances/supports (Mostly 3) and slowly exit my positions on all those levels. After hitting my first target I generally move my stoploss to my entry or use trailing stoploss, so that even if the price drops there’s nothing to lose. Cut losses quickly and be patient with the winning trade. I also use the Fibonacci tool to find points to take profit on.
A: For swing trading, I prefer 4 hour or Daily Time Frame, I have had the best success with these time frames.
To choose the best time frame for both scalping/day trading is to backtest your strategy on all the time frames and see which time frame had the best results or win ratio, different strategies work better on different time frames.
I personally have tested both scalping as well as swing trading but I feel swing trading provides better Risk to Reward ratio and some mental peace as you don’t have to constantly monitor the charts. For scalping I think a 15 minute Time Frame is very good
A: Surely, here’s a few things that I look to make sure breakout is real. The first thing to look at is after the breakout the resistance should flip into support during the retest (preferably in 4 hour T.F) . If that doesn’t happen then there’s a high probability that it could be a fakeout. Here’s a pic for you to understand it better -
I also look for increasing volume or volume spike to confirm that the breakout is real. If the price action and candlesticks pattern forming is bullish then it’s also a sign that the breakout is real.
Live QNA
Q1: What is FIBO ?
A: So Fibonacci retracement is a tool to determine, support resistance and target levels, You just have to use swing high and swing low of the pattern & you would have your fibonacci levels, I personally look for retracement to 0.618 level also known as golden pocket.
Q2: Have you tried different markets, stock / forex etc
A: I have tried stock market & trading Gold and silver aswell, but I think crypto is probably one of the best markets to trade due to huge volatility and macro bullishness.
Q3: Which are your favorite coins to trade?
A: I only trade coins that respect the support and resistance levels, I mostly trade BTC & Ethereum. Sometimes I trade alts aswell like Link, Litecoin, Dot, if there’s an event coming or they are on the verge of breakout. Polkadot recently broke out & pumped.
Q4: What is your highest gains and loss ?
A: I had a 400% return on Wrx coin,I also had a 10x gain on a meme coin (don’t know if that counts lol, now I stay away from meme coins) for my biggest loss I have lost 80% of my portfolio when I started out, because I overleveraged. I never did the same mistake again.
Q5 :What is your biggest mistakes when comes to trading ?
A: My biggest mistake would be to not backtest my strategy and directly jump into futures trading with over leverage. That’s the easiest way to burn the porfolio. Always be patient & control your emotions while trading is very important.
Q6: What do you think that is the biggest mistake new traders are facing ?
A: The biggest mistake I see new traders make is FOMO in a coin at ATH, like in case of DOGE & many other coins & not being patient enough with their trades. Also Revenge trading is another mistake that I see lot of new traders make! Should always avoid it & chill out when having a losing streak.
Q7: Can you share me your fund mangement when trading ? How is it divide in ?
A: I use 3–5% of my futures account in every trade, not more than that. I also have long term holdings that I am probably gonna hold for 5 years . And I also keep on trading in spot market with rest of my funds. It’s the safest and best way to trade.
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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