AMA Trading Sharing Session with Bitget Top Elite Copy Trader Owen Karumazondo: Summary
On August 20, 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 BitGet Community, I am Owen Karumazondo a.k.a ‘The Cryptocurrency Magnet’ from the United Kingdom. Firstly, I would like to thank you for this invitation and It is an honour to take part in this AMA Trading Sharing Session. My education and working background stems from Economics, Innovation Management (specialising in Blockchain technology) and experience in Private Equity in Shanghai. I am a Swing Trader with 8 years experience from trading forex, commodities, cryptocurrencies, as well as an avid investor in the cryptocurrency market. I have amassed a wealth of knowledge through experiential learning, and further actively working on simplifying reading and understanding chart movement. As well as trading, I specialise in consulting cryptocurrency investing and one of the founders currently developing the Sovereign Pedagogy’s blockchain education platform.
Q2: For beginner traders, what are some of the things that they should learn first ？
A: Okay, where to start with this one. For beginner traders I believe, handling your emotions is vital to success in the long term. Furthermore to this, understanding key support and resistance, as well as being able to draw them on a chart is very important. Once you are able to do this effectively, you will be able to identify the trend direction (Buy or Sell Market).
As a swing trader, the Daily and 4H Chart are the most important when plotting key support and resistance as they can signal powerful breakouts/breakdowns, reversals, pullbacks and key retracements at which we can look to enter a trade. For example, when the chart is approaching key Support and Resistance on 4H, use lower time frames to better the understand price action, If in a Buy marketing condition, look for a breakout above resistance and beware of fakeouts before entering and make sure candlesticks are Bullish and if in a Sell market condition look for a breakout below before entering and make sure on 15/30min candlesticks are bearish.
Q3: What is the best product feature that you like about the Bitget platform?
A: I love the copy trader app and is a really unique value proposition that BitGet has over other crypto derivatives exchanges.
Q4: Could you show us your biggest trading wins on Bitget ？(Insert a pic here will do)
A: I’m new to your platform, less than 7 days but here are some of my winnings from the Bitget Futures Platform.
Q5: Any advice that you wish to give especially to the new traders in our community?
A: Do not be disheartened from any losses, it is part of the process, but the most important aspect here is to be able to look back at your trading history, analyse and understand why the trade ended up in a loss e.g this could be to do with your entry point. Be open to wanting to learn more and in the spirit of the Bitget community you want to continuously trade better.
Q6: Can you share with the community about your swing trade strategy?
A: Over the years I have tried and tested various strategies but not one comes close to the Fast EMA and Slow SMA crossover which I use daily to be able to spot trends and potential reversals. Basically, exponential moving averages (EMA) place more weight on recent price action using a mathematical formula. On the other hand, the simple moving averages (SMA) place equal weight on price action. As a short term swing trader, the use of the 13 EMA and 50 SMA on the 4H and more specifically on the 1H Chart enables you to find Buys and Sells in the market. When the 13 EMA Crosses Up touching the 50SMA.
From following this strategy, over 6 days (10th-16th August) there were 3 great buying opportunities with the highest returns per trade from the EMA and SMA crossover and potential gains of 51%. By just catching the move at the crossover you are maximising potential gains as the crossovers happen over 2 to 3 days during this impulsive move. Furthermore additional moving averages can be used in order to identify the type of market you are in. In the Matic Chart above, you can see that Polygon (Matic) is in a Buy market/bullish according to the 200 SMA, with this knowledge you should only look to enter Buys, if you miss the move only look to enter on a retracement.
To simplify this strategy for you guys today here is the winning formula:
- When the 13 EMA crosses down touching the 50 SMA *Look for Sells/Shorts only after they have touched in this market condition. As I mentioned earlier, handling your emotions is an important aspect of trading and once you have confirmation of trend direction it is important not to rush in and execute a trade. Rather it is instrumental to your success when trading cryptocurrencies or any other financial asset to look for Confirmation on the lower time frames first. So that is, once a Buy or Sell signal is identified on the Daily or 4H Chart…the 13 EMA and 50 SMA must touch on the 15m, 30m and 1 hour chart. If you are too late to enter once you have further confirmation from price action in the lower time frame you can utilise the fibonacci retracement tool for potential entry points on the 15/30 min time frame.
- Support and Resistance are key, you should always look to plot these on the Chart first using the Daily and 4H Chart to get trend direction.
- Use RSI or Stochastics to gauge whether the market is in an oversold or overbought condition. Note catching a swing trade from oversold to overbought will enable you to maximise your profit.
- Look at the Price Action on the lower time frames. When analysing the chart on the lower time frame, look for a breakout above resistance if in a Buy market market condition. *Beware of fakeouts before entering make sure candlesticks are Bullish.
- If in a Sell market condition look for a breakout below support before entering and make sure on the 15/30min chart that the candlesticks are bearish.
Once you can back test this strategy, the next step is in understanding and mastering Fibonacci Retracements as assets will often pullback or retrace a percentage of the previous move before reversing. There is quite a lot of information to take in for new traders but maybe in the future we can arrange a more technical AMA with the Bitget Community.
Twitter Questions
A: It is very important to handle your emotions at this stage. Do not rush into a position, rather as a swing trader it is best to have clear analysis which you can use to set a limit order allowing you to make a ‘sniper entry’, the best being at candlesticks wicks as this can guarantee you great returns if placed in the right direction.
A: For breakout confirmation you want to have clear support and resistance and on the lower time frames look for bullish or bearish price action depending on the trend direction identified from the higher time frames. In addition to this I also utilise the Volume Profile Point of Control (POC). The Volume Profile shows you the vertical traded volume on the price and you will see important areas like the VPOC and value area. The key to success is here to interpret the volume in the right way. The market will show you signs of accepted and unaccepted prices.
A: Risk Management is very important in trading and is a key part of continued trading success. It is important to manage your risk and not over leverage. Further, as a swing trader once you have identified a trade, you should always look left of the chart at key support and resistance as well as the fibonacci retracement tool to plot your Stop Loss and Take profit. Using the Fibonacci tool I am able to set my Stop loss and Take profit based on the key fib levels. E.g. Many traders follow the rule that the move up from 38.2% retracement may end at the 138.2% extension line.
A: This has been a result of experience trading from over the years and from that experience I am able to analyse and eye good trading opportunities through a tried and tested strategy mentioned earlier. The Fast EMA and Slow SMA crossover strategy is one which i find very effective. I’d say with practice and understanding of price action you can profit from your trades 78%+. From my experience, when this strategy is used on longer time frames such as the Daily or 4H chart this ‘swing trade strategy’ in cryptocurrencies can bring you some great returns if you are patient and stick to the strategy. I have coded and developed this swing call script on trading view and would love to share this with the community for you guys to better understand how effective this crossover strategy can be.
https://www.tradingview.com/script/z7QFSwbc-Swing-Signal-MA-Crossover-call-buy-sell/
A: Hmmm, how to put this in a simple way. We are in that age where Data is the key driver and is central to socioeconomic activities but not only that but the power of 3, the Internet of things (IOT), Artificial Intelligence (AI) & Blockchain are the key drivers here in this 4th industrial revolution I call the roaring 20s..yes history repeats itself like in the 1920s. What’s more important is that IOT and AI all depend on Data but cannot function efficiently at all without the use of blockchain technology! That is the main driver right there! We are in the right space at the right time…this technology will work hand in hand together to enable a faster, streamlined and more efficient way of transferring data and enabling interactions we thought were impossible with technology to happen, this is the path we are on and that’s the real disruption of blockchain technology.
As well as blockchain technology itself, decentralised finance (Defi), Oracles, NFTs are going to be huge, digital art is not new news anymore, NFTs mean you have the controlling ownership rights let’s say over a piece of art, piece of real estate, piece land,or a piece of intellectual property. Huge opportunity right here! you can basically monetise in a very significant micro payment way which will turn into real £$…intellectual property, social media property, the real estate which will make the new Oil, which is DIGITAL in this fourth industrial revolution powered by A.I, IOT, blockchain and data being central to the core!
We are going through a whole techno-industrialisation to bring about an entirely new system. Digital goods, digital services, NFTs, this technology is the New Oil for this new ‘sustainable economy’ as we move forward to new cross border transfer remittances payments, new central bank models, and even country models. This is what has been happening from an economic financial perspective.
Live QNA
Q1: Do you think which trading method is very useful to beginners? Scalping trading or long term holding method. Which is less risk and as a good trader which indicator will help more to predict the market movement? As a beginner to the scalping method how effective to use 1m timeframe?
A: As a beginner i believe you can be a lot more profitable looking for less trades nd focussing on holding your trade longer so min 2 days, that way you can really learn and understand how the market moves, that incorporated with understanding support and resistance, RSI/stochastics for momentum you should be able to have a good start here as a beginner
Q2: What do you think are the qualities that make a good Trader?
A: There are many good qualities but one which is very important for success is discipline, that means you start to monitor the markets with a more militant view and are continuously working to improve your current skillset as a trader, backtesting can be very effective and when practice you will be slowly building a mental image which will enable you to read the same chart patterns quicker every time.
Q3: How were your first steps in the trading world ?
A: This is a funny one, I actually started out trading by opening a binary options account in the summer of 2013, I have always had an interest in charts and finance as a general studying Economics and Business management for my undergrad
Q4: What is your highest ROI in your 8 years of trading ?
A: Currently have some long trades placed in Matic, Harmony…Matic has already gained 10000% from entry, Harmony should follow suit.
Q5: Do you have videos about your project on YouTube or any other social media ???Thanks
A: Yes more information will be released asap, currently in the development stage. I will be able to share this information especially to your community first before anything! for now you can keep up to date with our sovereign members in the telegram chat.
Q6: What was the riskiest trading decision you have ever made? What happened? What schedule do you have for your trading?
A: Trading large lots without full confirmation. I’m sure you can imagine the end of that one HAHA but you live and learn! I like to trade the Asia session as there is more volatility compared to other market sessions.
Q7: What is the most painful loss and lesson ?
A: In the past I have blown 4 accounts before but I wouldn't do it any different as those lessons have made me a better trader today.
Q8: What leverage can you advise us to base on When trading in this market days?
A: 5–7x if your are completely new to leverage trading.
Q8: How strong is your team ? Many projects starts with good impression & later abandoned the project. What makes your project different than others ??? Please share…
A: Our value proposition relies on the promise that we help the user to become their best selves by the use and application of Sovereign’s educational platform. The user will unlock the necessary skills and knowledge needed to maneuver in a fast paced, high growth potential and novel industry class. This industry has plenty to offer in terms of disrupting the current economic-societal landscape, as blockchain technology supported by Moore’s Law of exponential growth has the power to enable efficiency in the Fourth industrial revolution with Data being the central core, powered by Artificial Technology (A.I) , Blockchain Technology and The Internet Of Things (IOT). This value proposition relies on 5 principles present across Sovereign’s educational platform:
- Profile Personalisation & Goal Oriented
- Performance & Support
- 3.Community & Support Network
- Flexibility & Accessibility
- Professional Advisory: more information will be shared, but for now you can join the group chat to keep up to date with the latest developments and some free gems are given out on a weekly basis
Q9: Do u want to share your social media links with the community ?
A:
Instagram: @Owenkay
Twitter: @CryptoMagnet888
TradingView: https://www.tradingview.com/u/CryptocurrencyMagnet/
TG Group: https://t.me/crypzchamber
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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