AMA Trading Sharing Session with Bitget Top Elite Copy Trader XForceGlobal: Summary
On August 27, 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 Traders! Thank you for giving me the chance to introduce myself to the community! It is an honor to take part in this ‘AMA’ Session. I am a one person operation running under the pseudonym, “XForceGlobal”. I am a full time educator within the realm of technical analysis focusing primarily on the strategies of Risk Management, Elliott Wave Principle, and Breakout Strategies. I am reputable for being a trusted educator on one of the top platforms, TradingView, garnering over 10,000 followers, with over 200 articles based on all the variables listed above. As a full time educator, I also am versed not only as an investor, but also as a swing trader -, with over 13 years of proven experience. In recent years, I have also been able to achieve my CFA and now working towards my CMA, that will help further prove my existence within the space!
Q2: For beginner traders, what are some of the things that they should learn first？
A: The biggest thing that I advocate for new traders is to make sure they understand the concept of risk management before anything else. Understanding risk management is like trying to understand your finances before spending your hard earned capital. For example, you wouldn’t spend $1,000 on a piece of jewelry before asking your wife/husband, would you? The probability of her/him killing you is high. That’s the same thing for trading. If you are dipping your toes into the waters of the markets, then you MUST understand the concept of risk management. Secondly, you’re not smarter than the market. You haven’t thought of something that others haven’t already considered. This type of thinking leads you to make decisions before you have technical confirmation that you’re correct.
Q3: What is the best product feature that you like about the Bitget platform?
A: Copy trading, hands down. Make sure that you check how many days the anticipated trader you are looking into. Don’t just look at their P/L earnings. It takes time to build a reputable winning ratio that is proven to the public.
Q4: Any advice that you wish to give especially to the new traders in our community?
A: You will lose. That’s just a part of the game. But the major thing is to make sure you have more winnings than losses! That’s with anything in life. Treat trading like a game. You don’t want to lose the game, and the game doesn’t want you to lose either. The end goal is to win. Make sure you respect the market conditions, otherwise the markets will punish you, regardless. As long as you respect the market and act as a follower and not a leader, you will be rewarded by the markets. It’s like with Poker, the house always wins. Always. However, you can sponge money off of the house as long as you treat it like a game with strategies, not emotions.
Q5: Can you share with the community about your swing trade strategy?
A: There are so many aspects to swing trading when it comes to the proper strategy. The best strategy that I believe is the most effective is to use lagging indicators. To put it simply, there is no ‘one size fits all’ when it comes to the proper strategy; however, if you use indicators that are used by most traders, then market psychology will suggest that there will be a higher probability of how the markets will react on the certain indicator or strategy you are using — especially if everyone is using it. Lagging and leading indicators will have an effect on how you’ll interpret trends — both on positions and in the broad averages — as well as the type of opportunities that pop up in your research. Choose wisely and will build a solid foundation for success not only in speculation, but proven results. In general, technical indicators fit into five categories: trend, mean reversion, relative strength, volume, and momentum. These are the ones I believe how you should categorize your trading regime. Most novices follow the herd (also known as ‘sheeps’) when building their first trading strategy, grabbing a bunch of indicators and stuffing as many as possible in one window. This “more is better” approach short circuits signal production because it looks at the market from too many angles at once. Don’t be an architect, rather, be an engineer. It’s ironic because indicators work best when they are simplified — cutting through the noise and providing usable output on-trend, momentum, and timing.
Twitter Questions
A: First of all, if you haven’t already, check out my TradingView page where I include a complete Elliott Waves guide on how to fully understand the theory and practical application of it within the markets. Here is the link: https://www.tradingview.com/u/XForceGlobal/ There are a plethora of ways to identify why waves consist of only 5 waves within a trend, but first, we need to understand what the Elliott Wave Theory is. Back in 1930’s (during/before the Great Depression), a person named Ralph Nelson Elliott discovered that price action displayed on charts, instead of behaving in a somewhat chaotic manner, had actually an intrinsic narrative attached. This means that Elliott himself saw the same patterns formed in repetitive cycles. These cycles were based on the emotions of investors (what is now commonly known as, ‘Market Psychology) in upward and downward swings. These movements were divided into what he called “waves”.
According to his observations, a trending market moved in a five and three wave pattern, where the first five waves, which were labeled as “motive waves”, moved in the direction of the larger trend. Following the completion of the five waves in one direction, a larger corrective move takes place in three consecutive waves. Letters are used instead of numbers to track this correction. The three waves forming the “corrective” pattern (labelled a,b and c) are also sometimes called the “threes”. Now to properly calculate these waves, takes a lot of studying and preparation. The best way to identify the waves is to break it down by each wave and understand the different possible counts within those waves. Once those become second nature, you can start applying them within the markets!
A: This is a great question. There will never be a perfect way to know if breakouts will occur or not; however, if you are able to create a series of bullish/bearish evidence of a breakout, it can increase your probability of making a perfectly executed trade. The keyphrase here is, “Increasing your probability”. For example, if you take the time to acknowledge the most commonly used patterns, such as the rising wedge, falling wedge, ascending triangle, and furthermore, these usually often breakout with higher probabilities as they are the most commonly used breakout patterns.
You can find more information on my article on, “The Most Commonly Used Bullish Patterns”, for example: https://www.tradingview.com/chart/BTCUSD/J9i4sPFN-The-Most-Used-and-Profitable-Chart-Pat terns-Bullish-Patterns/ Merely breaking out is usually not enough of a confirmation. Another common attachment to breakout strategies is to make sure you understand the concept of ‘retesting’. Once a breakout occurs, if the price action were to retest a major trendline support or resistance, this can become even a higher probability of a breakout working, effectively making it a strong executed trade.
A: Risk management comes in various sizes and forms. Risk management is effectively another way of saying, “preserving your capital”. The most important thing in trading is not how much you can make, but focusing on how you can preserve your capital by ALSO making profits. It is the process of identifying and assessing threats to your capital and earned profits. These threats could stem from a wide variety of sources and the importance of a risk management plan before these potential risks or events occur, you can protect your money. A robust risk management plan will help a trader establish procedures to avoid any major losses and learn how to cope with the results, even if it is a losing trade. The ability to understand and control risk enables traders to be more CONFIDENT in their trading decisions, especially in leveraged products.
Trading is risky, however with a proper balance of risk reward potential, you can become very profitable, even if you have a series of losses. It is better to know why you lost a trade, rather than not knowing why you won a trade. Most risk management tools are based on trade size (capital), percentages of risk reward, stop loss, take profit, and understanding of risk reward ratios. Trading any market is risky, especially when using margined products, it is therefore extremely important to implement a solid trading risk management strategy. If you are curious on how to use risk management to your advantage, I also have a series of articles based on risk management! Links below:
1) How to calculate Risk Reward Ratio (RRR): https://www.tradingview.com/chart/BTCUSD/qQl1tL48-A-Guide-to-Risk-Reward-Ratio-R RR-How-To-Calculate-and-Setup/
2) How to Use the Long/Short Positioning Tool: https://www.tradingview.com/chart/BTCUSD/vk3BkeaZ-How-to-Use-the-Long-Short-Posi tioning-Tool-Full-Breakdown/
A: The most common approaches for a swing trader usually is determined in four timeframes for a swing trader, but can be debatable. My personal favorites are the 1 hour, 4 hour, daily, and weekly. All of these timeframes have their advantages. Weekly: This is a good way to identify the overall market. The weekly timeframe suggests the overall picture and can spot any important price areas ahead of time on a macro scale. This should be the first time frame you open when browsing the right ticker for a cryptocurrency or stock. Daily: This is more of a strategic approach in regards to positioning. The daily timeframe can also be a great way to position yourself for a “buy — in” and gives any important levels ahead for the week. 4 Hour: This is where the execution starts. Once the timeframes starts in the ‘hour’ timeframes, it gets riskier.
The 4H is still a great way to identify the overall ‘trade scenario’ and is a great hybrid of the smaller and larger timeframes to start using indicators. This can give you the bigger picture for understanding potential profits and good areas to place stop losses. 1 Hour: This is where you wait for all your trade signals to align. This is the meat and potatoes of where you will identify the actual execution of your trades. I have a full article on this as well: https://www.tradingview.com/chart/BTCUSD/p3oQi6eU-The-Most-Recommended-Timeframes-t o-Trade-On-Top-Down-Analysis/
A: Day trading is usually ruled by professionals and takes years of experience to make profit from. Scalping is ruled by people who can calculate an edge in a fraction of a second/minute. Swing trading, the “market noise” from both of the above is greatly reduced, and therefore it is much easier to make a consistent profit within the markets. I personally know two multi-millionaires traders that make their money from swing trading. There are only a handful, if at all, that actually makes millions scalping or day trading. If I could learn trading again, I would skip the countless hours it takes to get good enough to scalp or day trade, and focus on the patient art of swing trading — which is why XForceGlobal now focuses on that specific art .
I suggest using only the daily chart, building an algorithm (a set of rules that you follow no matter what) and backtesting it until you know it wins, and then forward testing on a strategy for 6 months or so, before risking actual money. Sounds painstaking, but if I had gone that route I wouldn’t have lost near the amount of money that I had in the beginning
Live QNA
Q1: Have you tried trading any other market before besides crypto ? Stocks and forex ? Which one u like best?
A: Yes. I was an avid trader of equities (stocks) and Forex markets for 13 years. I still do trade them and I also operate a community for stocks and Forex. For now, my main focus is on cryptocurrencies! I have been trading cryptocurrencies for over 5 years with proven experience :)
Q2: How do u trade in a ranging market?
A: You don’t. You accumulate. Big difference. Trading in a ranging market is extremely dangerous; however, it is possible to find common patterns within a ranging market by using Elliott Waves. That is why Elliott Wave is so powerful!
Q3: How long did u trade on Bitget?
A: I traded for over one year on BitGet.
Q4: What’s the best type of trading in this market wave Long trading or short ?
A: Long term trading is always best as I have stated in my AMA session above. You always want to work with the macro and then move towards the micro timeframes.
Q5: Does big leverage mean big profits?
A: Higher leverage does not mean anything. It gives you access to higher amount of capital — that is all. What’s important is the amount of total capital you have in your funded account. This is where many people get horribly destroyed by the markets. They assume that higher leverage means you can make more money. This is not the case. You must take into account for your liquidation!
Q6: What’s your biggest ROI?
A: One of my recent biggest ROI’s was in $YFI, where I have profited over 9000% on a short from the local tops around the $40,000 region, then shorted it to around $8,000.
Q7: Could you share your Social Media links for our community to follow ?
A: Social Media Links:
TradingView | https://www.tradingview.com/u/XForceG...
Telegram | https://t.me/xforceglobal
Discord | https://discord.gg/NnP4dWvfQk
Twitter | https://twitter.com/XForceGlobal
Youtube | https://www.youtube.com/c/xforceglobal
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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