Bitcoin Day Trading Strategy: Best Bitcoin Trading Strategy For Beginners

The Bitcoin trading strategy consists of a simple to understand trend-following indicator and a technical oscillator which can be loaded onto the highly popular Metatrader 4 trading platform.

This strategy works well for Bitcoin (BTC/USD) scalpers, day traders and swing traders.

It can also be used to trade other cryptocurrency pairs such as Litecoin/Bitcoin (LTC/BTC) and Ethereum/US Dollar (ETH/USD).
Learn below how to buy and sell cryptocurrencies with this simple to understand trading strategy.

Chart Setup

MetaTrader 4 Indicators: rsi_ma_trade_sist_chart.ex4 (Inputs Variable Modified; FastEMA=10, SlowEMA=24. RSIPeriod=42), PUX_CCI.ex4 (default setting)

Preferred Time Frame(s):  1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Cryptocurrencies: Bitcoin (BTC/USD), Litecoin/Bitcoin (LTC/BTC),  Ethereum/USD (ETH/USD), Ethereum/Japanese Yen (ETH/JPY)
Forex Pairs: Any


Buy Trade Example

Fig. 1.0
Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

1. If the lime line of the rsi_ma_trade_sist_chart.ex4 custom indicator crosses the blue line bottom up, while a blue upward pointing arrow forms below price bars as seen on Fig. 1.0, the market sentiment is said to be somewhat bullish i.e. a trigger to buy the stipulated asset (BTC/USD).
2. If the sienna line along with the blue and green vertical bars of the PUX_CCI custom indicator forms above the 0.00 level as shown on Fig. 1.0, price is said to be pushed to the upside, hence a buy signal is said to be in place.

Stop Loss for Buy Entry: Place stop loss below support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions take precedence:

1. If the lime line of the rsi_ma_trade_sist_chart.ex4 custom indicator crosses its blue line in a top downward manner as seen on Fig. 1.0, price is said to be taking a turn away from its earlier bullish stance, hence an exit or take profit is advised.
2. If the sienna line of the PUX_CCI custom indicator breaks below the 0.00 level during a buy signal (refer to Fig. 1.0), bulls power is said to weaning, hence an exit or take profit is recommended.

Sell Entry Rules

Enter a sell order if the following holds true:

1. If the lime line of the rsi_ma_trade_sist_chart;ex4 custom indicator intersects its blue line top downward, while a red downward pointing arrow is seen above the candlesticks as illustrated on Fig. 1.1, price is said to be pressured lower i.e. a signal to sell the BTC/USD pair.
2. If the sienna line along with the blue and red vertical bars of the PUX_CCI custom indicator aligns below the 0.00 level as depicted on Fig. 1.1, price is said to be taken lower, as such a sell is recommended.

Stop Loss for Sell Entry: Place stop loss above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

1. If while a sell is ongoing in the market, the lime line of the rsi_ma_trade_sist_chart.ex4 custom indicator crosses its blue line in a bottom up fashion manner as illustrated on Fig. 1.1, it is a trigger to exit or take profit immediately.
2. If the sienna line of the PUX_CCI custom indicator breaks above the 0.00 level during a sell market signal (refer to Fig. 1.1), it is a trigger to exit or take profit at once.

Sell Trade Example

Fig. 1.1


The PUX_CCI.ex4 is a trend momentum that is designed around the PUX CCI indicator.

It is most effective on major currency pairs with low spreads, but can also be deployed in trading cryptocurrencies, such as Bitcoin.

The rsi_ma_trade_sist_chart.ex4 custom indicator is comprised of the EMA and RSI indicator, hence it is a very powerful trend tool.