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The BTC twin setup for bullish markets
🕑 Added 2021-08-06 16:36:50 +0000 UTCHave you ever heard about longing and shorting a coin at the same time?
If you never have then this is probably going to have you scratching your head for a minute or two.
Shorting and longing at the same time is actually a very common practice, particularly among leverage traders that want to hedge the risk of going in a particular direction when it's not fully clear where are we heading. When dealing with collateral it can also compensate for the horrors of running out of it.
But we are not here today to discuss futures or leverage. Actually this article is going to be targeted at people that want to stick to the comfort zone of only trading bitcoin and in a relatively safer setup. We could say this setup is moderate, towards conservative.
We call this setup the BTC TWIN setup.
In this setup we will use a stable coin and BTC. It can be USDT but don't worry it will work very similar on BUSD, USDC, etc.
The assumption to run this bot is that we are in a bullish market. So if you fear we are in the middle of a large dead cat bounce about to fall of the 20K cliff of course stay away from this setup.
I personally don't thing that's the case but make your own decision on this as usual.
The long bot
We will use an aggressive bot using a quality signal such as QFL 1 hour and with only a 2.5% max deviation.
Backtests of this setup provides a 0.4% a day in average and closing deals in up to 3 days in the past 2 and a half months.
https://www.tradingview.com/chart/dx59baTw/
The short bot
Given the assumption that we are in a bull market, here's where we really need to be cautious. We do not want at any costs to lose any of all the BTC we have accumulated but we can still aim to make some humble very conservative profits here.
You know the say "the trend is your friend" which means that you shouldn't short on an uptrend. I leave the decision to run the full twin setup to you, but you can always decide to only run the long bot, and ignore the short one.
The short bot will use a larger max deviation, more SOs and Bollinger bands 4 hours to enter a short. This setup has shown in the past 2 and half months to always manage to take profit and therefore retain our beloved BTC.
BTC can do anything so you can always chose to not short all your holding, maybe just 30% or 60% and keep the rest safe.
You can also add some additional deal start conditions to the BB one, like RSI 4H > 75 or even higher. You can also add more SOs. Any of this would reduce the profits from the short bot but it will also increase its safety.
I'm currently running as it is and shorting 60% of my available BTC.
https://www.tradingview.com/chart/LtUyobeM/
BTC Twin setup copy links
The bot links I'm sharing have been running with a slightly different setup so non of the profits they show in their copy page corresponds to what this article describes.
I'll add them asap to the dashboard!
Comments
The short will open only when btc is running hot
Hello TP. Did you change the settings of the short bot? I am running it with these settings and it isn't opening any deals.
exactly
true! and you have to be very careful to not sell all your bitcoin. We know how aggressive it can pump and leave you staring at the short bot getting wrecked. This can be avoided by shorting with less funds or by shorting using higher timeframes, 4h / daily or even only in the weekly. The higher the timeframe the biggest the drop so you can aim for higher TP levels too.
Not entirely as David mentions this setup intents to make profits in any direction. This particular two bots have been setup with the assumption that we are going bullish, but you could do the same twin setup but for bearish market, in which case you short would have to be more aggressive than your long one.
David May
No, because a grid bot is just long, it buys low and sells high This proposal is buying low selling high with one bot, then selling additional stock high and buying back low with a short bot You're making profits both ways
Hi Mariano, using both short + Long isn't similar to run a Grid bot?
David May
Thanks, I've been doing this using the smart cover, but with limited success. I'm just not a good enough trader yet
Cool! I guess if you work with percentages for the orders, you have to make sure you have enough reserves when both bots have deals open at the same time, since TTP doesn't reserve the funds (market order). Only an issue if you choose big percentages, though.
Thanks for this! I was using some agressive bot for ir but got stuck few days till today i closed it with good profit, but i rather follow the one you share Mariano
