Jan 13th 2019, Crypto Chartbook

Relative Strength

One of the most valuable positions is Cash. It simply isn’t wise to be all the time exposed to the market. Right now is just such a time where only a light exposure is sensible, since we are in a sideways leg of the market that hasn’t found its short term direction just yet.

Nevertheless just like in the stock market where one can expose capital to various sectors due to their strength or weakness towards the overall market and within these sectors than select under performing or outperforming candidates, the crypto market offers niches as well to allocate capital in an overall uncertain market environment.

This should be done on only a fraction of the typical exposure size, but can be very profitable.

The crypto market has not found it’s complete separation just yet so sector trading isn’t advisable but it does have tiers established and as such shows candidates of relative strength or weakness towards the market as well as beta trades (trading instruments that trade at an increased percentage move relative to its market counter party).

This week we have identified 4 such opportunities :

NEO daily chart as of January 13th, 2019

NEO daily chart as of January 13th, 2019

We advise not to force trades but in quiet times like these rather stay sidelined. If there are opportunities, they should be taken only if excellent setups on very low risk present themselves.

QTUM daily chart as of January 13th, 2019

QTUM daily chart as of January 13th, 2019

As much as we do not believe in the idea of diversification , in this rare case to have various candidates setup and see if a few might run can additionally mitigate some risk. This especially if all the candidates that did not react to the overall markets possible light bounce move are quickly taken to breakeven stops.

TRX daily chart as of January 13th, 2019

TRX daily chart as of January 13th, 2019

Those instruments who might turn out to be well picked and show a return should be conservatively early financed, to also erase risk of the overall market probably returning to its range mean.

BNB daily chart as of January 13th, 2019

BNB daily chart as of January 13th, 2019

It is important to focus on a very conservative money management model here as these trades are not in their probability of positive turn out as strong as their counterpart plays, that have their edges massively stacked in their favor.

All charts timely posted in our telegram channel.

About the Author:

Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.

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