Let's discuss why I no longer use indicators.
Let's discuss why I no longer use indicators.

By MadMaxx | Psycho Crypto | 2 Mar 2020


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In seemingly what would be the most dangerous move of my life up to this point, I decided to not use indicators since the beginning of the year.

Yes, I posted analyses on my blog about certain cryptocurrencies, and on those analyses I had my two favourite indicators on: The Bollinger bands and the RSI.

But the only reason I had them on was for the purpose of the post. Once I was done taking the screenshots, I removed the indicators and continued my trading.

Why? You ask.

Let's find out.

So I have been a professional trader for 5 years now. If you read my surprisingly popular story of how I got started in crypto (that post very surprisingly blew up with over 6k views. Check it out here!), you would know that I was able to grow my account very fast.

How? Using indicators.

And for the whole of last year, I doubled my account at every half of the year. How? With indicators.

Why on God's green earth would I then want to remove what has given me such an edge for so long?

Because I found a better way.

Now, I won't be telling you this way in this post. You'd have to wait till tomorrow, when I post my new strategy. Hit that follow button if it isn't green already.

But I have backtested this my new strategy the whole of February. The result? From $500 to $1500 in account value.

Now this isn't a holy grail system. I actually once made a $43 loss while using this system, and that was a huge percentage of my account.

But I was able to TRIPLE that account in a month, all without using a single indicator.

So apart from my new trading strategy, why did I kill all my indicators?

For one reason: Everyone uses them.

Technical analysis as a whole, along with indicators are all about creating self fulfilling prophesies.

Everyone was taught that once a hammer forms on a support level, it means a reversal to the upside is near.

So because everyone who has been taught this was sees a hammer on a support line, they rush in with their buy orders. That jacks the price up.

Or how about the Fibonacci levels? That we take our profits at the 50% level? We'll, that only works because everyone is waiting for that level too!

I quit using indicators because I didn't want to follow the crowd.

Imagine if your MACD has had a bearish crossover, your RSI is screaming buy but the last candle was a bearish engulfment type. What do you do with your money then?

Most people do not use just one indicator, but rather combine many of them to yield some kind of crystal ball.

And because everyone else is waiting for these signs, they usually work.

So that is why I no longer use indicators. You will see my very successful plan(with proof) tomorrow. Stay tuned!

For a limited time, get a reward when you download the Trust wallet! You don't need to make any transactions with it, just download and set it up. Do that here and claim your free reward!


MadMaxx
MadMaxx

Shitcoin flipper. Derivatives and options trader. Bitcoin and Ethereum futures and inverse swap contracts. Professional trader. Never financial advice.


Psycho Crypto
Psycho Crypto

Fun experiments with crypto!

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