I Continue To Short
Regular readers will be aware of a new trading strategy that I recently developed, which operates on 10X leverage. I began testing it exactly two weeks ago and have since then seen a relatively decent return. Fortunately, I was once again able to close all of my open positions this morning. This means that there are no floating losses and that these returns are secured and all capital is accessible.
Last week the trading account that I set up to begin testing this strategy was up 6% for its first week. Today marks the beginning of the third week and my account is now up 19% after two weeks of trading this new strategy. My realized gain for the second week is just more than double that of the first week. However, I might still find myself in a position where I am unable to close all of my open trades at the start of a new week.
Ideally, it’s a great practice but not always possible. As I mentioned, fortunately, I have been able to do so for the first two weeks. This past week saw me shorting LINK again, as well as XRP. I had some really good shorts on XRP on my main account as well. I closed those this morning as well. I did however go short XRP again after the morning bounce.
These shorts are currently looking good and I have moved my stop losses since the recent dip, ultimately protecting my capital, now that these trades are in profit. I am fairly satisfied with the performance of this strategy so far. Of course, the trick is to stick to the rules. Bending the rules removes the strategic aspect of the strategy, thus nullifying the entire endeavor. This is where I believe many traders sabotage themselves.
The Bear Market Blessing
One of the good things to come out of this bear market is that I learned something new about myself. I realized that I am a lot more efficient as a short trader. Some may argue that it’s simply because we are in a bear market, which is true to a point, I guess. However, when you are trading 10X it doesn’t take much to sideline you. You have to be pretty accurate. I find it easier to identify exhaustion, as opposed to momentum.
You can obviously still trade short in a bull market but it’s rather risky. That being said, I am kind of looking forward to the next bear market. Looking at the average of my performance utilizing this strategy, it appears to be approximately 45% per month. Not too bad, I suppose. If you can compound your trading account by 45% every month you will do pretty well over a year or two.
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Anyway, that’s it for this update. Things seem to be progressing nicely. I am quite pleased with the results thus far. We wait to see how this week turns out. See you in the next one!
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This article was first published on Sapphire Crypto.
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