Crypto trading is the only way we can benefit when others loose on exchanges.
Crypto trading is what Petko Aleksandrov, head trader and mentor, at EA Forex Academy, teaches in his classes. There is a single reason behind that. When using contracts for difference, profits can be made when the crypto market is going down. Many people believed in the Bitcoin as quick way to profit, but it turned out that many lost all of their savings.
Crypto trading with the proper strategy and money management is much smarter choice.
In this lecture from Petko Aleksandrov, you will teach you a crypto trading system that he has called the “Never losing formula”. This is a free lecture from the course Ethereum trading robot course – Cryptocurrency never losing formula. This is a method that protects the trader when the price goes against him. With every crypto trading system, and with every цръпто trading position, there are always the times when the price goes against the initial direction.
The formula is based on pure mathematical calculations. In this course, you will learn how the trader calculates the lot sizes and the distances. This is very important part in order at the end of the equation to be out with zero losses. The idea of the formula is not to benefit from it, but to exit the negative trades with zero losses. So if only the profitable ones are left, this is not bad, isn’t it?
Petko combines an Expert Advisors for crypto trading, and in this case the Ethereum, with the major trend of the price. This way he increases the profit factor, and the TP is reached much more often.
The formula plays the role of a SL. But instead of a SL, it is a pending order on the opposite direction. Bellow you will find the lecture where all of that is explained. Enjoy!
Hello dear traders, I continue now with the Never losing formula for crypto trading.
It’s a formula that I have shown in some of my previous courses for the Bitcoin – Bitcoin trading course – Cryptocurrency never losing formula and Bitcoin Trading Robot – Cryptocurrency never losing formula.
But since the Bitcoin became a little bit expensive the spread is much bigger than with the Ethereum. And I have decided to launch this Ethereum trading robot course, where I will show you again the Never losing formula.
And of course I will explain it in details. I will do my best actually to explain it easier, simpler. Because I have received so many questions from beginner traders that didn’t understand how it works. And I will do my best to explain it as clear as possible, as simpler as possible.
I will start from white screen and I will do some drawings, and I will do some calculations. I really hope that everybody will understand. If you have already watched the course for the Bitcoin where I explain the formula or the Cryptocurrency Algorithmic Trading course – The Revolution where I have included as well and actually there is a crypto trading example with the Ethereum there.
In this course you will see more examples with the Ethereum, I’m focusing on the Ethereum right now.
Because it’s cheaper to be traded, since the spread is nearly 10 times smaller than the spread with the Bitcoin.
So, to make it clear now for the students who have not watched the previous course with the Bitcoin and this is the first course they are taking the Never losing formula is something that protects us from the bad trades. We will be using the Expert Advisor to enter into the trade. But after that if the price goes against us we will use this formula in order to exit the bad trade with zero.
How is it working?
The Expert Advisor is taking the trade if it goes to the Take Profit and hits the Take Profit, that’s fantastic. I don’t need even to give an examples with that. You place the Expert Advisor on the chart, it hits your Take Profit – fantastic.
What happens if the price goes against our direction?
There is no Stop Loss, so our capital is at risk. We need to protect it. Crypto trading is very volatile, and protection is a must!
Here comes the formula which will actually exit the trade with 0 losses or even a small profit.
One more time, I will do my best to explain it as simplier as possible and if you have any questions of course at any moment let me know at our SUPPORT FORUM. I will do my best to answer you quickly and in details.
But here really I will put my best effort to explain it clearer and simple, so everyone should understand it. Also, this formula can be used for any other crypto trading asset. It is easy to modify, and once you learn to calculate it, you will be bale to use it for any other crypto trading asset.
Let’s say we have placed the Expert Advisor and it opened a trade at the price of 690.
So, at 690 we have sold. The Expert Advisor has sold. I will use very simple drawing tools just to show you what happens.
At this moment the Expert Advisor has sold 1 lot size. At the price of 690. As you know the Take Profit of the strategy is $100. When I am using the Never losing formula with the Ethereum I modify it to $90 instead of $100. The volatility in crypto trading recently fell down.
Make sure not to place unrealistic and huge Take Profits. That probably will not be reached.
If you keep your Take Profit closer the more you will hit it. This is simply logical. Once again once the trade is opened with the Expert Advisor, let’s assume it is at 690, it opens a trade with 1 lot. And I modify this order manually to make it $90 of profit and not $100. Just I’m taking it a little bit closer and this means that here my Take Profit will be at $600.
As I have said if the price hits my Take Profit that’s great, you don’t need to worry about nothing. These ofcourse are the best examples for Crypto trading.
And I will do my best to record more examples. But even as said I don’t need to record such examples because this is the best case. This is thing we are looking for, if it happens it’s great.
Now, what happens if the price goes against us?
You sell, the Expert Advisor sell but then the price goes higher. Obviously, you will start to lose from your account. Now, what I will do? I will place a buy stop once the trade is open. Once the first trade is open, this one over here immediately I place a buy stop $30 higher. This means that it will be at the price of 720:
At 720 I will place a buy stop and this is a pending order which means when the price reaches this level it will enter into the trade automatically. But here my pending order will be with 1.4 lot size. At this moment I will have this initial negative trade. And in the same time if my buy stop is hit I will have this positive trade if the price goes higher. Keep in mind that this is crypto trading, and we can do this. Something that is impossible on exchanges.
And this buy stop will have the very same Take Profit as the sell position. This will be at the price of 810.
One more time let’s summarize it, so if you apply on any other crypto trading currency, you will know the idea.
The Expert Advisor enters short trade here. We modify the Take Profit $90 instead of 100. After that if the price hits will be great. What I will have? $90 of profit. If the price goes against us I will enter $30 higher with a pending order buy stop with 1.4 lot size.
If the price hits this target for the second order what I will have?
I will have negative from the sell which will be $120. And then I will have positive of $126. Let me show you why is that.
This is because if I bring up the calculator if I have distance of $90 times 1.4 lot size what I will have? 126. As you can see at this moment I will be out with $6 of profit. The price went against me and I will be on profit. This is one more time the case when the trade is opened I place a buy stop.
Just in case if the price goes against me and if it does go against me I will have totally $6 of profit. And I will be out without losses even the price went against me. At this moment I will be out without losses and I will place the Expert Advisor again for crypto trading.
Normally what I do?
When I place the Expert Advisor and it opens a trade and I want to combine it with a Never losing formula I remove after that the Expert Advisor from the chart. Because as you saw the Expert Advisor has an exit rule. It is very possible that it will exit somewhere while I am still in a loss.
The idea here, is that I’m using the Expert Advisor only to enter into the trade. Only to give me the signal and not only to give me the signal but to execute the trade for me automatically. After that I take over, I take control of it.
Probably for the people who are just first time watching this, who don’t know the formula what will say? Will say:
“OK, what happens if I enter the buy stop but the price goes again lower?”
And this is the subject of my next lecture of the Ethereum trading robot course– Cryptocurrency never losing formula. I will explain you how we manage the formula if the price goes in this range and hits this level couple of times. And this is actually what I call the mid zone.
In the course I will explain you what we do after the buy stop is hit but the price goes down again.
This is very important, this is unique thing that will save you a lot of losses. And if you manage it properly you will have only the good, the profitable trades and you will exit the bad trades without losses.
That was the lecture from Petko Aleksandrov, the head trader at EA Forex Academy. We have launched already many crypto trading courses for Bitcoin, Ethereum and Ripple.
Most of the systems are suitable for any of the other crypto trading currencies.
If you prefer to trade any other, you can apply the same methods, just you need to modify the formula according to the volatility of the crypto trading asset.
Also, if you use the Expert Advisor, make sure you optimize it. This is very important step in algorithmic crypto trading. One and the same Expert Advisor for crypto trading can not be used for different cryptocurrencies.
What you need to do?
Place back the Expert Advisor in EA Studio and import the historical data from your crypto trading broker. This can be done with the script which exports data from Meta Trader. The script can be found for free in tools of EA Studio. Click on Data Import, and click on the script according to which platform you have selected to use – Meta Trader 4 or Meta Trader 5:
Place the script, in the scripts folder of Meta Trader, and refresh. Drag it over the chart. Make sure to press the Home key before that, which will force Meta Trader download load more historical bars.
After that, drag the exported files to the same page of EA Studio from where you have downloaded the scripts. You will see your server name, and you will be able to make an optimization for the crypto trading asset that you have selected.
Here are some useful topics that will improve you crypto trading:
- Here is a video that explains in details – Forex historical data – how to export properly for EA Studio.
- For more crypto courses please visit our Crypto trading section.
- If you have any questions, please write at our Support Forum.
You are very welcome to share your experience, or ask any questions. There you will receive personal support by Petko Aleksandrov always with 12 hours.
Safe trading, and make sure always to practice on Demo account.