Hello, dear traders! I continue now with the best lecture I can say in this course. 1
And for me probably that would be one of the best lectures I'll ever record because I will show you 2
the Never losing formula that I came up for the BItcoin. Guys, to make it clear this was long time invented 3
for the currencies. 4
But since the currencies have changed so much with the algorithmic trading recent years, it is very 5
hard to use this formula on the normal Forex market but for the Bitcoin I have came up with this formula 6
after long sleepless or insomnia hours, 7
I can say, to calculate it and to put it in this course and to actually implement into the Bitcoin I 8
will show it to you now. 9
And I proudly say that this is actually a life changing gain. 10
This is a life changer formula. Because the big question is, we place this Buy Stop over here, 11
But at this moment, guys, when I am placing this Buy Stop, 12
the only thing I have the counter trend line and I know that the Bitcoin is extremely rising, it's going 13
up. 14
There is nothing else I know at this moment. And the only thing is I can hope that it will actually 15
hit my Take Profit over here, 16
right? 17
But many years ago, I have learned not to hope, not to believe and not to expect to happen 18
what I want to happen. 19
So, I base my trading nowadays only on algorithmic trading, 20
back testing and actually formulas mathematically proving that I will be on the profitable side. 21
There is nothing else, 22
guys. 23
No hope, no believe. 24
So, at this moment I am not hoping that actually my price will hit the Take Profit. 25
Of course, I want to happen but at this moment there is a huge possibility, at this moment over here that 26
the price will reverse and it will put me on a loss. 27
So, what I do, guys? I place another target on the short side. So, I will put in green as well, because 28
it`s a target. And I will put a horizontal line properties at the price of 3730 29
And this is my target. 30
So, I have my entry here. 31
I have my initial Take Profit and here down, 32
I have another target, guys. 33
I don't know which one will be hit first, but I know something for 100% certainty: At a 34
current moment in the future, the price will hit either this target or either this target. And I know one thing 35
for certainty as well that it will not happen in the same time, 36
Right? 37
I will show you now and I will prove you mathematically 38
with not so hard mathematical calculations that which ever target get hit first. 39
I will be on profit or the worst case scenario I will be on break even, on 0. 40
So, lets start now. 41
What we have is a Buy Stop, we said at the $4010 and we have a Take Profit of 42
$4220. 43
So, I hope here you can see it. What happens we enter here, 44
and our Take Profit is here. And if I open the specification of the Bitcoin, guys, you can see here that 45
we have one more cost. 46
This is the long and the short swap. 47
So, the swap is basically the cost that we pay to switch the position to the next day to transfer it 48
for the next day. 49
So, with the Bitcoin you can see no matter we are in a long or in a short position we will be paying 50
this swap. 51
That`s why I choose 52
$210. 53
Because I don't know how long time my trade will last, maybe it will be one day, maybe it will be 2 or 3 days. 54
Normally, should not be more than a week because as we said the Bitcoin is very volatile and it doesn't stay 55
in a range for a long time. 56
But if it stays for a couple of days I want my Pure Profit that's why I call it Pure Profit. 57
I want that I will have $200 as a Pure Profit after paying the spread 58
and after actually paying the swap. And you should keep in mind one thing, guys, as well. 59
These 3 days swap, here is on Friday. 60
Some brokers do it actually on Wednesday, which is a really surprising and sometimes you see some negative 61
on your balance and you wonder why is that. 62
And this is because of the swap. 63
So, you pay as well 3 days swap on Friday, so you pay for Friday, Saturday and Sunday even the markets are 64
closed. 65
You are still paying the swap to the broker and this is very normal. 66
We cannot actually skip that or go without it. 67
You don`t paying a swap if you are really short term trader if you are scalping you open the trading during the day and 68
close it, but sometimes with some systems your trade will be left for the next day. 69
That's why we need to pay the swap. So one more time, that's why I have choose 70
$210 as a distance, as a Take Profit, because I want these $10 extra to cover 71
my swap even sometimes the swap will be $4, 5, 6 totally from the trade, 72
but total Pure Profit 73
I will have at least $200. 74
OK? 75
And here you can see some other details for the trading asset that you choose 76
and the specification actually you can have it right button and you click on specification. 77
OK? 78
And here are all the details 79
and also you should keep always on mind that on the chart you see the bid price, but when you open a position 80
you open it on the ask price and you close the position on the bid. 81
So, we always pay the spread to the broker. 82
This is invertible. 83
We cannot really do it without it. 84
So, just keep in mind that when you open the position, for example, in this case the spread is floating 85
here in the specification. 86
But for this broker it's very stable to $10. 87
So, when I open the position I immediately on negative of 10, because I see on the charts the bid 88
price, 89
but actually my position was opened on the ask price. 90
Hope that's clear. 91
So, the first case that it's possible to happen is that we will have 200 of Pure Profit. 92
Right? 93
So, let me put it down. 94
What we will have is $210 of profit minus $10 of swap. 95
So totally, we will be having over here $200 of profit. Right? 96
Let me put it just a little bit bigger, guys, so you can see that I will put it to 16, let's put it any color, green 97
we have. 98
OK? 99
So, it's green. 100
We have $210 minus 10 101
and here we have our Take Profit, 102
we are out, 103
we are happy. 104
But what will happen if the price will reverse and go down? At the price of 105
3940. 106
OK, I will put it again 107
exactly. So, 3940 108
I would put it in a red color because this is a Sell position. At this level of 109
3940 110
I will open a short position with a lot of 1.4. 111
So, let's place one Arrow down. 112
So, what we say is that we actually go 1.4 lot short. 113
So simply, I will sell the Bitcoin. 114
I will try to explain as clean it's possible, because this is very, very important, guys, for your trading. 115
So, we have 1.4 lots 116
Let me put it as well in the red, because it's a sell. 117
OK? 118
So, here at this moment if the price reverses and goes down on the level of 3940 119
I will be placing actually a Sell Stop and now my Stop Loss for this position will be the level of 120
4220, and my Stop Loss for this position 121
the long one in the beginning, 122
so let me put also one arrow up to make sure where we are entering into the trade. 123
And let me make it green. 124
So, I hope this way it will be clear. 125
And also here I will put the lots. 126
So, I am sure that you understand what we are talking about and here also we are green. 127
OK? 128
So, we have 1 lot here going up and here is our Take Profit of this level of 4220, 129
$210 higher. 130
And if the price reverses $70 lower, stay with me guys, $70 lower 131
this is one third of the distance of the Take Profit. 132
OK? Take Profit 210 and my sell is just $70 lower. 133
OK? I'm opening a position of 1.4 lots. 134
So, the next thing that can happen is actually the price hits this target and guess what will happen 135
then? I will be negative 136
$280. 137
Let me put it in. 138
I will be negative of $280 from the first trade and as well 139
I will be positive 140
with $294 141
with the second trade, right? With the short trade with 1.4 lots and of course I will be paying as well. 142
$14 of swap. 143
So, for every lot traded I am adding $10 of swap as a cost as I explained to you probably it will be 144
lower with most of the cases it will be much more lower. 145
But this way I'm having more pessimistic way of calculating. 146
So, I prefer to put as a cost $10 and to have actually an extra left, extra dollars as profit left instead 147
of the opposite case. 148
So now, when I am having 1.4 I am putting $14 cost for the swap. 149
But again I say it will be most of the cases lower. 150
So, if the price hits the target at 3073, my Stop Loss for the first trade will 151
be hit and I will be negative of $280. 152
But the sale position of 1.4 will be on Take Profit of 294. 153
And these are simple calculations, guys,1.4 lot times 210 154
is 294. 155
And of course for 1.4 lot we will be paying $14 of swap. 156
And what we have. 157
I think we don't need to calculate it negative 158
$280 plus $294 minus $14 will be 0, break even. 159
We will be out of the whole equation without any losses. 160
Even the price didn't go the way we want and of course I'm sure into your mind now is what happens 161
if the price continues higher. 162
So, if we enter here the price goes lower we enter 1.4 lot and then it continues to go higher. At this 163
same level of 4010, guys, I will enter one more time with 1 lot on the long side. 164
So basically, I will buy 1 more lot. 165
OK? 166
So totally, I will be having 2 lots long and I will have 1.4 short and what will happen if the price 167
hits the target of 4220, I will put it down over here. 168
What we will have, guys, is we will have these 210 minus 10 from the first entry over here and 169
then we will have the loss of 1.4, because this short entry will have the Stop Loss of 170
4220 and we will be close. 171
So, what we will have over there is a negative of $392 plus another $210 172
from the second lot that we bought minus another $10. 173
So, let me show it to you with the calculator as well. 174
So, I will place over here. 175
So, we have 1 lot up and then we have the negative of 1.4. 176
So, we have 1.4 times 177
280, right? 178
So, this is 392 179
and then we have plus 210 minus $10. 180
So totally, what we will have is 210 minus 10 minus 392 plus 181
210 minus 10. 182
OK? 183
So, what we have in the end, guys, is $8 of profit. 184
So, what I am doing right now? I am building this middle section, which actually is my trigger section 185
with 2 lines where I am buying and selling. 186
I have the middle section which is equal to $70 of distance. This is the distance between the 187
upper line and the lower line. The upper when we are buying, the lower when we are selling. After that it's 188
very possible that the prices well will go lower. 189
And then what I will do? I will sell again at this level over here. 190
Let me make it in red, because it`s a sale. 191
OK? 192
So, what I have 193
it's another sell 194
again 1.4 lots right over here, red again, and then totally, guys, 195
we have 1.4 lots, 1.4 short, so totally 196
we have 2.8. 197
And the result if the price hits the target of 3730 will be total of negative to 80 plus 198
294 minus 14 199
and then from these long trade over here I will have again another negative of 280. 200
And then I will have a positive of 294 201
again and another $14 of swap. 202
So totally, you can do the calculation again without the calculator 203
I believe this is 0. 204
So, again if the price hits my target over here I will be out of the whole trade without any losses. 205
And again if the price continues higher and it breaks 4010 I will open a new buy position 206
but this time my lot need to be higher. 207
So, what I will enter with? I will enter with 1.95 lots. Is 1.95 and you 208
will see why. 209
So totally here, when the price breaks 4220 we will have negative of these 210
1.4. 211
So, this will be minus another 392 plus what we will have of 1.95 212
will be 1.95 times 210 total of 409.5. 213
So, it is 409.5 214
and this is in dollars. 215
Let me put the dollar mark over here and we have as well swap $19.50 216
So, here is the dollar again. 217
So, totally here we will have 210 minus 10 minus 392 plus 210 minus 10 what we 218
have is $8 and then what we have is minus 392 plus 409.5 219
minus 19.5 220
So, all we have is $6 left. 221
We will be again on profit. 222
And this is how it goes, guys. 223
This is how you can actually never end up on loss and you will not have a problem with the margin, 224
because you are having long and short positions, and they are very close to each other. 225
So, what we have, is simple and what we have is something that really works fantastic with the Bitcoin, 226
guys, because in our experience so far with Bitcoin we didn't see a case where the price is staying in 227
such a range more than 2 or 3 times. 228
Most of the time the price will hit your Take Profit, but if it doesn`t you have your second Take Profit over here. 229
You have this fantastic formula that will protect you from loss and whatever happens. 230
And once again with certainty you should know that the price will hit sooner or later 231
one of the two Take Profits and just for your information with the further calculation over here if buy sent 232
chance and would happens that you will need to go again lower. 233
You need to go down here with lots of 2.75. 234
So, let me put it down, so you can have it in mind. 235
But I will really appreciate if you sit down, take a pen and a paper and write down the whole formula and 236
calculate it for yourself, because these formula, guys, can be modified the way that you want. 237
I have chosen this Take Profit, because first of all I am very happy if I have $200 238
of profit. 239
And second of all, because I have a lot of research as I told you and I saw that actually we don't have 240
the case where the price for the Bitcoin will stay so long time sideways. 241
And this is actually the problem that comes if you trade this on the Forex market, the price can stay 242
in a range for so long. 243
But look at the chart of the Bitcoin, guys, it doesn't stay in such range. 244
And of course if you use the powerful tool of Counter trend line and the important support and resistance 245
lines that I show you more than 50% of the time 246
I can tell you that with certainty you will hit a your Take profit from the first chart, just like what have happened 247
in this example. But right here and just showing you what you need to do if the price goes against the trends 248
and what lots you need to open, how you need to calculate it, and simply said what you need to do to change 249
your trading and never, ever, ever have a Stop Loss again 250
to each your capital. What I suggest to you, is to write down the formula, do the calculations for yourself 251
on a wide piece of paper and you can start practicing even you enter, guys, somewhere and you 252
will place your Take Profit and you will create your middle section 253
you will end up always on a profit, a small profit 6 to 8, or more dollars, or worst case scenario 254
you will end up with 0, break even and this is fantastic, guys. 255
You don't need to put a Stop Loss, because simply you can see now that it's not needed. For one of my 256
other course 257
I had this criticism from some of the students that I'm using actually Expert Advisors without Stop Loss. 258
And yes I do. 259
Because if the price goes against me I can always calculate how to create my middle section and how 260
to have my Take Profit. 261
So in this way, guys, I don't know if you realize what I'm telling you here, but in this way you can always 262
exit from a negative trade with 0. 263
I'm really so excited to tell this and I really hope that more people will see this, because this is something 264
that will change your trading. 265
You can exit out of any negative trade. 266
And actually you will never ever need to put a Stop Loss again. Thank you, guys, bye.