Full Bitcoin Trading Strategy On ByBit [step by step strategy]

Welcome back to the Eric Crown crypto Channel and it is strategy day as we're Going to be going over a 15-minute short Side strategy Too many s's there for Bitcoin that I Want to give a bit of insight into the Way that one I trade to the way that Quantitative analysis works and then Three in actual strategy directly from The Quant program so you can have a Better idea of what it is if you are Looking at such things there's also a Few other videos on this channel as well That are freely available that go over Some other strategies understand that The program itself has uh 12 strategies At the time of this recording and Obviously for all those different Strategies there are multiple time Frames so in this case we're just going Over the 15 minute Jewel or Jewel light Sell strategy and in this case I'll run You through the first and most important Thing which is the trade strategy and Checklist what are we actually going to Be doing so first things first what time Frame are we going to be using the 15 Minute time frame what will be used for The main source of edge we're going to Be using the 15 minute Jewel or Jewel Light and we'll also be using the pmarp Indicator What defines a risk management parameter Ideally we want to see a closure above

Range highs an emergency a wick above The prior Trend high now the emergency Condition was not hit once in this Testing that doesn't mean that it's Never going to get hit of course it Absolutely needs to be in there just in Case because when it does get hit you're Very likely going to be very happy that It got hit even though it will be a Rather uh it will be a loss of course Anyways Um how will positions be entered so First things first we need to see a Crown cross to the downside that's with The 9 21 and 55 pointing in the downside Direction we'll go over an example of What that should look like the jewel Light must be above 68 and a half and The Jewel light First tick of white upon closure will be The entry on a full position I want to Address something here between both Entries and exits and risk management And it is this So a lot of the time fees can kind of Get in the way of of your profitability Especially on Lower term time frames Um you know maybe not necessarily the 15 Minute there's usually enough meat on The bones for a time frame like this but On like a five minute or especially Below a five minute the margins will be A little bit uh shallower and so fees do Come into a you know can be a bit of an

Issue so for one I like to use Bible Because they typically have lower fees They almost always have a promotion Going on one of the things that I Actually ensure with my own link that I Have for my buy bid affiliate is uh is That they always have a condition for Some sort of reduction in fees because I Know that's very important to me and I Suspect that other people out there who Are a little bit more active you Probably care about that as well so that Is in the link description below of Course you know full disclosure that is An affiliate link Um okay now let's get into the fun part What is going to be defining Profit taking well positions will be Exited with pmarp a below 20 percentile On closure All right sweet so uh what I'm going to Do here is I'm actually going to show You my trading journal with this I've Already gone through about uh well I Guess 21 entries thus far Actually add more on my other strategy Tester as well but I'll quickly show you The results as what I've had thus far We'll go through some examples of what The trade should look like and uh yeah As you can see well some uh some Consistent winners some Losers of course Throughout the 21 iterations that I Tested here there was a 71.5 win rate

Almost Um I should denote however that the Average loss was greater than the Average win so do you understand that This strategy is reliant on a higher win Rate now there will be ways of course to Optimize the risk management to make That number a little bit lower but I Wanted to make this video you know Appeal to a general audience so I wanted To use a little bit of an easier way Dare I say to manage risk so in this Case we'll go to the charts over here And I'll run through an example first Things first I need to explain all the Different indicators so the moving Averages refer to the crown cross that Is going to be the yellow 21 the green 55 and then I also have a in 9 Exponential moving average on there as Well preferably we want to see them all Moving in the same direction but for This particular setup the direction of The Cross is defined by the relationship Between the 21 and the 55 not the nine Although the nine definitely helps with Other strategies and I always kind of Have it on there alongside bbwp To get an idea of you know current Trend Activity anyways when the lower period That's going to be the yellow 21 is Trending below the higher period that's Going to be the green 55 here then we Officially have a crown cross to the

Downside okay once we have that then of Course we go reference the jewel light Which is in this pane here it needs to Be above 68 and a half and then on the First tick of white confirmation that is When the position was entered for this Particular testing and then pmarp right Here well just wait till it gets to uh Below 20 percentile Um now I should let you know that pmarp Is freely available in the public Library just type in literally pmarp Okay and then for the moving averages They're literally just exponential Movement averages so you can just grab a Couple of EMAs there or you can use my My ones on on trading view they're Public as well it's all this it's all The same thing really Um and then the jewel light So so so so so There is one last thing for the risk Management I wanted to make risk Management a little bit easier because I Do understand that maybe some people Might uh not be comfortable or confident With defining range hives and range lows So what you can do is you can use this Indicator here as kind of training Wheels this is an indicator that Essentially plots support and resistant Levels understand it's going to be Pretty good it's going to be mostly Right but it won't be perfect so it is

Obviously better to you know actually Understand how to do it yourself but it Is freely available on trading view all You need to do is go into the public Library here type in support it'll be One of the first ones that pops up this One's by Lux algo about 12 200 likes at The time of this recording Um so pretty good right there all right Sweet so now that we have that let's Just go through some examples Um okay so first things first we need to Find when the crown cross is actually to The downside all right so we have one Right here so now we search for when the Jewel light is printing above 68 and a Half and turning white on the first tick Which I believe we have right here this Would be the actual official closure so Theoretically could you optimize this Strategy and make it better yeah Absolutely Um you could you could potentially front Run something like that it's going to Come with an added cost of you know the Trade having a lower probability of Working out Um uh you know something like that could Obviously work could obviously average Into your positions as well you know all Of these things are are relevant but a Preferential call which only you can Make for yourself All right so we have this entry right

Here twenty thousand four thirty nine Let's go to the trading journal I'm Gonna add this one in oops not a new Journal new trade there we go uh what Was it twenty thousand four eighty nine We are going short hey we're going short I'm going to close this one immediately Because obviously we're gonna know Whether it's gonna win or not or Potentially and in this case Um it looks like it's probably not going To be a winner but Technically speaking my range Highs are All the way up here And by the way this brings up a nuanced Uh Point as to what range highs do you Use Um when uh when when trading the style Or at least in the way that this was Tested I used the most recent one in the Past so the most recent past resistance Or uh or or just level or Range High if You want to call it that as the risk Management so in this case Uh this trade is actually still in Progress probably not looking too good But unfortunately we can't mark it off Whether it was a win or not you can see However it got very close to the take Profit right here and Would have been let me just see okay Four uh 439 sorry that was 439 well We're not going to enter this one in Anyways because it's literally hasn't

Hasn't lost yet uh but this one would Have been a yeah almost almost a Short-term loss right there All right so let's move on to the next Example that hopefully actually has a Beginning and end that would be nice I see a crown cross starting to the Downside over here boom all right Beautiful let me take this away for now Let's kind of get in the way now we scan For when the jewel light is above 68 and A half and turning white and we actually Don't get anything here unfortunately The entry conditions are not met Um Intel actually here no we do get one All right there we go we got one all Right so the first tick white on closure Is going to be right here boom and that Would be twenty thousand five thirty Three entry let's go put that one in 25 33 we're going short and where's our Range highs range Highs are going to be Here so 27.50 or so And then price action comes down we go To take profit on closure for pmarp Right here 25 90 uh 596. 25.96 On these numbers must be wrong let's see What was closure here oh I'm sorry uh 24.60 I don't know what's going on with Me today Um where was I getting 596 that's a good Question uh the closure here is 460 okay All right so let's do that so this one's A nice little Gainer

Um A little bit less than 100 bucks and There we go let's go through some more Examples see what else we can find here Let me just I'm going to scroll back to Just some random price action let's go Over here Okay let's see and we have a crown Across the downside starting here okay Scanning for The jewel light above 68 and looks like We don't get it yeah we don't get it Actually that whole way through Um this strategy is obviously going to Be better when things are just generally Downtrending when when things are Generally up trending like you see right Here it's not really supposed to give You those entries Um so those are going to be less uh less Likely to work on your favor anyways but Here we go we got another one over here Crown cross the downside boom okay Scanning for Jewel light first tick Above Um 68 and a half white boom right here Okay and turn on the closure 19082. let's do that Short and let's see where's our range Highs it's literally just a little bit Before that 19 135 And then our take profit gets hit right Here on closure uh 19 000 so nice little 100 Gainer which is

What we've been essentially regulated to When Bitcoin is going through one of the Least volatile periods in its full History uh throughout this time this was Like literally in the heart of October Which I'm sure for most people has been One of the most boring times in in terms Of Bitcoin trading all right so here we Go this is uh Let's start it off when the actual cross Happens all right cross happens over Here boom all right let's go scan we got Our first Jewel light closure with white above the 68 and a half right here boom 19 975. Okay Going short and Where's our take profit well it's right Here soon after that And I should denote here or you'll Probably uh you'll very likely Accurately see that obviously if you Held onto this trade it would have been A pretty big winner and there's more on It other than what we're gonna get on This one this strategy is not for Trading the trend it's for trading it's For trading with the trend but scalping On the trend so you're not going to get Those trades there are other strategies For such things this is not one of them Obviously All right so in this case exit is uh 19 766 on closure whoops wrong pane

Boom and looks like we have another win Win rate continues to go up which is Nice and then there's another entry Right here Boom Get our Jewel light condition met lovely Obviously it's still to the downside as Far as moving averages go and we got our Range highs uh literally one two uh Um close beforehand so that's going to Be the risk management in this case 19 650 or so and now we wait for either That to get hit on a closing basis I Should say very important here Or in a wick base or sorry Um uh or or take profit to get hit and In this case take profit gets hit first 19435 is the exit and I didn't even Record it over here so here's the entry 19554. Okay over here 19435 Okay boom and another decent win again During very low volatile times so uh the Numbers are just naturally going to be Lower All right I'd like to find a loser Um just to address what that's going to Look like Um I think we actually have one here yes We do Um maybe not let's see all right so Still to the downside as far as movie Never just go we get the

Jewel light condition right here I'll Mark it off boom okay 19 393 is going to Be the entry Oops Three All right so let's see does it hit the Take profit first or does it hit the Risk management risk management is Coming in from this area This range height here boom And you can see Let me actually get it and it's the wick High of that Would be a little smidge high but it Does matter there we go All right and so I wanted to address This is actually a perfect one to Address because you can see that price Action comes back up to the range highs Test the range highs even goes above the Range Highs but not on a closing basis If it does not close above then it is Not a uh it's it's not we don't well at Least I don't close it as far as the Testing goes on this so that's the way That the data was tested And then you can see soon after that Price section comes back down And we get an exit here in 19376. 19. 3 76. now let me just go back and for a Second I want to totally ensure that This is correct so here's the range Highs it is uh 195 27 and a half okay

And we do have Oh we actually do have a closure above Right here so this this uh this would Have been a loss if we used this Range High as risk management this is why do You say that this indicator is more like A training wheel rather than you know The endoobile it's going to be mostly Right in this case Um I would actually disagree with it It's the the real franchise are coming In from like back here honestly Um obviously it's gonna have a lot more Risk but in this case you know keeps you In the trade and well the trade is a Winner it's a very small winner of Course but it is a winner nonetheless Um so in this case you know the way that I tested the data I uh whoops wrong pain Although I'll show you that pain soon Enough for uh for even more trades for Even more iterations but the way that I Tested the data was by using Um was by using myself running the range Highs not necessarily this indicator but This indicator mostly going to be right It's mostly going to be right all right Let's find a loss they will certainly be Happening and I should also need to note Why you want to be taking your losses When you get a loss Uh well over here I mean here's another Trade but this is just another winner I Mean obviously you get your first tick

White right here boom 19294. Keep on hitting the wrong pane Short and we get out Over here 19198 198. boom there we go all right uh I Would really like to find a loser though Um which shouldn't be too hard the Problem is is that price action has Generally been down trending so Strategy is going to be mostly good for That Let's see It's going to be another winner Um to find damn loser like to find a Damn loser See maybe over here yes yes no actually I would have defined this one as a loser Because I would have put the range size Right here and obviously closed above But Let's see can we get a loser I'm sure we Can Okay nope that's another win there Another win All right Um It's not making this one easy on me Today All right this one's gonna be another Win another win Okay another win Um hmm All right I I do feel like I really Should show a loss here just I can show

You what it should look like Um but I am having a bit of difficulty Finding one for right now okay hold on Maybe here maybe here He does take profit get hit beforehand No it does not boom okay we have a loser It's It's a loser all right beautiful okay Okay so in this case we have the Downside condition met on the movement Averages we have the first tick of white On the jewel light right here on closure 18 767. Um Okay and where's our range highs well a Range house is coming in from this area Right here Boom Um and as you can see price action Closes above ever so slightly right here 19309 take the loss And as you can see the loss is rather Sizeable which obviously we rather get Out of the way right there instead of Holding on to hoping and praying that It's going to reverse in our in our Favor All right let's go through maybe one More if we can find maybe there's one Yeps we do have one right here It's ever so slight Um Yeah okay All right so again in this case it's

Another one of those cases where my Range highs would have been different Than this indicator but um in this case We do have basically an entry right here It's spot one tick below but close Enough is close enough for the purposes Of this demonstration I just want to Show a damn loss Um risk management we'll just we'll just Run with this indicator in this in this Particular example you can see a slight Closure above right here 19870 so entry Was 19778. And exit is going to be on the closure Above this red line that's the most Recent one that's right here in 19870. All right so about a hundred dollar loss Okay there we go all right that's what We're looking for okay and I must have Typed in a number wrong because I'm Getting a humongous average loss there So I probably hit a extra zero and it's Got to be this one right here all right Uh yep 39 376 instead of probably 19 376 Huh all right let me go in and edit that Okay Listen That should change it there we go and These results look a lot more similar to My own back testing which is these Results plus about 50 iterations here So in my own back testing found about a 74 win rate Um throughout the 50 iterations on

Average took about uh just over three Hours for the winning trades versus the Losing side which was 440 minutes that's Uh I don't know what that's like seven Hours a little bit over seven hours on Average Um the average percentage p l on the Gainers was not points 85 percent and on The losers was uh one spot one three Percent which you can also use these to Both take profit or manage risk on it as Well which is actually the way that I Trade these I'm using the quantitative Data so that'll be here that'll be there I just prefer more um uh iterations so That's why I showed that one but in this Case we already have 30 over here so It's actually building itself up rather Large and I think that's a good insight Into the way that I trade and the way And what you could expect in some like The Quan program and obviously this Strategy you you're free to use I mean You can obviously iterate on top of it I'm sure that you can see that there are Some very easy ways to optimize it um Uh when we went through some of these Examples here and that'll do it for Today with that said I'll see you in the Next one take care