Book Image

Zero to Hero in Cryptocurrency Trading

By : Bogdan Vaida
Book Image

Zero to Hero in Cryptocurrency Trading

By: Bogdan Vaida

Overview of this book

In today's fast-paced digital age, cryptocurrencies have emerged as a revolutionary financial asset class, capturing the attention of investors and traders worldwide. However, navigating the world of cryptocurrency trading can be overwhelming for beginners. Zero to Hero in Cryptocurrency Trading acts as a guiding light to navigate this complex realm. This comprehensive guide to cryptocurrency trading empowers you to go from a novice trader to a proficient investor by helping you implement your own trading strategy. As you progress, you’ll gain structured trading knowledge through hands-on examples and real-time scenarios, bolstered by trading psychology and money management techniques. You’ll be able to automate your manual trades with an algorithm that works even while you sleep. You’ll also benefit from interactive teaching methods, including screenshots, charts, and drawings to help decode market operations and craft your unique edge in the dynamic crypto world. As an added bonus, you’ll receive ready-to-use templates to identify useful indicators, test your strategy, and even maintain a trading journal. By the end of this book, you’ll be well-equipped to trade cryptocurrencies and automate manual trading to give you an edge in the markets.
Table of Contents (13 chapters)
9
Chapter 9: What’s Next?

Testing checklist

When testing strategies, run through this checklist to make sure you haven’t forgotten anything. Also, note that you might not be able to manually test everything, and that’s all right. It’s okay to not be perfect and to have some unknowns when you trade a strategy. But ideally, know the unknowns:

  • How many trades did you have? Testing over 3 months with 3 trades is different from testing over 1 week with 100 trades and they tell you different things.
  • Did you test it through ascending, descending, and sideways trends? But did you also test it in the previous X days/weeks/months (depending on the timeframe)? Did you test through a period where the market changed direction (situation: your filter identified a bull market, you trade it, but it takes a while for the filter to identify that the market became bear while your strategy is still running)? Was the dataset detrended?
  • Are proper filters in place? Is it biased toward a certain...