BTC/USD Scalping With Range Bars + PA

Just a small journal to document my trades on Bitcoin/US Dollar and possibly other alternative currency pairs.

My strategy is simple support/resistance, fib levels, and divergence. In combination with $1/bar range bars (1,000 pip) to make spotting S/R levels easier. For long term perspective another range bar chart is set to $10/bar (10,000 pip). This may sound like a lot but it really isn't since the broker only offers 3:1 leverage. Although that really isn't an issue because Bitcoin/USD can move $50-100 in a day.

With such small leverage 1,000 pip movements are comparable in earnings to 1 pip movements in the fx market.

To get this thread started here's a quick scalp from yesterday.

Entered a buy position @ $633 on support and retracement to .618 fib level

Sold @ $644 - Didn't have a good reason to exit this trade, actually I expected it to move another $10-20 which it indeed did do later on in the day. Not the best time of the year to be trading (day before Christmas) so any profit is good.

http://i863.photobucket.com/albums/a...ps800f1f4d.png

Click chart for larger clearer version

Total profit : 2.5%

Notice how nicely S/R levels show up with range bars.

Had a rather large loss (7.5%) that I forgot to post. So the next few trades will be catching back up to break even.

On a gut feeling shorted at the break of consolidation.

Short $723

Stop $727

Close $718

http://i863.photobucket.com/albums/a...ps0ad7bd06.png

Had this position been with a normal size lot instead of reduced it would have been a decent return. However as it is +1%

Shortly after the last scalp down I entered a long position intending to hold a little longer this time (a few hours instead of a few minutes)

On the way down price had clearly found support and was setting up for another move up to continue with the main trend.

Entry : $724

Stop : $714

Exit : $738

Decided to exit because price had been having difficulties breaking the previous higher high for the better part of an hour.

http://i863.photobucket.com/albums/a...psd5c91001.png

Another smaller position +1%


Also should note I've switched to $2 ranges bars or 2,000 pip/bar. $1 was a bit to noisy if you get my drift.

One of the things that really bugs me about this broker is the variable spread. Sometimes it's 500 pips (or below) other times 4,000. Although generally it averages 1,000-3,000 most often.

Anyways, I figured it would be best to make sure the next range bar will be enough to at least cover spread. Given the fact that it can be 4,000 (largest I've noticed is 3,650) $3 or 3,000 pip range bars should be a good estimate. Basically I want to be sure the spread and commission will not be an issue even if it's just a scalp.

What brought this up you may ask?

The trade posted above was set for just above a consolidation point. Spread skyrocketed from 500 to 3,000 at the break of that consolidation which also happened to be my entry price. In turn that skewed my positional expectation a bit. Even though it was still profitable I'd rather have a safeguard in place.

So instead of 10-20 min scalps the next round will more likely be 1-8 hour day trades.

Divergence play at strong support.

Entry: $744

Stop : $735

http://i863.photobucket.com/albums/a...ps7877206c.png

Stopped out

With all the currency pairs available for trading, why do you chose BTC to trade?
Is there something there that normal currency pairs don't offer?

Just to try a different way of trading. There isn't any advantage to bitcoin pairs vs normal currency pairs. Having traded both, btc/usd seems easily traded on support and resistance without much attention to other factors.

Long term trend has been up for most of the month.

However the short term chart is forming a descending triangle.

http://i863.photobucket.com/albums/a...psc5b3423b.png

Short @ 707

Stop placed above resistance level @ $719

Looking for a break of the $700 - $680 support level

Another loss... Not doing so well thus far