This article is about what the active trader in crypto currencies needs to create, monitor and execute their trading program, in order to meet their own trade objectives

  • current crypto platforms and exchanges do not offer the tools that are needed, they offer the tools that are available

Retail traders trading foreign exchange derivatives, 99% lose money

Foreign exchange margin brokers are now offering crypto currencies as well as foreign exchange on margin

So can the active retail trader in crypto currencies make money?

  • most traders in derivatives will lose money
  • crypto currencies are now being offered on FX broker platforms – these broker platforms offer more advanced tools, information and programs not offered by the crypto platforms – and yet, most traders will lose money
  • What is it that traders need to know so they can create and meet their own trading objectives, not available to retail traders
  • whatever tools needed, they are not available on the current range of platforms
  • If these tools were available, would they be offered on any platform that a retail trader can access
  • If everyone had access to the necessary tools to make money, well then, the trader loses any edge in using those tools

So the platform the active derivative trader needs, must offer the essential tools and intelligence that allows the derivative trader to create, monitor and execute trades that meet their objectives

  • unique predictive analytical tools that work in all market price structures-conditions [most tools that fail only work in a limited range of market price structures]
  • limited to a select few members of the trading community – to maintain the predictive algorithms edge
  • a suite of tools that allow the trader to create their own programs that meet their trading ‘style’ – each trader has their own ‘style’ and the tools need to support this ‘style’
  • automated, discretionary, and hybrid trading programs

What would this platform look like, given it shouldn’t exist, and if it did, it would not be made available to the retail trader

It would look something like: managedleverage.com

  • in Beta testing
  • pre ICO where 1 ML2 token offers perpetual access to the trading platform – no further costs: managedleverage2ico.com
  • limited number of members [governed by the ERC20 smart contract]
  • designed to offer ALL the tools and intelligence necessary for any active trader to meet their trading objectives
  • specific crypto currency trading and portfolio management tools [for 1,700 crypto currencies]
  • all the tools offered by exchanges to enable the trader to use both the technical tools and ML^2 tools  
  • advanced predictive analytics [CSi^ program]
  • 10,000 + financial derivatives including 1700 crypto currencies

The rest of the article simply goes on to outline the problems the retail trader faces in trading derivatives – focus is on crypto currency trading.

The OTC crypto exchanges and the generic margin broker platforms offer a series of tools [technical analysis] and news information to allow the trader to formulate their trading strategy

Crypto exchanges offer restricted services:

  • Token universe: in the number of crypto currencies
  • Information in the price [bid / offer] 24 hour: prices returns, price changes, volume

Some platforms offer technical analysis [mainly the FX margin brokers – which is a legacy tool from their foreign exchange platform]

Storage of your crypto assets [some allow only the buy and sell of their tokens on their exchange, some take fiat money to buy crypto currencies, some allow transfer of the crypto currency from their exchange to allow the trader to trade on other exchanges, some offer margin or crypto currencies as derivatives]

But what does the trader actually need:

  • the execution of buying or selling the crypto assets is essential,
  • trading signals come from either technical tools, news feeds [sentiment analysis] or fundamental analysis

The experience of FX margin traders is that near 99% will lose money

  • These FX traders have access to more advanced tools than crypto currency traders have from their exchange, and more liquid instruments
  • The crypto trader can of course use technical analysis outside of their exchange, read news and crypto news sites, and sites that offer analysis of each token on a fundamental analysis for trading, investing in or ICOs

For the current state of the crypto-currency market, and given the nature of the crypto currencies price movements since 2012 – 2017 and into 2018

The active crypto trader needs to know the following:

“The current price structure [regime] of the financial instrument”

  • if the instrument [crypto currency] is in a mean reversion, random, or a trending-momentum structure-regime
  • what this means is that the instruments forward price pattern will either be predictable in a certain direction [price moving up or down], or unpredictable [random]
  • the trending-momentum price path will indicate that the next price will be in the same direction as the previous direction – so the price continues to move up or down
  • the mean reverting price path, is where the price will move up/ down in a direction but the next price is more likely to be in the opposite direction – so the price moves in a more saw tooth pattern but in a consistent direction
  • random price path is unpredictable
  • the forward price path over a preset time period over many time units: 5 minutes, 15 minutes, 30 minutes, 60 minutes, 24 hours
  • advanced warning-alert to when the current price path will change, and what the new price path will be

So, the trader will know where the future price of any crypto currency will be in time.

This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of The Merkle. This is not investment, trading, or gambling advice. Always conduct your own independent research.

The writer of this post is a guest. Opinions in the article are solely of the writer and do not reflect Null TX's view.