TRADING PLAN FOR SWING TRADING IN CRYPTOCURRENCIES
General Aspects
1. Assets: Only trade cryptocurrencies with high liquidity (BTC, ETH, or any other with significant volume).
2. Timeframes:
Main Analysis in 1D and 4H.
Refinements in 1H and 15M to confirm entries.
3. Analysis and Trading Sessions:
Trade exclusively during the New York session, between 7:30 AM and 11:30 AM.
4. Duration of Trades: Keep positions open between 2 days and 2 weeks, depending on market conditions.
Analysis and Confluences
General Analysis
1. Identify Market Structure in 1D and 4H:
Significant Highs and Lows.
Key Areas of Support and Resistance.
2. Determine if the price is in an impulse or correction phase.
3. Define the Trading Range in 4H (relevant supply and demand zones).
4. Locate Premium/Discount zones to optimize entry and exit points.
5. Identify key liquidity zones (stop hunts and accumulation/distribution areas).
6. Analyze volume to confirm institutional interest or manipulation.
7. Establish Points of Interest (POIs) in 4H and refine them in 1H or 15M.
Necessary Confluences
At least 5 of the following 9 confluences are required to validate a trade (prioritizing the first 4):
1. Significant Order Block.
2. Price Inefficiency (Fair Value Gap).
3. Break of Structure (BOS).
4. Inducement/Liquidity Mitigation at Key Points (highs/lows).
5. Pending Liquidity (Stop Loss Hunt).
6. Clean Structural Movement prior to mitigating an OB.
7. Change of Character (CHoCH) in lower timeframes.
8. Flip Zones (D2S or S2D).
9. Premium or Discount Zones aligned with the trading range.
Entry Strategy
1. Confirmations: Enter only if at least 5 of the aforementioned confluences are met.
2. Final Confirmation: Validate the entry with a Liquidity Grab or Change of Character in 1H or 15M.
3. Trend: Only trade against the trend if there is a clear CHoCH and other confirmations are met.
4. Initial Risk: Enter only in Premium or Discount zones.
5. Position Management: Protect the trade at the 1:2 level if the price moves efficiently towards the target.
6. Weekly Profit: Aim for a weekly profit of 6% of the account as a maximum target.
7. High Risk: Take higher risk trades only if 6 or more confluences are met.
Risk Management
1. Accept Risk: Understand that each trade can be a loss.
2. Initial Risk: Trade with a risk of 0.5% of the account until achieving consistency in profit.
3. Increase Risk: Raise the risk to 1% per trade after three consecutive weeks in profit.
4. Daily Drawdown: Limit daily losses to 1% of the total account capital.
5. RR Ratio: Only take trades with a minimum risk-reward ratio of 1:4.
6. Maximum Losses: Do not exceed a 3% weekly loss.
7. Active Management: Adjust Stop Loss to the entry point after reaching a RR of 1:2.
Psychology and Emotional Management
1. Avoid FOMO: Do not enter trades impulsively due to fear of missing opportunities.
2. Emotional State:
If you feel stressed or frustrated, close the charts and engage in a relaxing activity.
If you are euphoric, avoid trading until you control your emotions.
3. Discipline: Stay focused on your plan; do not improvise or modify rules in the middle of a trade.
4. Consistency: Follow the steps of the plan even after losing or winning streaks.
5. Weekly Review: Evaluate your trades at the end of each week to adjust and improve your performance.
Trading Plan Summary
This plan is designed to maximize your gains in swing trading cryptocurrencies, strictly managing daily and weekly risk. By maintaining a disciplined and professional approach, you will achieve consistency and growth in the long term.
Trade with patience, precision, and confidence!