investment strategies in bitcoin

Investment Strategies in Bitcoin

Harry Yeh Binary Financial

http://binaryfin.com @harryyeh

info@binaryfin.com

Trading Bitcoin

• Trading 101 • Fundamental Analysis • Technical Analysis and Charting • References • Q & A

Trading 101

Trading 101

• Where is the price going to be? • Ways to Trade Bitcoin • Terminology • Trader Psychology

Where is the price going to be?

Where is the price going to be?

• Use a combination of fundamental analysis and technical analysis • Trend Following

Ways to Trade Bitcoin

Ways to Trade Bitcoin

• Money Making Methods • On Exchange • OTC (Over the Counter) • Arbitrage • Market Making

Money Making Methods

• "Buy Low - Sell High" • Margin Trading “shorting” (Bitfinex) • Futures trading (Huobi,BitMex) - Derivatives • Options (In the works - CFTC LedgerX )

On Exchange

• OTC (Over the Counter)

Arbitrage

• “Simultaneous Buying and selling of the same commodity or currency in one market and selling on another” • Buy OTC (over the counter) and sell on

Exchange

Market Making

• Providing Liquidity - essentially providing “Limit” orders for both buy and sell • Profit from the spread • Usually Algo Trading or HFT Electronic Trading

Terminology

Terminology

• Bid / Offer / Buy / Long • Ask / Sell / Short

Trader Psychology

Trader Psychology

• Cut Losses Quickly • Let Profits Run • Always have an exit strategy

• ATP = Always Take Profits

• ATB = Always Be Trading - 10,000 hrs to be proficient - 40,000 to master

Trader Psychology

• DON’T PIG OUT!!!!

Fundamental Analysis

Fundamental Analysis

• What is Fundamental Analysis

What is Fundamental Analysis

• Fundamental Analysis in Bitcoin is primarily News Analysis and Macro events • Bitcointalk, Reedit /r bitcoin • Research Driven -

Technical Analysis and Charting

Technical Analysis and Charting

• What is Technical Analysis • Tools • Type of Charts and Data • Technical Indicators • Chart Patterns

What is Technical Analysis?

What is Technical Analysis?

• Study of Charts and Patterns to determine where the price may go • “Past performance gives a better indicator of

how something may perform” • A “Self Fulfilling Prophecy” - used by Traders

Tools

Tools (Software)

• (RTBTC) • Bitcoin Wisdom http://bitcoinwisdom.com • BFXData.com • cryptowat.ch

• Notifications • Use Apps to Notify on Pricing

Zero block

Bitcoin Wisdom

cryptowat.ch

BFX Data

Tools (Hardware)

• Notifications • Apple Watch

Tools (Hardware)

• Trader Workstation

Tools (Hardware)

Tools (Hardware)

Types of Charts and Data

Types of Charts and Data

• Bitcoin Price Chart • Visual Depth Chart and Order Book • Time and Sales

Bitcoin Price Chart

Visual Depth Chart and Order Book

Time and Sales

Technical Indicators

Technical Indicators

• Candle Sticks • Volume Indicator • Exponential Moving Averages • Stochastic (Momentum) • RSI - Overbought / Oversold

Candle Sticks

Volume Indicator

Exponential Moving Averages

Stochastic (Momentum)

RSI - Overbought / Oversold

Chart Patterns

Chart Patterns

• Parabolic • Dead Cat Bounce • Sideways Action • BULL BEAR WHALE (rare)

Parabolic

Dead Cat Bounce

Sideways Action

BULL BEAR WHALE

References

References

• https://bitcoinwisdom.com/ • https://zeroblock.com/ • https://coindesk.com • http://bfxdata.com

Books

• Trend Following - Michael Covel http://amzn.to/1mAthZW

• Trading for a Living: Psychology, Trading Tactics and Money Management http://amzn.to/1uc2e0T

Binary Financial

• Hedge Fund • Electronic Trading, Market Making • Facilitate Large Block Trades with High Net

Worth Clients and Institutions • Trusted Counter Party • Investments

Contact

• http://linkedin.com/in/harryyeh

• info@binaryfin.com

• http://twitter.com/harryyeh

• http://twitter.com/binaryfin

Q & A

Thank YouThe North American Bitcoin

Conference! (and Moe)