investment strategies in bitcoin
TRANSCRIPT
Investment Strategies in Bitcoin
Harry Yeh Binary Financial
http://binaryfin.com @harryyeh
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
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
• http://twitter.com/harryyeh
• http://twitter.com/binaryfin
Q & A
Thank YouThe North American Bitcoin
Conference! (and Moe)