Limitations of Trading Alerts
Before utilizing any trade alert system it’s important to know what they can, and cannot do well for you.
Trade alerts are triggered by a software program designed to monitor thousands of technical data points every second. This leads them to be good at performing technical analysis, but not as great at fundamental analysis.
How This Affects Your Trading
Alerts can replace 99% of your chart reading, waiting and technical analysis. For best results, you should have your own fundamental analysis performed prior to receiving and trading on any alert. This puts you in position to make the best trading decisions.
The simplest example of this, is staying up to date on the news about a specific cryptocurrency and/or the market in general. Knowing this will often lead you to know if the price will move out of its standard pattern. If the price moves out of its standard pattern, alerts will likely fire that you would best skip.
The most recent examples of this has been the monthly CPI, PPI or even payrolls report the Federal Reserve looks at when determining interest rates.
What To Do After Receiving A Crypto Alert
Here is my quick 3-step process of what to do after receiving an alert, which greatly increases the profitability of this strategy
STEP ONE: Read & Review It
For best trading results, you’ll set up your phone to receive notifications of alerts as fast as possible. Once you get an alert, review the ASSET, PRICE and pull up the price chart to get an idea of it’s price direction.
STEP TWO: Confirm It
Every trader has their own way of reviewing a potential trade. We like using chart patterns. Whatever methods make you feel comfortable placing trades, we recommend limiting yourself to 5 minutes to make a decision. Any more then that has shown no increase in profitability.
STEP THREE: Place Trade
You’ll place the trade directly on your brokerage account yourself. This site is just an alert service, we do not place trades for you and we do not handle financial transactions or your money.
Rule – Only enter a trade at the same or better price then the alert
BONUS STEP FOUR: Risk Management
Every successful trading strategy has a carefully calculated risk management strategy. This tells you when to Exit a trade either with a ‘Take Profit’ or a ‘Stop Loss’ transaction.
Before placing the trade, be sure to know when you will exit when it goes up or down.
The trading algorithm does recommend take profit & stop loss settings with each trade. Before providing public access to that we want you to understand how the settings are calculated. We will be adding a link to this explainer here, with directions on how to access the proper risk management settings in the near future.