Category Archives: Bitcoin (BTC) Algorithm (Crypto)

Introduction.

This year we’ve seen Bitcoin soar up more than 700% YTD and find its’ way out of the “Silk Road” obscurity and into the minds and portfolios of some of the biggest players on Wall Street. Naturally, you want in on these mind boggling returns – but when you log into the trading platform you have been using for years, you realize you can’t find $BTCUSD, $XBTUSD or any Bitcoin-linked equities on the traditional markets. You give your broker a call and they are no help, so you do a quick google search and find a million different articles telling you which Bitcoin exchanges are the best. After reading a few, you realize many of these are out of date, and most of them are simply advertisements written by the creators of the exchange and disguised as informational articles. There is information overload and you don’t know who you can trust when it comes to these exchanges. That is where most people give up, trying to answer the seemingly simple question: “how do I get started?”

Finally, we have a simple answer for you. This step by step guide will show you exactly how to set up an account with a safe, credible Bitcoin exchange so you can start trading as soon as possible. Depending on how you choose to fund your account, you can be trading in as little as 30 minutes!

Why Trust Us?

We have no affiliation whatsoever with any Bitcoin exchange. The exchanges featured in this post are only featured because we have personally used them with success, or one of our Bitcoin trade room members uses them and has given good feedback. Along with that, we have done extensive research into these exchanges before suggesting them to anyone. The goal of this post is to save you the time and trouble of doing that research so you can just start trading.

Exchanges:

The exchanges we use and trust are Coinbase, Bitstamp and Gemini. Each has their own advantages/disadvantages that I will list below. We also use the BitMEX exchange to trade leveraged Bitcoin derivative contracts. Please be aware that BitMEX has residency restrictions listed in their terms of service agreement. I would suggest reading over the terms of service before beginning to use any of these exchanges to ensure compliance. 

What you need to know:

CoinBase: Coinbase is a U.S. based exchange that is great for those who want easy, quick sign up and the ability to buy Cryptocurrencies to hold as a long term investment/store of value. However, there are some fundamental flaws that keep it from being the best option for active traders.

Bitstamp: Bitstamp is a E.U. based exchange with good liquidity and an easy to use trading platform that is good for both active traders and long term investors. Our original $BTCUSD model was built on a Bitstamp chart. I highly recommend Bitstamp for those who cannot trade on a leveraged platform such as BitMEX.

Gemini: Gemini is a U.S. based exchange that is regulated by the New York State Department and like Bitstamp, has an intuitive trading platform that works well for both active traders and long term investors alike.

BitMEX: BitMEX is a Seychelles based cryptocurrency derivatives trading platform whose most popular product is their $XBTUSD Bitcoin/USD inverse perpetual swap contract. BitMEX is a traders dream – brilliantly designed and well thought out platform offering 100x leverage with tons of liquidity. There is nothing else out there like it.

 The Fastest Way to Get Started (That I’ve Found, at Least): Coinbase + BitMEX 

1. Go to coinbase.com (Sign up through this link to get a bonus $10 worth of Bitcoin). If you go through this link, your screen will look like this:

2. Enter your first name, last name, email address and a password to create your account.

3. Verify your email address by clicking the link in the email sent by Coinbase. It should bring you to a screen that looks like this:

4. Choose “individual” and click next.

5. Enter your phone number for two factor authentication and click next.

6. Enter the code sent to your phone to finish creating your account. It should bring you to a screen that looks like this:

7. Find the “complete your account” section toward the bottom left of the page. Click on “verify your identity”. This menu will pop up:

8. Upload a picture of your preferred ID. Verification should happen in less than 5 minutes.

9. Choose a payment method to fund your account. The fastest is Credit/Debit card – you can purchase Bitcoin instantly this way, but only $300 at a time to start. If you want to start off with more, you can buy up to $10,000 using a bank transfer.

10. Go to bitmex.com and click “register”. This screen should come up:

11. Enter an email address, password and name then click register.

12. Confirm your email address by opening the link sent by BitMEX.

13. Open the “account” tab and click deposit.

14. Copy your BitMEX wallet ID then reopen Coinbase.

15. On Coinbase, click the accounts tab then under “BTC wallet” click send:

16. Paste your BitMEX wallet ID into the space. Make sure you double check that it is the correct wallet ID, then click send.

Your deposit should show up in BitMEX within 30-45 minutes and you are ready to trade! This can be done with any of the exchanges I mentioned above (not just Coinbase) however I used Coinbase for the example because their verification and funding is the fastest/easiest.

Hopefully this post helps answer your questions regarding how to get into trading Bitcoin and Cryptos in general. If you still have questions feel free to contact us on Twitter @CompoundTrading or @CryptotheAlgo

Peace and best everyone,

– Crypto Lead

Crypto the Bitcoin Algorithm Newsletter Tuesday October 31, 2017  #Bitcoin $BTCUSD $XBTUSD $BTC $BITCF $BTCS $BTSC $GBTC

Hello! My name is Crypto the Bitcoin Algo. Welcome to the member edition Bitcoin trade report for Compound Trading.

Like our other algorithmic chart models, I am in development and testing for coding phase to be used as an intelligent assistant for our traders (not HFT). My charting model is specifically suitable for the use and purpose of trading Bitcoin $BTCUSD, Bitcoin/USD perpetual swaps $XBTUSD and Bitcoin related equities.

Note: The model for $BTCUSD is built on a chart from the Bitstamp exchange. The $XBTUSD model is built on a chart from BitMEX. Prices on other exchanges may vary slightly from what you see on the model, so remember to keep that in mind when trading the model.

Notices: 

• Sorry for the delay in reporting this week – I have been sick the last few days but feeling better now. Thanks everyone for the patience and well wishes. 
• Our team has been killing it in the discord room! Awesome to see that coming together. 
• There is some significant resistance above the current area of trade. I am expecting either a breakout or pullback coming up soon. Details listed below. 
• Join us in our private Crypto Trading room on discord! Curt, Sartaj and I have been team trading as well as posting TONS of supplemental charting in there. 
• We have been trading $XBTUSD (BTC/USD Inverse perpetual swap contracts) on BitMEX.
  • $XBTUSD moves with $BTCUSD so trade alerts are still valid for $BTCUSD, however the prices will vary slightly.
• Welcome our lead trader to the platform! You will now be receiving alerts from Curt as well as myself.
• You can read my blog post about how to trade Bitcoin here. I will post an update with more information about BitMEX as soon as I can.
• 24 hour trade room on discord is gaining traction – A few things to keep in mind going in:
  • Curt, Sartaj and I will be #TeamTrading this in a very serious way.
  • #TeamTrading is key in a 24-hour room like this. No one can watch the model 24/7 (trust me I’ve tried) but as a team we can catch all of the best trades.
  • To make this work we need an orderly chat room, full of highly functioning people, all trading together.
  • In Curt’s words, the accuracy of the model plus the margins on Bitcoin combined with #TeamTrading will take this thing from Compound Trading to “uber quantum leap compound trading.” If done right, our ROI will be absolutely astronomical.
  • We will have a private Discord room for Cryptocurrency trading as well. I plan to use the voice channel to enhance our #TeamTrading and I hope many of you will join me in there.
  • As always, don’t hesitate to DM me on twitter (@reedshermanator) if you have any questions, comments, concerns, etc.

Primary Methods of Trade: 

Live Twitter Alert Feed for Bitcoin Trades: @BTCAlerts_CT

The primary method of trade we have found works with the most predictability is to wait for bitcoin to breach the upper right wall of a quadrant (the orange or grey diagonal dotted lines – the thicker orange lines are more significant) and confirm over the next horizontal Fibonacci resistance. You can expect to get to reach the midline of the upper quadrant – over the midline you can expect it to reach the next quadrant wall. Entering this trade near the apex of a quadrant gives you the widest trading range.

This method also works in reverse: Wait for Bitcoin to breach downward through the upper left wall of a quadrant, or fail when trying to breach upward through the upper left quadrant wall. Let it confirm under the next horizontal support and you can expect to see the midline of the quadrant – under the midline you can expect to see the next quadrant wall. Same as above, entering this trade near the apex of a quadrant gives you the widest trading range.

Channels: Another high probability trade is entering long as price rides up the bottom right wall of an orange quadrant. This is a safe trade to hold with a stop under the quad wall until the current time cycle expires. This trade works in reverse as well. You can enter short just under the upper right quadrant wall resistance, with a stop just over the quadrant wall, and hold until the current time cycle expires.

Horizontal Fibonacci Support/Resistance: The horizontal support/resistance lines are good indicators to use inside quadrants. The light green 0.5 Fibonacci line and the grey 1.0 or 0 fibonacci levels (midlines) are the most significant. Clusters of these lines represent significant support/resistance as well. Intersections of horizontal and diagonal Fibonacci lines represent an upcoming decision and create a high probability of a significant move out of sideways trade.

Resistance Clusters: Along with the algorithm indicators on the chart there are traditional support/resistance lines that are very important. When these lines converge volatility tends to increase. Under the cluster is a high probability short. If it does get through the cluster it becomes a very high probability long scenario as the HFT algos cover their shorts and load up long. The most recent cluster corresponded with the run over $3,000 to all time highs.

Targets: Red circles on charting. These are placed at the 2 most likely prices at the end of each 75-hour time cycle. These are still in very early stage of development/testing and should be used for observation only at this point. Two are provided for each quadrant time frame – the upper scenario targets should be considered if the trend is up and likewise for the lower. Only one is expected to hit on each time cycle. These targets have been less predictable with the recent market volatility. I do not recommend entering trades based on these targets.

Natural Support/Resistance: Natural support/resistance is represented on the chart by purple horizontal lines. Although generally reliable, these are not a great indicator in the current area of trade because they rely on history, and Bitcoin lacks that history over $3,000. The recent pullback has helped solidify natural support/resistance lines in the model. There are some significant natural resistance areas forming in the chart. Thicker natural resistance lines on the chart are the most significant. 

Conventional Charting: In the last newsletter, I said that we have had success using some of our conventional indicators. That has not changed – however, we have refined our system and cut out most of the lagging indicators. The conventional indicators we have been using are:

• The 20, 50, 100 and 200 MA’s on all timeframes
• Conventional trendlines
• Conventional natural support/resistance

Bitcoin Algorithm Live Charting Link:

$BTCUSD: https://www.tradingview.com/chart/BTCUSD/CkZlmvRM-Crypto-the-BTC-algo-updated-charting-18-47-17-EST-31-Oct-2017/

$XBTUSD: https://www.tradingview.com/chart/XBTUSD/Ej07wUry-Crypto-XBT-updated-charting-18-49-15-31-Oct-2017/ 

In summary, our first generation Bitcoin algorithm chart model uses the following indicators (listed from most predictable to least in terms of win rate): 

1. Trading range created by long term algorithmic modeled quadrant support and resistance (orange dotted lines)
2. Trading range created by short term algorithmic modeled quadrant support and resistance (grey dotted lines)
3. Directional channels formed by long term algorithmic modeled support and resistance
4. Horizontal Fibonacci support and resistance (multi-colored horizontal lines)
5. Conventional Natural support and resistance (purple horizontal lines)
6. Long term conventional trend lines (red diagonal lines)
7. Conventional MA’s 

Observations in the current area of trade:

$BTCUSD has established quad wall support on the daily chart. Over the next quad wall I would expect it to start gapping up:

$BTCUSD appears to have found a new upchannel following last week’s correction: 

$BTCUSD upcoming time/price cycle and targets/decision points:

$BTCUSD up against conventional trendline resistance – last time it failed at this resistance we saw a somewhat significant correction:

$XBTUSD conventional charting shows current area of trade:

$XBTUSD appears to have established a new upchannel following last week’s correction: 

$XBTUSD daily quadrants show quad wall and midline established as support: 

$XBTUSD up against significant conventional trendline resistance. I am expecting either a breakout or pullback very soon. My bias is still long for the time being:

$XBTUSD last time this trendline was tested a correction followed:

More Examples of High Probability Trades in the Model: 

• Below is a textbook example of the highest probability trade in the model (break of the upper right quad wall). Trades like this are repeatable and extremely predictable in the model.

• Below is an example of a trade over a resistance cluster (and break of the quad wall). Notice the huge volume when the resistance cluster is breached. I went long on new candle over the quad wall/resistance cluster, added over the midline and exited at the upper quad wall.

• Below is a trade using both the large orange quadrants and the smaller grey quadrants. First trigger is breach of the (shared) quad wall, then confirmed over the midline in the small quad. Struggled a bit with the next quad wall (I use tight stops when playing the smaller quadrants) but eventually got to my target at the midline.

• Although the targets are still in very early development phase, we did get a direct target hit down to the second on August 22. Also a good example of a short opportunity as it enters the quadrant from the upper left and loses its mid line. Then another good long opportunity as it enters the small quadrant through the lower left wall, shown by the white arrows:

• I’m not on the short side too often, but I will do it when the upper left quad wall is breached to the downside. Another high probability trade in the model, this one live tweeted:

Covered 4029.00

— Reed Sherman (@reedshermanator) August 16, 2017

Covered 3981.97

— Reed Sherman (@reedshermanator) August 16, 2017

• The best ROI comes when trade moves between quadrants, but we can do some intraday scalping off the quad wall too.

Long $BTCUSD 4003.00

— Reed Sherman (@reedshermanator) August 21, 2017

Closed all 4061.23

— Reed Sherman (@reedshermanator) August 21, 2017

• And another live tweeted win on the break of a quad wall:

Closed 4624.24 $BTCUSD

— Reed Sherman (@reedshermanator) August 31, 2017

Long $BTCUSD 4630.21

— Reed Sherman (@reedshermanator) August 31, 2017

Crypto the Bitcoin Algorithm Newsletter Monday October 23, 2017  #Bitcoin $BTCUSD $XBTUSD $BTC $BITCF $BTCS $BTSC $GBTC

Hello! My name is Crypto the Bitcoin Algo. Welcome to the member edition Bitcoin trade report for Compound Trading.

Like our other algorithmic chart models, I am in development and testing for coding phase to be used as an intelligent assistant for our traders (not HFT). My charting model is specifically suitable for the use and purpose of trading Bitcoin $BTCUSD, Bitcoin/USD perpetual swaps $XBTUSD and Bitcoin related equities.

Note: The model for $BTCUSD is built on a chart from the Bitstamp exchange. The $XBTUSD model is built on a chart from BitMEX. Prices on other exchanges may vary slightly from what you see on the model, so remember to keep that in mind when trading the model.

Notices: 

• There is a relatively significant update to our most predictable trades this week. The specific changes will be outlined below. 
• I have decided to exclude the second generation beta model from the newsletter for the time being. We want to provide our members with only the most reliable and tested models and that model has not been testing to our preferred standards. However, a true next gen model is in the works. 
• Join us in our private Crypto Trading room on discord! Curt, Sartaj and I have been team trading as well as posting TONS of supplemental charting in there. 
• We have been trading $XBTUSD (BTC/USD Inverse perpetual swap contracts) on BitMEX.
  • $XBTUSD moves with $BTCUSD so trade alerts are still valid for $BTCUSD, however the prices will vary slightly.
• Welcome our lead trader to the platform! You will now be receiving alerts from Curt as well as myself.
• You can read my blog post about how to trade Bitcoin here. I will post an update with more information about BitMEX as soon as I can.
• 24 hour trade room on discord is gaining traction – A few things to keep in mind going in:
  • Curt, Sartaj and I will be #TeamTrading this in a very serious way.
  • #TeamTrading is key in a 24-hour room like this. No one can watch the model 24/7 (trust me I’ve tried) but as a team we can catch all of the best trades.
  • To make this work we need an orderly chat room, full of highly functioning people, all trading together.
  • In Curt’s words, the accuracy of the model plus the margins on Bitcoin combined with #TeamTrading will take this thing from Compound Trading to “uber quantum leap compound trading.” If done right, our ROI will be absolutely astronomical.
  • We will have a private Discord room for Cryptocurrency trading as well. I plan to use the voice channel to enhance our #TeamTrading and I hope many of you will join me in there.
  • As always, don’t hesitate to DM me on twitter (@reedshermanator) if you have any questions, comments, concerns, etc.

Primary Methods of Trade: 

Live Twitter Alert Feed for Bitcoin Trades: @BTCAlerts_CT

The primary method of trade we have found works with the most predictability is to wait for bitcoin to breach the upper right wall of a quadrant (the orange or grey diagonal dotted lines – the thicker orange lines are more significant) and confirm over the next horizontal Fibonacci resistance. You can expect to get to reach the midline of the upper quadrant – over the midline you can expect it to reach the next quadrant wall. Entering this trade near the apex of a quadrant gives you the widest trading range.

This method also works in reverse: Wait for Bitcoin to breach downward through the upper left wall of a quadrant, or fail when trying to breach upward through the upper left quadrant wall. Let it confirm under the next horizontal support and you can expect to see the midline of the quadrant – under the midline you can expect to see the next quadrant wall. Same as above, entering this trade near the apex of a quadrant gives you the widest trading range.

Channels: Another high probability trade is entering long as price rides up the bottom right wall of an orange quadrant. This is a safe trade to hold with a stop under the quad wall until the current time cycle expires. This trade works in reverse as well. You can enter short just under the upper right quadrant wall resistance, with a stop just over the quadrant wall, and hold until the current time cycle expires.

Horizontal Fibonacci Support/Resistance: The horizontal support/resistance lines are good indicators to use inside quadrants. The light green 0.5 Fibonacci line and the grey 1.0 or 0 fibonacci levels (midlines) are the most significant. Clusters of these lines represent significant support/resistance as well. Intersections of horizontal and diagonal Fibonacci lines represent an upcoming decision and create a high probability of a significant move out of sideways trade.

Resistance Clusters: Along with the algorithm indicators on the chart there are traditional support/resistance lines that are very important. When these lines converge volatility tends to increase. Under the cluster is a high probability short. If it does get through the cluster it becomes a very high probability long scenario as the HFT algos cover their shorts and load up long. The most recent cluster corresponded with the run over $3,000 to all time highs.

Targets: Red circles on charting. These are placed at the 2 most likely prices at the end of each 75-hour time cycle. These are still in very early stage of development/testing and should be used for observation only at this point. Two are provided for each quadrant time frame – the upper scenario targets should be considered if the trend is up and likewise for the lower. Only one is expected to hit on each time cycle. These targets have been less predictable with the recent market volatility. I do not recommend entering trades based on these targets.

Natural Support/Resistance: Natural support/resistance is represented on the chart by purple horizontal lines. Although generally reliable, these are not a great indicator in the current area of trade because they rely on history, and Bitcoin lacks that history over $3,000. The recent pullback has helped solidify natural support/resistance lines in the model. There are some significant natural resistance areas forming in the chart. Thicker natural resistance lines on the chart are the most significant. 

Conventional Charting: In the last newsletter, I said that we have had success using some of our conventional indicators. That has not changed – however, we have refined our system and cut out most of the lagging indicators. The conventional indicators we have been using are:

• The 20, 50, 100 and 200 MA’s on all timeframes
• Conventional trendlines
• Conventional natural support/resistance

Bitcoin Algorithm Live Charting Link:

$BTCUSD: https://www.tradingview.com/chart/BTCUSD/5KFSec1t-BTCUSD-Updated-Charting-19-36-41-EST-23-Oct-2017/

$XBTUSD: https://www.tradingview.com/chart/XBTUSD/ycjKHpzi-XBTUSD-Updated-Charting-19-33-18-EST-23-Oct-2017/

In summary, our first generation Bitcoin algorithm chart model uses the following indicators (listed from most predictable to least in terms of win rate): 

1. Trading range created by long term algorithmic modeled quadrant support and resistance (orange dotted lines)
2. Trading range created by short term algorithmic modeled quadrant support and resistance (grey dotted lines)
3. Directional channels formed by long term algorithmic modeled support and resistance
4. Horizontal Fibonacci support and resistance (multi-colored horizontal lines)
5. Conventional Natural support and resistance (purple horizontal lines)
6. Long term conventional trend lines (red diagonal lines)
7. Conventional MA’s 

A little recap of this past week:

We had another great week team trading in discord! We took advantage of the increased volatility in the area of all time highs and banked big time, again. 

Getting this framed and maybe a tattoo $BTC #cryptolove $XBTUSD https://t.co/vwq01zeDCF

— Curtis Melonopoly (@curtmelonopoly) October 15, 2017

Its happening…. then before ya know it we’ll be spelling million with a B ? https://t.co/YB7T7ixVKY

— Reed Sherman (@reedshermanator) October 16, 2017

Ohhhhh my $XBTUSD 100 x leveraged love just does not stop. Just WOW. Bank on the way down bank on the up. Every time??? 24 hrs $BTC #crypto

— Curtis Melonopoly (@curtmelonopoly) October 18, 2017

Chart porn event in Bitcoin $XBTUSD $BTC #crypto pic.twitter.com/a2BGPAJIN7

— Curtis Melonopoly (@curtmelonopoly) October 23, 2017

Observations in the current area of trade:

$BTCUSD daily quadrants show a decision coming soon. After coming off both a conventional trend line and quadrant wall, establishing that quad wall as support is crucial:

$BTCUSD Falling out of the upward trending channel it has traded in since mid September. Important decision point coming up at tonight’s time cycle expiry – the picture below shows possible channel options:

$BTCUSD upcoming time/price cycle and targets/decision points:

$XBTUSD conventional charting shows current area of trade:

$XBTUSD has reached an important decision point as it attempts to regain the channel it has traded in since mid September – Possible up and down channel options are shown below: 

$XBTUSD daily quadrants show imminent decision point: 

• The 50% extension level at 6070 area is key. Once that level can be established as support, price should continue its’ upward trend.
• Quadrant walls here are also very important. I would be very cautious anytime 

$XBTUSD imminent decision point scenarios:

• If price does not make it through the apex here (red arrow) back into it’s up channel, the most likely scenario is that it will continue into the down channel, shown by the purple arrows on the chart.

$XBTUSD hit a wall when at a cluster of conventional trend lines from the daily chart:

More Examples of High Probability Trades in the Model: 

• Below is a textbook example of the highest probability trade in the model (break of the upper right quad wall). Trades like this are repeatable and extremely predictable in the model.

• Below is an example of a trade over a resistance cluster (and break of the quad wall). Notice the huge volume when the resistance cluster is breached. I went long on new candle over the quad wall/resistance cluster, added over the midline and exited at the upper quad wall.

• Below is a trade using both the large orange quadrants and the smaller grey quadrants. First trigger is breach of the (shared) quad wall, then confirmed over the midline in the small quad. Struggled a bit with the next quad wall (I use tight stops when playing the smaller quadrants) but eventually got to my target at the midline.

• Although the targets are still in very early development phase, we did get a direct target hit down to the second on August 22. Also a good example of a short opportunity as it enters the quadrant from the upper left and loses its mid line. Then another good long opportunity as it enters the small quadrant through the lower left wall, shown by the white arrows:

• I’m not on the short side too often, but I will do it when the upper left quad wall is breached to the downside. Another high probability trade in the model, this one live tweeted:

Covered 4029.00

— Reed Sherman (@reedshermanator) August 16, 2017

Covered 3981.97

— Reed Sherman (@reedshermanator) August 16, 2017

• The best ROI comes when trade moves between quadrants, but we can do some intraday scalping off the quad wall too.

Long $BTCUSD 4003.00

— Reed Sherman (@reedshermanator) August 21, 2017

Closed all 4061.23

— Reed Sherman (@reedshermanator) August 21, 2017

• And another live tweeted win on the break of a quad wall:

Closed 4624.24 $BTCUSD

— Reed Sherman (@reedshermanator) August 31, 2017

Long $BTCUSD 4630.21

— Reed Sherman (@reedshermanator) August 31, 2017

Crypto the Bitcoin Algorithm Newsletter Sunday October 15th, 2017  #Bitcoin $BTCUSD $XBTUSD $BITCF $BTCS $BTSC $GBTC

Hello! My name is Crypto the Bitcoin Algo. Welcome to the member edition Bitcoin trade report for Compound Trading.

Like our other algorithmic chart models, I am in development and testing for coding phase to be used as an intelligent assistant for our traders (not HFT). My charting model is specifically suitable for the use and purpose of trading Bitcoin $BTCUSD, Bitcoin/USD perpetual swaps $XBTUSD and Bitcoin related equities.

Note: The model for $BTCUSD is built on a chart from the Bitstamp exchange. The $XBTUSD model is built on a chart from BitMEX. Prices on other exchanges may vary slightly from what you see on the model, so remember to keep that in mind when trading the model.

Notices: 

• Join us in our private Crypto Trading room on discord! Curt, Sartaj and I have been team trading as well as posting TONS of supplemental charting in there. 
• There will be a link to a second generation $XBTUSD model I have been working on in this newsletter. It is still in beta testing phase, so please keep that in mind if you choose to use it. I do not recommend entering trades based on that chart alone. 
• We have found that adding our “B Theme” indicators (Stoch RSI, MACD and SQZMOM) to the model is very helpful. If you aren’t familiar with these indicators, there are tons of videos on our YouTube channel that explain them in detail.
  • These indicators are: The 20, 50, 100 and 200 MA’s, VWAP, Stochastic RSI and a Squeeze Momentum indicator (specific to Tradingview).
• We have been trading $XBTUSD (BTC/USD Inverse perpetual swap contracts) on BitMEX.
  • $XBTUSD moves with $BTCUSD so trade alerts are still valid for $BTCUSD, however the prices will vary slightly.
• Welcome our lead trader to the platform! You will now be receiving alerts from Curt as well as myself.
• You can read my blog post about how to trade Bitcoin here. I will post an update with more information about BitMEX as soon as I can.
• 24 hour trade room on discord is gaining traction – A few things to keep in mind going in:
  • Curt, Sartaj and I will be #TeamTrading this in a very serious way.
  • #TeamTrading is key in a 24-hour room like this. No one can watch the model 24/7 (trust me I’ve tried) but as a team we can catch all of the best trades.
  • To make this work we need an orderly chat room, full of highly functioning people, all trading together.
  • In Curt’s words, the accuracy of the model plus the margins on Bitcoin combined with #TeamTrading will take this thing from Compound Trading to “uber quantum leap compound trading.” If done right, our ROI will be absolutely astronomical.
  • We will have a private Discord room for Cryptocurrency trading as well. I plan to use the voice channel to enhance our #TeamTrading and I hope many of you will join me in there.
  • As always, don’t hesitate to DM me on twitter (@reedshermanator) if you have any questions, comments, concerns, etc.

Primary Methods of Trade: 

Live Twitter Alert Feed for Bitcoin Trades: @BTCAlerts_CT

The primary method of trade we have found works with the most predictability is to wait for bitcoin to breach the upper right wall of a quadrant (the orange or grey diagonal dotted lines – the thicker orange lines are more significant) and confirm over the next horizontal Fibonacci resistance. You can expect to get to reach the midline of the upper quadrant – over the midline you can expect it to reach the next quadrant wall. Entering this trade near the apex of a quadrant gives you the widest trading range.

This method also works in reverse: Wait for Bitcoin to breach downward through the upper left wall of a quadrant, or fail when trying to breach upward through the upper left quadrant wall. Let it confirm under the next horizontal support and you can expect to see the midline of the quadrant – under the midline you can expect to see the next quadrant wall. Same as above, entering this trade near the apex of a quadrant gives you the widest trading range.

Channels: Another high probability trade is entering long as price rides up the bottom right wall of an orange quadrant. This is a safe trade to hold with a stop under the quad wall until the current time cycle expires. This trade works in reverse as well. You can enter short just under the upper right quadrant wall resistance, with a stop just over the quadrant wall, and hold until the current time cycle expires.

Horizontal Fibonacci Support/Resistance: The horizontal support/resistance lines are good indicators to use inside quadrants. The light green 0.5 Fibonacci line and the grey 1.0 or 0 fibonacci levels (midlines) are the most significant. Clusters of these lines represent significant support/resistance as well. Intersections of horizontal and diagonal Fibonacci lines represent an upcoming decision and create a high probability of a significant move out of sideways trade.

Resistance Clusters: Along with the algorithm indicators on the chart there are traditional support/resistance lines that are very important. When these lines converge volatility tends to increase. Under the cluster is a high probability short. If it does get through the cluster it becomes a very high probability long scenario as the HFT algos cover their shorts and load up long. The most recent cluster corresponded with the run over $3,000 to all time highs.

Targets: Red circles on charting. These are placed at the 2 most likely prices at the end of each 75-hour time cycle. These are still in very early stage of development/testing and should be used for observation only at this point. Two are provided for each quadrant time frame – the upper scenario targets should be considered if the trend is up and likewise for the lower. Only one is expected to hit on each time cycle. These targets have been less predictable with the recent market volatility. I do not recommend entering trades based on these targets.

Natural Support/Resistance: Natural support/resistance is represented on the chart by purple horizontal lines. Although generally reliable, these are not a great indicator in the current area of trade because they rely on history, and Bitcoin lacks that history over $3,000. The recent pullback has helped solidify natural support/resistance lines in the model. There are some significant natural resistance areas forming in the chart. Thicker natural resistance lines on the chart are the most significant. 

Conventional Charting: Recently we have been using more conventional indicators to supplement the model with great success. A few indicators I have found especially reliable are:

• The 200 MA on the 30 minute chart: Price breaching the 200 MA to the upside is a reliable indicator for a long entry, especially with the 20, 50 and 100 below. A breach of the 200 to the downside is also a reliable indicator for a short.
• The 20 MA on the 15 minute chart: Price confirming over the 20 MA ,or the 20 MA coming up to price from below, are high probability indicators for upward movement. 
• Stochastic RSI: Useful on all time frames, the longer time frames carrying more weight of course. When looking for a long entry, wait for the stoch RSI to bottom. When it begins to curl up off the bottom, make your entry. This strategy gives a high probability of getting the “power” part of the trade right. 
• VWAP: I have noticed that VWAP acts as significant support/resistance in Bitcoin. Loss of VWAP is a high probability short. 

Bitcoin Algorithm Live Charting Link:

$BTCUSD: https://www.tradingview.com/chart/BTCUSD/oWS3nIBA-BTCUSD-Updated-Charting-02-03-48-EST-16-Oct-2017/

$XBTUSD: https://www.tradingview.com/chart/XBTUSD/aFaVIEGE-XBTUSD-Updated-Charting-02-07-59-EST-16-Oct-2017/

$XBTUSD Gen 2 BETA: https://www.tradingview.com/chart/XBTUSD/3UQl6V0u-XBTUSD-Gen-2-Beta/

In summary, our first generation Bitcoin algorithm chart model uses the following indicators (listed from most predictable to least in terms of win rate): 

1. Trading range created by long term algorithmic modeled quadrant support and resistance (orange dotted lines)
2. Trading range created by short term algorithmic modeled quadrant support and resistance (grey dotted lines)
3. Directional channels formed by long term algorithmic modeled support and resistance
4. Horizontal Fibonacci support and resistance (multi-colored horizontal lines)
5. Conventional Natural support and resistance (purple horizontal lines)
6. Long term conventional trend lines (red diagonal lines)
7. Conventional MA’s and MACD

A little recap of this past week:

We had an AWESOME week of trading as Bitcoin blew through ATH’s again! And we saw it coming from a mile away:

$XBTUSD Daily 100 x leverage love machine with a right ear sidewinder setting up ohhh my ohhhh my. $BTC #Crypto Boom time x 100 on deck. pic.twitter.com/qr3FhXyUNH

— Curtis Melonopoly (@curtmelonopoly) October 10, 2017

$XBTUSD $BTCUSD #Bitcoin BOOM ? pic.twitter.com/DKOGaeKcqp

— Reed Sherman (@reedshermanator) October 12, 2017

Started week with boom town… BOOM! haha #cryptolove $XBTUSD $BTC #Bitcoin pic.twitter.com/TVjxTalBgV

— Curtis Melonopoly (@curtmelonopoly) October 15, 2017

And now we have evidence that Curt is, in fact, addicted to #cryptotrading:

Yep… at dinner and we needed our laptops last night? our companions loved that?100 x the love? $XBTUSD $BTC #CRYPTO pic.twitter.com/AKdaabKWnW

— Curtis Melonopoly (@curtmelonopoly) October 13, 2017

Observations in the current area of trade:

$BTCUSD daily quadrants helped predict run to all time highs (again):

$BTCUSD Still trading within a predictable upward trending channel since the end of September. Used full range as it blew through ATH’s. My bias remains long until this channel is lost to the down side:

Close up view of the current channel. Upper wall should be treated as significant resistance, downside wall should be treated as significant support:

$BTCUSD upcoming time/price cycle and targets/decision points:

$BTCUSD conventional charting shows current area of trade:

$XBTUSD tried to leave its current channel but tonight’s correction brought it back into expected range. This quad wall should be seen as significant resistance to the upside and significant support to the downside:

$XBTUSD upcoming time/price cycle and targets/decision points:

Our “right ear sidewinder” setup played out just as planned – straight vertical through all time highs: 

$XBTUSD move to ATH’s corresponded with our daily quadrants as well: 

A sneak peak at our 2nd generation model for $XBTUSD:

More Examples of High Probability Trades in the Model: 

• Below is a textbook example of the highest probability trade in the model (break of the upper right quad wall). Trades like this are repeatable and extremely predictable in the model.

• Below is an example of a trade over a resistance cluster (and break of the quad wall). Notice the huge volume when the resistance cluster is breached. I went long on new candle over the quad wall/resistance cluster, added over the midline and exited at the upper quad wall.

• Below is a trade using both the large orange quadrants and the smaller grey quadrants. First trigger is breach of the (shared) quad wall, then confirmed over the midline in the small quad. Struggled a bit with the next quad wall (I use tight stops when playing the smaller quadrants) but eventually got to my target at the midline.

• Although the targets are still in very early development phase, we did get a direct target hit down to the second on August 22. Also a good example of a short opportunity as it enters the quadrant from the upper left and loses its mid line. Then another good long opportunity as it enters the small quadrant through the lower left wall, shown by the white arrows:

• I’m not on the short side too often, but I will do it when the upper left quad wall is breached to the downside. Another high probability trade in the model, this one live tweeted:

Covered 4029.00

— Reed Sherman (@reedshermanator) August 16, 2017

Covered 3981.97

— Reed Sherman (@reedshermanator) August 16, 2017

• The best ROI comes when trade moves between quadrants, but we can do some intraday scalping off the quad wall too.

Long $BTCUSD 4003.00

— Reed Sherman (@reedshermanator) August 21, 2017

Closed all 4061.23

— Reed Sherman (@reedshermanator) August 21, 2017

• And another live tweeted win on the break of a quad wall:

Closed 4624.24 $BTCUSD

— Reed Sherman (@reedshermanator) August 31, 2017

Long $BTCUSD 4630.21

— Reed Sherman (@reedshermanator) August 31, 2017

Crypto the Bitcoin Algorithm Newsletter Tuesday October 10th, 2017  #Bitcoin $BTCUSD $XBTUSD $BITCF $BTCS $BTSC $GBTC

Hello! My name is Crypto the Bitcoin Algo. Welcome to the member edition Bitcoin trade report for Compound Trading.

Like our other algorithmic chart models, I am in development and testing for coding phase to be used as an intelligent assistant for our traders (not HFT). My charting model is specifically suitable for the use and purpose of trading Bitcoin $BTCUSD, Bitcoin/USD perpetual swaps $XBTUSD and Bitcoin related equities.

Note: The model for $BTCUSD is built on a chart from the Bitstamp exchange. The $XBTUSD model is built on a chart from BitMEX. Prices on other exchanges may vary slightly from what you see on the model, so remember to keep that in mind when trading the model.

Notices: 

• I appreciate everyone’s patience with the inconsistent reporting schedule thus far. As many of you know, I am still in school which makes my schedule hectic at times. That being said, you can expect the newsletter in your inbox every Sunday night/Monday morning going forward.
• Join us in our private Crypto Trading room on discord! Curt, Sartaj and I have been team trading as well as posting supplemental charting in there. 
• There are some changes to the most predictable trades this week. These changes will be highlighted in red.  
• We have found that adding our “B Theme” indicators (Stoch RSI, MACD and SQZMOM) to the model is very helpful. If you aren’t familiar with these indicators, there are tons of videos on our YouTube channel that explain them in detail.
  • These indicators are: The 20, 50, 100 and 200 MA’s, VWAP, Stochastic RSI and a Squeeze Momentum indicator (specific to Tradingview).
• We have been trading $XBTUSD (BTC/USD Inverse perpetual swap contracts) on BitMEX.
  • $XBTUSD moves with $BTCUSD so trade alerts are still valid for $BTCUSD, however the prices will vary slightly.
• Welcome our lead trader to the platform! You will now be receiving alerts from Curt as well as myself.
• You can read my blog post about how to trade Bitcoin here. I will post an update with more information about BitMEX as soon as I can.
• 24 hour trade room will be up and running very soon – A few things to keep in mind going in:
  • Curt, Sartaj and I will be #TeamTrading this in a very serious way.
  • #TeamTrading is key in a 24-hour room like this. No one can watch the model 24/7 (trust me I’ve tried) but as a team we can catch all of the best trades.
  • To make this work we need an orderly chat room, full of highly functioning people, all trading together.
  • In Curt’s words, the accuracy of the model plus the margins on Bitcoin combined with #TeamTrading will take this thing from Compound Trading to “uber quantum leap compound trading.” If done right, our ROI will be absolutely astronomical.
  • We will have a private Discord room for Cryptocurrency trading as well. I plan to use the voice channel to enhance our #TeamTrading and I hope many of you will join me in there.
  • As always, don’t hesitate to DM me on twitter (@reedshermanator) if you have any questions, comments, concerns, etc.

Primary Methods of Trade: 

Live Twitter Alert Feed for Bitcoin Trades: @BTCAlerts_CT

The primary method of trade we have found works with the most predictability is to wait for bitcoin to breach the upper right wall of a quadrant (the orange or grey diagonal dotted lines – the thicker orange lines are more significant) and confirm over the next horizontal Fibonacci resistance. You can expect to get to reach the midline of the upper quadrant – over the midline you can expect it to reach the next quadrant wall. Entering this trade near the apex of a quadrant gives you the widest trading range.

This method also works in reverse: Wait for Bitcoin to breach downward through the upper left wall of a quadrant, or fail when trying to breach upward through the upper left quadrant wall. Let it confirm under the next horizontal support and you can expect to see the midline of the quadrant – under the midline you can expect to see the next quadrant wall. Same as above, entering this trade near the apex of a quadrant gives you the widest trading range.

Channels: Another high probability trade is entering long as price rides up the bottom right wall of an orange quadrant. This is a safe trade to hold with a stop under the quad wall until the current time cycle expires. This trade works in reverse as well. You can enter short just under the upper right quadrant wall resistance, with a stop just over the quadrant wall, and hold until the current time cycle expires.

Horizontal Fibonacci Support/Resistance: The horizontal support/resistance lines are good indicators to use inside quadrants. The light green 0.5 Fibonacci line and the grey 1.0 or 0 fibonacci levels (midlines) are the most significant. Clusters of these lines represent significant support/resistance as well. Intersections of horizontal and diagonal Fibonacci lines represent an upcoming decision and create a high probability of a significant move out of sideways trade.

Resistance Clusters: Along with the algorithm indicators on the chart there are traditional support/resistance lines that are very important. When these lines converge volatility tends to increase. Under the cluster is a high probability short. If it does get through the cluster it becomes a very high probability long scenario as the HFT algos cover their shorts and load up long. The most recent cluster corresponded with the run over $3,000 to all time highs.

Targets: Red circles on charting. These are placed at the 2 most likely prices at the end of each 75-hour time cycle. These are still in very early stage of development/testing and should be used for observation only at this point. Two are provided for each quadrant time frame – the upper scenario targets should be considered if the trend is up and likewise for the lower. Only one is expected to hit on each time cycle. These targets have been less predictable with the recent market volatility. I do not recommend entering trades based on these targets.

Natural Support/Resistance: Natural support/resistance is represented on the chart by purple horizontal lines. Although generally reliable, these are not a great indicator in the current area of trade because they rely on history, and Bitcoin lacks that history over $3,000. The recent pullback has helped solidify natural support/resistance lines in the model. There are some significant natural resistance areas forming in the chart. Thicker natural resistance lines on the chart are the most significant. 

Conventional Charting: Recently we have been using more conventional indicators to supplement the model with great success. A few indicators I have found especially reliable are:

• The 200 MA on the 30 minute chart: Price breaching the 200 MA to the upside is a reliable indicator for a long entry, especially with the 20, 50 and 100 below. A breach of the 200 to the downside is also a reliable indicator for a short.
• The 20 MA on the 15 minute chart: Price confirming over the 20 MA ,or the 20 MA coming up to price from below, are high probability indicators for upward movement. 
• Stochastic RSI: Useful on all time frames, the longer time frames carrying more weight of course. When looking for a long entry, wait for the stoch RSI to bottom. When it begins to curl up off the bottom, make your entry. This strategy gives a high probability of getting the “power” part of the trade right. 
• VWAP: I have noticed that VWAP acts as significant support/resistance in Bitcoin. Loss of VWAP is a high probability short. 

Bitcoin Algorithm Live Charting Link:

$BTCUSD: https://www.tradingview.com/chart/BTCUSD/6awNYwri-Crypto-Updated-Charting-03-11-46-EST-10-Oct-2017/

$XBTUSD: https://www.tradingview.com/chart/XBTUSD/QOFr2FV1-XBTUSD-Updated-Charting-03-46-29-EST-10-Oct-2017/

In summary, our first generation Bitcoin algorithm chart model uses the following indicators (listed from most predictable to least in terms of win rate): 

1. Trading range created by long term algorithmic modeled quadrant support and resistance (orange dotted lines)
2. Trading range created by short term algorithmic modeled quadrant support and resistance (grey dotted lines)
3. Directional channels formed by long term algorithmic modeled support and resistance
4. Horizontal Fibonacci support and resistance (multi-colored horizontal lines)
5. Conventional Natural support and resistance (purple horizontal lines)
6. Long term conventional trend lines (red diagonal lines)
7. Conventional MA’s and MACD

Observations in the current area of trade:

$BTCUSD Trading within a predictable upward trending channel since the end of September. My bias continues to be long as $BTCUSD pushes toward all time highs:

Upcoming time/price cycle and targets/decision points:

$BTCUSD following a 3 legs up, 1 leg down pattern. If the pattern continues we will see #Bitcoin at all time highs in the next few days:

$XBTUSD continues to trade within this upward trending channel:

Upcoming time/price cycle targets for $XBTUSD: 

Our “right ear sidewinder” setup is playing out on the $XBTUSD daily chart. The 20 MA crossing over the 50 may be enough to push price through all time highs.

Beautiful symmetry in the $XBTUSD chart. Perfect bull and horns setup played out last week: 

 An extremely high probability trade in the $XBTUSD model comes up any time trade returns to test a quad wall. These are almost always good for a $20-$30 quick scalp or more. High probability scalps are great trades with up to 100x leverage on BitMEX: 

More Examples of High Probability Trades in the Model: 

• Below is a textbook example of the highest probability trade in the model (break of the upper right quad wall). Trades like this are repeatable and extremely predictable in the model.

• Below is an example of a trade over a resistance cluster (and break of the quad wall). Notice the huge volume when the resistance cluster is breached. I went long on new candle over the quad wall/resistance cluster, added over the midline and exited at the upper quad wall.

• Below is a trade using both the large orange quadrants and the smaller grey quadrants. First trigger is breach of the (shared) quad wall, then confirmed over the midline in the small quad. Struggled a bit with the next quad wall (I use tight stops when playing the smaller quadrants) but eventually got to my target at the midline.

• Although the targets are still in very early development phase, we did get a direct target hit down to the second on August 22. Also a good example of a short opportunity as it enters the quadrant from the upper left and loses its mid line. Then another good long opportunity as it enters the small quadrant through the lower left wall, shown by the white arrows:

• I’m not on the short side too often, but I will do it when the upper left quad wall is breached to the downside. Another high probability trade in the model, this one live tweeted:

Covered 4029.00

— Reed Sherman (@reedshermanator) August 16, 2017

Covered 3981.97

— Reed Sherman (@reedshermanator) August 16, 2017

• The best ROI comes when trade moves between quadrants, but we can do some intraday scalping off the quad wall too.

Long $BTCUSD 4003.00

— Reed Sherman (@reedshermanator) August 21, 2017

Closed all 4061.23

— Reed Sherman (@reedshermanator) August 21, 2017

• And another live tweeted win on the break of a quad wall:

Closed 4624.24 $BTCUSD

— Reed Sherman (@reedshermanator) August 31, 2017

Long $BTCUSD 4630.21

— Reed Sherman (@reedshermanator) August 31, 2017

Crypto the Bitcoin Algorithm Newsletter Friday September 22, 2017  #Bitcoin $BTCUSD $XBTUSD $BITCF $BTCS $BTSC $GBTC

Hello! My name is Crypto the Bitcoin Algo. Welcome to the member edition Bitcoin trade report for Compound Trading.

Like our other algorithmic chart models, I am in development and testing for coding phase to be used as an intelligent assistant for our traders (not HFT). My charting model is specifically suitable for the use and purpose of trading Bitcoin $BTCUSD, Bitcoin/USD perpetual swaps $XBTUSD and Bitcoin related equities.

Note: The model for $BTCUSD is built on a chart from the Bitstamp exchange. The $XBTUSD model is built on a chart from BitMEX. Prices on other exchanges may vary slightly from what you see on the model, so remember to keep that in mind when trading the model.

Notices: 

• If you have had trouble running the model on your computer, I have good news for you! I have created a “lite” version of the model that should run on almost any computer. I will attach the link below the regular updated charting.
• There are some changes to the most predictable trades this week. These changes will be highlighted in red.  
• We have found that adding our “B Theme” indicators (Stoch RSI, MACD and SQZMOM) to the model is very helpful. If you aren’t familiar with these indicators, there are tons of videos on our YouTube channel that explain them in detail.
• Our model for BitMEX: XBTUSD (perpetual swaps) is here! We will mainly be trading on BitMEX from here on out.
• $XBTUSD moves with $BTCUSD so trade alerts are still valid for $BTCUSD, however the prices will vary slightly.
• Welcome our lead trader to the platform! You will now be receiving alerts from Curt as well as myself.
• A few of us had a great time team trading on mic in the Crypto Discord room last Wednesday night. I plan to be in there a few nights this week, if there are certain nights that would work best for you feel free to message me on twitter @reedshermanator and I’ll do my best to accommodate everyone.
• You can read my blog post about how to trade Bitcoin here. I will post an update with more information about BitMEX as soon as I can.
• 24 hour trade room will be up and running very soon – A few things to keep in mind going in:
  • Curt, Sartaj and I will be #TeamTrading this in a very serious way.
  • #TeamTrading is key in a 24-hour room like this. No one can watch the model 24/7 (trust me I’ve tried) but as a team we can catch all of the best trades.
  • To make this work we need an orderly chat room, full of highly functioning people, all trading together.
  • In Curt’s words, the accuracy of the model plus the margins on Bitcoin combined with #TeamTrading will take this thing from Compound Trading to “uber quantum leap compound trading.” If done right, our ROI will be absolutely astronomical.
  • We will have a private Discord room for Cryptocurrency trading as well. I plan to use the voice channel to enhance our #TeamTrading and I hope many of you will join me in there.
  • As always, don’t hesitate to DM me on twitter (@reedshermanator) if you have any questions, comments, concerns, etc.

Primary Methods of Trade: 

Live Twitter Alert Feed for Bitcoin Trades: @BTCAlerts_CT

Alerts members: Welcome our lead trader @curtmelonopoly to the feed! ??? pic.twitter.com/mz0L1VM9GS

— Crypto the BTC Algo (@CryptotheAlgo) September 17, 2017

The primary method of trade we have found works with the most predictability is to wait for bitcoin to breach the upper right wall of a quadrant (the orange or grey diagonal dotted lines – the thicker orange lines are more significant) and confirm over the next horizontal Fibonacci resistance. You can expect to get to reach the midline of the upper quadrant – over the midline you can expect it to reach the next quadrant wall. Entering this trade near the apex of a quadrant gives you the widest trading range.

Throughout the current downtrend, the most predictable trade has been quick scalps when prices falls to the quad wall and bounces. This is especially useful when trading $XBTUSD because small scalps can really add up with (up to) 100x leverage on trades. An example of this is shown at the bottom of this week’s updates.

This method also works in reverse: Wait for Bitcoin to breach downward through the upper left wall of a quadrant, or fail when trying to breach upward through the upper left quadrant wall. Let it confirm under the next horizontal support and you can expect to see the midline of the quadrant – under the midline you can expect to see the next quadrant wall. Same as above, entering this trade near the apex of a quadrant gives you the widest trading range.

Channels: Another high probability trade is entering long as price rides up the bottom right wall of an orange quadrant. This is a safe trade to hold with a stop under the quad wall until the current time cycle expires. This trade works in reverse as well. You can enter short just under the upper right quadrant wall resistance, with a stop just over the quadrant wall, and hold until the current time cycle expires.

Horizontal Fibonacci Support/Resistance: The horizontal support/resistance lines are good indicators to use inside quadrants. The light green 0.5 Fibonacci line and the grey 1.0 or 0 fibonacci levels (midlines) are the most significant. Clusters of these lines represent significant support/resistance as well. Intersections of horizontal and diagonal Fibonacci lines represent an upcoming decision and create a high probability of a significant move out of sideways trade.

Resistance Clusters: Along with the algorithm indicators on the chart there are traditional support/resistance lines that are very important. When these lines converge volatility tends to increase. Under the cluster is a high probability short. If it does get through the cluster it becomes a very high probability long scenario as the HFT algos cover their shorts and load up long. The most recent cluster corresponded with the run over $3,000 to all time highs.

Targets: Red circles on charting. These are placed at the 2 most likely prices at the end of each 75-hour time cycle. These are still in very early stage of development/testing and should be used for observation only at this point. Two are provided for each quadrant time frame – the upper scenario targets should be considered if the trend is up and likewise for the lower. Only one is expected to hit on each time cycle. These targets have been less predictable with the recent market volatility. I do not recommend entering trades based on these targets.

Natural Support/Resistance: Natural support/resistance is represented on the chart by purple horizontal lines. Although generally reliable, these are not a great indicator in the current area of trade because they rely on history, and Bitcoin lacks that history over $3,000. The recent pullback has helped solidify natural support/resistance lines in the model. There are some significant natural resistance areas forming in the chart. Thicker natural resistance lines on the chart are the most significant. 

Conventional Charting: All decisions should be weighed against conventional charting (which is generally provided as well).

Bitcoin Algorithm Live Charting Link:

$BTCUSD: https://www.tradingview.com/chart/BTCUSD/NW2hDynp-Crypto-Updated-Charting-21-19-EST-22-Sept-2017/

$XBTUSD: https://www.tradingview.com/chart/XBTUSD/lRjKVC3v-XBTUSD-Updated-Charting-22-01-31-EST-22-Sept-2017/

$BTCUSD (Lite Version): https://www.tradingview.com/chart/BTCUSD/sgXBZOw9-Crypto-Lite-Version-22-Sept-2017/

In summary, our first generation Bitcoin algorithm chart model uses the following indicators (listed from most predictable to least in terms of win rate): 

1. Trading range created by long term algorithmic modeled quadrant support and resistance (orange dotted lines)
2. Trading range created by short term algorithmic modeled quadrant support and resistance (grey dotted lines)
3. Directional channels formed by long term algorithmic modeled support and resistance
4. Horizontal Fibonacci support and resistance (multi-colored horizontal lines)
5. Conventional Natural support and resistance (purple horizontal lines)
6. Long term conventional trend lines (red diagonal lines)
7. Conventional MA’s and MACD

Observations in the current area of trade:

$BTCUSD currently at a decision point. The most likely up and down channels are highlighted below:

Upcoming time/price cycle and targets/decision points:

$BTCUSD model has been very precise of late:

Pay attention to the conventional trend line above, it has worked as significant resistance in the recent past: 

There is a resistance cluster coming up on September 28. Expected added volatility around this time:

Conventional charting shows $BTCUSD current area of trade, including resistance cluster. Also, MACD on the daily chart is pinching and could cross any day: 

$XBTUSD upcoming time/price cycle targets. A bit of a wider range here to compensate for increased volatility:

$XBTUSD resistance cluster in the model:

Conventional charting shows $XBTUSD upcoming resistance cluster: 

 An extremely high probability trade in the $XBTUSD model comes up any time trade returns to test a quad wall. These are almost always good for a $20-$30 quick scalp or more. High probability scalps are great trades with up to 100x leverage on BitMEX: 

More Examples of High Probability Trades in the Model: 

• Below is a textbook example of the highest probability trade in the model (break of the upper right quad wall). Trades like this are repeatable and extremely predictable in the model.

• Below is an example of a trade over a resistance cluster (and break of the quad wall). Notice the huge volume when the resistance cluster is breached. I went long on new candle over the quad wall/resistance cluster, added over the midline and exited at the upper quad wall.

• Below is a trade using both the large orange quadrants and the smaller grey quadrants. First trigger is breach of the (shared) quad wall, then confirmed over the midline in the small quad. Struggled a bit with the next quad wall (I use tight stops when playing the smaller quadrants) but eventually got to my target at the midline.

• Although the targets are still in very early development phase, we did get a direct target hit down to the second on August 22. Also a good example of a short opportunity as it enters the quadrant from the upper left and loses its mid line. Then another good long opportunity as it enters the small quadrant through the lower left wall, shown by the white arrows:

• I’m not on the short side too often, but I will do it when the upper left quad wall is breached to the downside. Another high probability trade in the model, this one live tweeted:

Covered 4029.00

— Reed Sherman (@reedshermanator) August 16, 2017

Covered 3981.97

— Reed Sherman (@reedshermanator) August 16, 2017

• The best ROI comes when trade moves between quadrants, but we can do some intraday scalping off the quad wall too.

Long $BTCUSD 4003.00

— Reed Sherman (@reedshermanator) August 21, 2017

Closed all 4061.23

— Reed Sherman (@reedshermanator) August 21, 2017

• And another live tweeted win on the break of a quad wall:

Closed 4624.24 $BTCUSD

— Reed Sherman (@reedshermanator) August 31, 2017

Long $BTCUSD 4630.21

— Reed Sherman (@reedshermanator) August 31, 2017