Hello cryptocurrency traders, Bitcoin enthusiasts as well as forex traders and welcome to my Bitcoin - Forex Combo Strategy. Cryptocurrencies, with Bitcoin leading the push, started to expand following the last global financial in 2008. They were meant to break with the old monetary and centralized financial system. Fast forward a few years, I received my first Bitcoins on October 12th 2017 at $5,000. Initially I was not interested in joining the crypto craze, but the firm who engaged me for some freelance work was unable to pay me in cash as it as tied up in some legal proceedings. They did offer to pay me in Bitcoin and I accepted after sleeping over it. That’s how my journey with Bitcoin began.
I was obviously very excited as the timing could have not been better. The next three months basically saw Bitcoin surge to roughly $20,000. All the talk of it eclipsing $50,000 and even $100,000 as soon as 2018 had me all-in on “cryptomania”! My digital balance just increased by over 400%, a gain I have never experienced with any other venture I was part of, especially not in this short time period. I already made plans with what I will do once the price of Bitcoin reaches $100,000 and I cash out. My 2.5 Bitcoins would have been worth $250,000, a quarter of a million, which would have been enough for me to retire at the age of 42.
Now, that was a great game of hypothetical actions. Reality looked different and I am glad that I received this reality check as it allowed me to re-enter the real world and eventually to the creation of my Bitcoin - Forex Combo Strategy. I have several charts which I will share with you in order for you to better understand my thought process and why I am doing what I am doing. I hope this will help others make the most of their digital assets and create a dual revenue stream which you can count on.
Please take a look at the red rectangle on the left hand side of the below chart. This is when I realized that the bubble may burst. The period from December 18th 2017 through December 22nd 2017 was my wake-up call. I still held on to my 2.5 Bitcoins until January 8th 2018 which is marked by the red cross-hair . At this point I decided to sell my Bitcoins at a price of $15,000. Let me clarify this, I did not sell them directly but rather deposited them into my PaxForex Trading Account.
Why did I decide to do this?
- Forex trading, like cryptocurrency trading, is decentralized and therefore a great suitor for a combo strategy.
- Diversification is one key element to consider, especially as your assets grow in size.
- PaxForex is a market leading forex broker, outside of non-sense regulators like the EU which means I can still enjoy great leverage when I trade which is important to boost my overall profitability. Just take a look at all the EU regulated brokers and how they were forced to change at a great cost to traders.
- PaxForex not only offers the ability to make deposits and withdrawals using Bitcoin, but also allows me to trade BTCUSD if I like.
- PaxForex offers free trading signals based on technical as well as fundamental aspects which can be accessed at PaxForex Daily Fundamental Analysis and PaxForex Daily Forex Technical Analysis. This formed the core of my forex related strategy.
Now I had a PaxForex trading account funded with $37,500 (2.5 Bitcoins deposited at $15,000). I decided to get out at $15,000 because it represented an increase of 300% since I received them at $5,000. This concluded the fist part of my Bitcoin - Forex Combo Strategy. Now I decided to enlist PaxForex and its expert analysts for their wisdom on what to do in the forex market and how to navigate it. I opted for maximum leverage of 1:500 as I wanted to make sure I get maximum profit potential.
On January 9th 2018, I followed a buy recommendation in the EURAUD. I bought 5 lots at 1.5250, my required margin for the trade was $1,157.20 and each pip was worth $35.80. I closed the trade on February 2nd 2018 at 1.5700 for a total profit of 450 pips or $16,110. You can take a look at the chart below which outlines the steps I took and view the original analysis at EURAUD Fundamental Analysis – January 9th 2018.
On January 10th 2018 I added a GBPUSD long position to my account. I bought 5 lots at 1.3520, my required margin was $1,301.40 and each pip was worth $50.00. I closed this trade on January 23rd at 1.4000 for a total profit of 480 pips or $24,000. The original trading recommendation can be found at GBPUSD Fundamental Analysis – January 10th 2018 and the chart below shows the trade.
I took my final trade in this first series on January 12th which was a short position in the USDJPY. I sold 5 lots at 111.100, my required margin was $1,000 and each pip was worth $43.91. On February 6th 2018 I closed this trade at 108.600 for a total profit of 250 pips or $10,977.50. I closed this trade slightly before the recommended take profit level which can be found at the original analysis at USDJPY Fundamental Analysis – January 12th 2018 and I will explain why in a moment. You can view my trade in the chart below.
I started my account with $37,500 and decided to divide it into three equal section worth $12,500 so I could execute three different forex trades at the same time. The reason I traded 5 lots each is because it ensured I had $2,500 per traded lot. It is part of my risk management. Many forex traders think they have to trade many currency pairs and then settle on high lots to compensate the lack of capital in order to get higher returns. This is very dangerous. Increase your lot sizes as your account grows, be patient.
I closed the last trade a bit early as I needed the money in order to execute the second-part of my Bitcoin - Forex Combo Strategy which is buying Bitcoin after the price drops. I wanted back in at $7,500 which is where I saw a solid support for an advance. My PaxForex Account Balance stood at just shy of $87,000 which is all my profits minus the swap rates. My gross balance was $88,587.50. I bought 11.5 Bitcoin at $7,500 for a total of $86,250. You can see the full Bitcoin cycle in the chart below.
My three trades I executed with the help of PaxForex analysts grossed me $51,087.50. Compare this to simply holding my initial 2.5 Bitcoins through this period. My balance would have been $18,750 on February 6th 2018 when I re-entered the cryptocurrency market. With the help of my Bitcoin - Forex Combo Strategy and PaxForex, I now have 11.5 Bitcoins worth $86,250 plus pocket change in my trading account. Stay tuned for the Part 2 of my series on how I use cryptocurrencies and the forex market in a combo which ensures my assets grow.