Hello and welcome back everyone! Since last week’s update “Bitcoin - Forex Combo Strategy: Crypto Index Product Launch”, where I discussed the launch of a new Ethereum based exchange traded product (ETP) listed on the main Swiss stock exchange, price action has been quiet and stable. This is a good thing as we don’t want those crazy moves which we saw as the bubble boomed and burst, leading to what is now known as the crypto winter. It appears that most solid cryptocurrencies have been carving out a nice long-term support level while some exciting new comers are gaining momentum which is reflected in their price appreciation. I think 2019 will mark the year where cryptocurrencies will no longer move based on the price of Bitcoin. As more and more professional traders have entered the market and replaced headline chasing new traders, those assets with potential to be monetized are likely to outperform while the rest will fall in value or disappear.
As you may be aware, a lot of analysts and traders are looking for the ext catalysts which will drive cryptocurrencies higher. This will be largely on the back of new net demand and in order to generate demand, existing markets need to be expanded and new markets created. There have been a lot of positive developments in this regards and I have explained some key developments in my posts “Bitcoin - Forex Combo Strategy: Cryptocurrency Acceptance Grows” and “Bitcoin - Forex Combo Strategy: P2P Record Volume Spike”. Creating new markets is crucial and Ripple took the first step in adding a $140 billion per year industry to it’s sphere of influence: the global gaming industry. Applying blockchain technology to gaming has the potential to drastically alter the game ecnomy and open the doors to gamers who spend hours per day to cash in on their hard in-game work. This may also open up a new front for game developers who will focus on creating games where players are rewarded in cryptocurrency.
In 2018 Ripple launched a program called Xpring with the mission to develop infrastructure for new and innovative blockchain project as well as to enhance cooperation between different companies active in this sector. Ripple wants to further strengthen the community it serves and allow developers to enhance the deployment of blockchain projects. Interledger and XRP Ledger are at the core of the Xpring program which has now entered into a partnership with Forte, a San Francisco based firm which develops blockchain solutions for the gaming industry. This opens up a new frontier for the blockchain and could increase demand for cryptocurrencies which will cater to the gaming sector. This is indeed a great step forward for Ripple which is working hard to enter new markets. Other companies may follow suit and create healthy competition across the scope.
Under the partnership, a $100M fund will be created. Ripple will provide all the financing for it while Forte will manage it. The primary goal of the fund is to support developers and to push for mass adoption of the blockchain across the global gaming industry which will further monetize the Ripple universe. The gaming industry is set to benefit from the blockchain as it will help to create better in-game economies where gamers can monetize their time spend. Developers are also set to benefit, but many find it challenging to implement the blockchain into their work. The Xpring-Forte partnership is set out to change this and open up a new frontier for the blockchain where it sets to dominate.
The Xpring-Forte fund will initially target developers who operate game economies of over 50,000 daily gamers. Forte exclusively uses the open-source Interledger Protocol where Ripple serves as the settlement cryptocurrency. Forte’s Chief Platform Officer Brett Seyler stated that “Blockchain technologies’ key innovations unlock vast potential for nearly all forms of digital interaction. Gaming is a $140 billion global industry driven predominantly by digital micro-transaction economies, which we believe will benefit immensely from the integrity and resilience of blockchain technology.” Xpring Senior VP Ethan Beard added “We are thrilled to partner with such a world class team of game industry veterans. Both Forte and Ripple have a shared belief that blockchain technology will have a massive impact on games, and that providing tools that are easy-to-use, chain agnostic and interoperable is a necessary step in driving scale consumer adoption.”
Over the past week Bitcoin has essentially traded flat with little price action across most of the cryptocurrency space. This sideways trend has been good as it allowed technical indicators to pull back from extreme overbought conditions. I believe the next rally will take Bitcoin back above the $4,000 level which bodes well for my 200 Bitcoins carrying an average entry price of $4,315. Yesterday, March 12th 2019, I added 2,400,000 Ripple at $0.3000 to my 600,000 Ripple which I was already hodling. This brought my total to 3,000,0000 Ripple and has also reduced my average entry price down to $0.3075. In addition a hodl my 7,500 Ethers at an entry price of $120.00 as I re-entered this asset last week. I think Ripple and Ethereum have great long-term growth potential while Bitcoin can be compared to "Digital Gold" as I have outlined in this post "Bitcoin-Forex Combo Strategy: Digital Gold".The three images below show my overall crypto positions.
As expected, Gold has pushed back above the key psychological mark of $1,300.00 with bullish momentum expanding. I think we may extend this advance until we test the most recent intra-day high of $1,346.49 from where a breakout may keep this rally alive. I will keep my 40 lots of Gold which I bought at $1,282.00 for a margin requirement of $51,408 and with a pip value of $40.00. The image below shows my entry.
As I closed last week’s update, I had four open forex positions. I have closed three of them for a profit while one remains opens with a stop loss in placed for a guaranteed profit. On March 7th 2019 I closed my 75 lots short position in the AUDCHF at 0.7075 as my stop loss was triggered. This resulted in a trading profit of 75 pips or $55,989. A wild ride in the British Pound resulted in closures of both my related trades. On March 11th 2019 the stop loss was triggered in my 75 lots GBPUSD short position at 1.3000. My trade was closed for a profit of 260 pips or $195,000. On the same day the stop loss was also triggered in my 75 lots EURGBP long position at 0.8650. This trade was closed for a profit of 60 pips or $59,168. The three images show the three complete trades.
I keep my 75 lots short position in the USDCAD open and have adjusted my stop loss to 1.3350. This guarantees me a profit of 75 pips or $41,889. The margin requirement for this trade was $15,000 with a pip value of $558.52. I may exit this trade if we drop to 1.3300, but will make a final decision if a breakdown below this level occurs. The image below shows my trade plus the adjusted stop loss level.
On March 7th 2019 I took a rare swing trade in the EURUSD. First I took a 100 lots short position at 1.1265. The sharp drop resulted in my take profit target being triggered at 1.1180 for a profit of 85 pips or $85,000. I then took a 100 lots long position at 1.1180, just shy of the intra-day low, for a margin requirement of $22,619 with a pip value of $1,000. You can find the trading recommendation at “EURUSD Fundamental Analysis – March 7th 2019”. I have adjusted my stop loss for this long position to 1.1280 for a guaranteed profit of 100 pips or $100,000. The image below shows my open EURUSD long position.
This was the only new position I added to my forex portfolio as I believe the Canadian Dollar has more room to strengthen which is why I skipped this trade “EURCAD Fundamental Analysis – March 8th 2019”. I am staying away from the Japanese Yen “USDJPY Fundamental Analysis – March 8th 2019” as well as British Pound “GBPAUD Fundamental Analysis – March 12th 2019” until more Brexit related information is available. For the time being, I don’t feel comfortable taking that risk. It is better to skip a few trades and remain comfortable with your portfolio than to rush into each recommendation and load up on uncertainty.
Here is the update for my overall portfolio: I hodl 200 Bitcoins worth $760,040, 3,000,000 Ripple worth $913,800 and 7,500 Ether worth $951,375. In addition I have 40 lots of Gold worth $149,008 and a total cash balance of $1,814,256. Rounding up my portfolio is a 75 lots short position in the USDCAD worth $71,969 and a 100 lots long position worth $143,619. My total portfolio is therefore worth $4,804,067, up 484,983 as compared to last week and at a new all-time high. Let’s see if my next update will push the balance above the $5M mark. I am inviting you to join me at PaxForex where I execute my Bitcoin - Forex Combo Strategy. Besides a rock solid trading strategy, there is nothing more important to a trader than a trusted forex broker. Open your PaxForex Trading Account now and grow your balance with my strategy at the same time you grow your trust in PaxForex!