We’ve been stopped out at breakeven

We’ve been stopped out at breakeven 300 169 Minimalist Trading – Best Trading Indicators for TradingView

We’ve been stopped out at breakeven

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Introduction

Today we’re looking at another trading setup using our technical indicators, which are considered to be among the best indicators for TradingView. In particular, we’re using the Breakout Pivotal Bars in combination with the Levels and Zones, and the Sentiment Index.

After performing the crypto technical analysis using our TradingView indicators, which by many traders are considered the best bitcoin indicators, we identify a potential downtrend continuation with a technical setup almost identical to several more short setups that happened just recently. To make the trade worthwhile in terms of risk reward, we set the stop loss level a bit lower than we should technically set it however, we’ll balance this additional risk by lowering the breakeven level as the price goes down.

Trade setup – 26 Feb 2020

We've been stopped out at breakeven Setup 1

The price is in a major downtrend and has already offered two similar opportunities to the one that we’re looking to trade here.

We just had a new impulse down followed by its consolidation that’s taking place.

We just need to wait and see if the price breaks the consolidation down and the indicators confirm the setup as well.

Trade update – 26 Feb 2020

We've been stopped out at breakeven Setup 2

We have the setup because:

    1. The price broke down the consolidation that we isolated
    2. The breakdown candle is red (colored by the Breakout Pivotal Bars)
    3. The bearish Sentiment Index breaks down its trendline at the same time

We set the stop loss rather close and we also stay on the aggressive side with the target level.

This is because we want the trade to be worthwhile which, to us, means to have at least a risk-reward ratio of 2.

Of course, we’ll balance the extra risk by trading safely and moving the stop loss to breakeven first, and then moving the breakeven even lower as the price goes down.

Trade update – 26 Feb 2020

We've been stopped out at breakeven Setup 3

The price moved down and then retraced a little bit.

As anticipated, we already moved the stop loss to breakeven so that we’re now in a risk-free trade.

Trade closed – 26 Feb 2020

We've been stopped out at breakeven Setup 4

Unfortunately, the price made a sudden up movement and hit our stop loss which, in the meantime, was lowered further.

That’s trading and we accept it!

The trade started very well but then eventually hit our break-even level during a sudden price retracement. The final return was 0.8x which is rather poor for our crypto strategy but still profitable which is great because, in the end, the first rule you should always stick to is not to lose money. Once in a while, situations like this happen but you shouldn’t care too much, because it’s part of trading and if you want to become a professional trader, you must accept even a 0.8x profit.