Learn to Trade Profitably with Trader Cobb 1

Learn to Trade Profitably with Trader Cobb

Trading
• Digitex Futures
August 10, 2020

If you read Fridays blog post, then youll know we have a stellar lineup of educational content coming for the DFE. Trading profitably is both an art and a science, but anyone can learn it, given the right tools. Here, we dive into whats coming up starting this week, from pro trader and educator, Trader Cobb. Read to the end to also find out whats coming up this week on the DFE.

Craig Cobb, better known as Trader Cobb, is one of the best-known pro traders and crypto trading educators in the business. He has over 15 years of experience, having started out in the traditional markets trading forex pairs, stocks, bonds, and commodities.

For the last three years, he’s been fully dedicated to cryptocurrency trading. With over 10,000 students around the world, there is nobody better to help you unravel the mysteries of scalp trading on the Digitex Futures exchange.

Over the course of four separate webinar sessions, Craig will teach you the tools he has learned to use over his 15-year trading career. These tools will help you increase your chances of trading success, decrease your loss risk, and take emotions out of the process so you’ll trade based on facts.

You’ll receive a complete trading strategy with a checklist to follow as you go. You’ll also get a trading business plan. Craig is a firm believer that trading isn’t just about charts – you should treat it as you would a business. So you’ll also get a trading business plan to help you as you transition from developing your trading hobby into a business.

How to Join

The best news is that joining Craig’s webinars is completely free! There are only two simple prerequisites. Firstly, you’ll need to have an account on the Digitex Futures exchange so that you can follow along with the webinar instructions. Secondly, you should sign up for the webinar on the dedicated registration page.

That’s it! All you then need to do is turn up on the dates, and watch and learn as Craig unveils his trading strategy over four separate sessions.

Webinar Schedule of Events

The full schedule of events is as follows. Please note that as Craig is broadcasting from his home in Australia, the timezones given are in Australian Eastern Standard Time (AEST). We’ve provided times here in UTC too.

Part 1: High Probability

Thursday, August 13, 2020, 9 pm AEST/11 am UTC

Every building needs solid foundations, and your trading business and plan need the same. This chapter will help you to plan out the type of trader you will become and provide you the blueprint that you will create with Craig’s guidance to move forward through the chapters. Trading is a business and we need to plan it!

Part 2: Master Price Action

Thursday, August 20, 2020, 9 pm AEST/11 am UTC

When you bake a cake you need to know the ingredients for that cake, you don’t need to know about cooking a lasagna. Craig will focus you on the ingredients needed to bake the perfect trade – process-driven, outcome-based, and zero emotions. You’ve got that here.

Part 3: The Crypto Cradle Strategy

Thursday, August 27, 2020, 9 pm AEST/11 am UTC

This is what most people have been waiting for! In parts 1 and 2, you have set out to plan the type of trader you wish to be and learned the ingredients to be ready for this part 3.

You’re now ready to learn and use the “Crypto Cradle” strategy; arguably the most common trading set up out there.

Part 4: Management of Risk, Mindset, and Progress

Thursday, September 3, 2020, 9 pm AEST/11 am UTC

You have the strategy from the first three webinar episodes of this series, you have the scans and watch list videos, and now it’s about keeping your headstrong and keeping the account growing!

Especially if you’re new to trading or scalping, you don’t want to miss this series. Make sure you sign up before the start time to secure your slot and share it with any of your friends who want to learn more about profitable scalp trading on the DFE!

What’s Coming Up This Week on the DFE

Along with Craig’s webinars, we have some much-anticipated updates to the DFE being rolled out this week. First up, the API will be launched on mainnet, allowing algorithmic traders to plug in their bots and trade automatically for the first time. We know that the API has been in demand ever since we started onboarding traders to the mainnet, and we’re looking forward to the further injection of liquidity that it will bring to the DFE. Watch the blog for a video from Cryptrader explaining how to use it.

Secondly, we explained last week that we are closing the Digitex Treasury and replacing it with the DGTX Converter. The Converter will allow users to deposit a variety of cryptocurrencies, including BTC, ETH, and USDT, onto the DFE and convert them to DGTX so they can start trading with zero fees.

The development team has been working extremely hard to bring this to life, and we’re pleased to confirm it will go live on the testnet later this week. As soon as it’s proving to work without any issue, we will migrate it to the mainnet.

Keep watching the blog for more updates about DFE features and functionality, as they happen. And if you want more information about what to expect, check out our recently published roadmap, which lays out everything still to come in 2020. Stay tuned!

August 10, 2020
Trading

Learn to Trade Profitably with Trader Cobb

Digitex Futures
Learn to Trade Profitably with Trader Cobb 2

If you read Fridays blog post, then youll know we have a stellar lineup of educational content coming for the DFE. Trading profitably is both an art and a science, but anyone can learn it, given the right tools. Here, we dive into whats coming up starting this week, from pro trader and educator, Trader Cobb. Read to the end to also find out whats coming up this week on the DFE.

Craig Cobb, better known as Trader Cobb, is one of the best-known pro traders and crypto trading educators in the business. He has over 15 years of experience, having started out in the traditional markets trading forex pairs, stocks, bonds, and commodities.

For the last three years, he’s been fully dedicated to cryptocurrency trading. With over 10,000 students around the world, there is nobody better to help you unravel the mysteries of scalp trading on the Digitex Futures exchange.

Over the course of four separate webinar sessions, Craig will teach you the tools he has learned to use over his 15-year trading career. These tools will help you increase your chances of trading success, decrease your loss risk, and take emotions out of the process so you’ll trade based on facts.

You’ll receive a complete trading strategy with a checklist to follow as you go. You’ll also get a trading business plan. Craig is a firm believer that trading isn’t just about charts – you should treat it as you would a business. So you’ll also get a trading business plan to help you as you transition from developing your trading hobby into a business.

How to Join

The best news is that joining Craig’s webinars is completely free! There are only two simple prerequisites. Firstly, you’ll need to have an account on the Digitex Futures exchange so that you can follow along with the webinar instructions. Secondly, you should sign up for the webinar on the dedicated registration page.

That’s it! All you then need to do is turn up on the dates, and watch and learn as Craig unveils his trading strategy over four separate sessions.

Webinar Schedule of Events

The full schedule of events is as follows. Please note that as Craig is broadcasting from his home in Australia, the timezones given are in Australian Eastern Standard Time (AEST). We’ve provided times here in UTC too.

Part 1: High Probability

Thursday, August 13, 2020, 9 pm AEST/11 am UTC

Every building needs solid foundations, and your trading business and plan need the same. This chapter will help you to plan out the type of trader you will become and provide you the blueprint that you will create with Craig’s guidance to move forward through the chapters. Trading is a business and we need to plan it!

Part 2: Master Price Action

Thursday, August 20, 2020, 9 pm AEST/11 am UTC

When you bake a cake you need to know the ingredients for that cake, you don’t need to know about cooking a lasagna. Craig will focus you on the ingredients needed to bake the perfect trade – process-driven, outcome-based, and zero emotions. You’ve got that here.

Part 3: The Crypto Cradle Strategy

Thursday, August 27, 2020, 9 pm AEST/11 am UTC

This is what most people have been waiting for! In parts 1 and 2, you have set out to plan the type of trader you wish to be and learned the ingredients to be ready for this part 3.

You’re now ready to learn and use the “Crypto Cradle” strategy; arguably the most common trading set up out there.

Part 4: Management of Risk, Mindset, and Progress

Thursday, September 3, 2020, 9 pm AEST/11 am UTC

You have the strategy from the first three webinar episodes of this series, you have the scans and watch list videos, and now it’s about keeping your headstrong and keeping the account growing!

Especially if you’re new to trading or scalping, you don’t want to miss this series. Make sure you sign up before the start time to secure your slot and share it with any of your friends who want to learn more about profitable scalp trading on the DFE!

What’s Coming Up This Week on the DFE

Along with Craig’s webinars, we have some much-anticipated updates to the DFE being rolled out this week. First up, the API will be launched on mainnet, allowing algorithmic traders to plug in their bots and trade automatically for the first time. We know that the API has been in demand ever since we started onboarding traders to the mainnet, and we’re looking forward to the further injection of liquidity that it will bring to the DFE. Watch the blog for a video from Cryptrader explaining how to use it.

Secondly, we explained last week that we are closing the Digitex Treasury and replacing it with the DGTX Converter. The Converter will allow users to deposit a variety of cryptocurrencies, including BTC, ETH, and USDT, onto the DFE and convert them to DGTX so they can start trading with zero fees.

The development team has been working extremely hard to bring this to life, and we’re pleased to confirm it will go live on the testnet later this week. As soon as it’s proving to work without any issue, we will migrate it to the mainnet.

Keep watching the blog for more updates about DFE features and functionality, as they happen. And if you want more information about what to expect, check out our recently published roadmap, which lays out everything still to come in 2020. Stay tuned!

Latest News

5 Key Principles for Success on the DFE 3

5 Key Principles for Success on the DFE

Trading
• Digitex Futures
August 5, 2020

During last Friday’s mega public launch event, one of the standout discussions was when Adam connected with Mika, a pro trader on the DFE. While the DFE is rapidly becoming a magnet for all kinds of traders, Mika stood out because he had learned the scalping strategy directly from Adam himself, and described exactly how he used it to create a profitable way trade full-time. Here, we recap some of the key takeaways from their lively chat, which you can also watch below.

1. Anyone Can Learn to Scalp on Any Markets

Adam and Mika quickly hit it off as Mika shared how he had first come to scalping after reading an article that Adam had written around 15 years ago in Racing Traders. The article describes how Adam had started making a living scalping profits from trading horse racing bets on Betfair, using an initial stake he had loaned from his father.

As Mika says:

“I took your strategy, that you had implemented on Betfair, and I started scalping. It was amazing! I started to be profitable. With this small article, you changed my life.”

Mika had no other input than this one piece of writing from Adam, and yet he quickly managed to start turning a profit using a few simple rules. This is how he ended up finding out about the DFE. Mika goes on to describe how he managed a 60-day run of profitability on the Digitex testnet at launch.

So don’t be put off – if you’ve been thinking about experimenting with scalping, there is no better time to start.

2. You Don’t Need Charts or Indicators

Charts and technical indicators have their place, and many traders use them and find they give reliable results. However, Mika explains that he managed to accrue a balance of 100,000 DGTX from an initial stake of just 50,000 DGTX, without ever using a chart or an indicator. He simply scrapes in his one or two tick profit as soon as it’s available and moves onto the next trade.

3. You Don’t Need to Know the Markets

Mika openly admits that he knows nothing about cryptocurrency. In fact, DGTX was his first-ever crypto purchase, and he bought in solely for the opportunity of zero-fee trading via the ladder interface. Long-time supporters will know that Adam developed a trading ladder application for Betfair, called BetTrader, and along with Adam’s strategy, Mika was also a keen user of BetTrader.

The overall lesson is, as Adam has always said, you don’t need to know what you’re buying or selling. You just need to read the markets. During the talk, they both agreed they were never fans of crypto or horse racing for their own sake, as much as the market for buying or selling the product itself. Successful trading is the ultimate freedom.

4. Be Disciplined

Mika outlines a few simple rules that he always follows.

“The most important rule is to always follow the rules. Never try and predict the market. Take the profit when its there – two or three, or even one tick. And I hate losses. A two-tick loss is the maximum I will tolerate.”

Adam concurs, stating:

“You have to be strict with those losses. That’s where people get it wrong. I found a direct correlation between the longer I held positions and the more successful I was. The shorter I held a position, the more I was able to avoid the losses.”

5. Crypto is the Best Medium for Scalping

While it’s true that you can scalp any markets, Adam and Mika agree that crypto lends itself well to scalping. The horse racing markets demand that you’re online while the race takes place. A football game is only 90 minutes long.

Furthermore, most sports have been ravaged by incidents such as strikes or the current pandemic.

Crypto is a digital medium, and the trading is 24/7 – it never stops. Therefore, there’s always an opportunity to scalp a profit, no matter where you are in the world.

That said, Mika also asked Adam when he could expect multiple ladders, which were available in Adam’s BetTrader app. Once we launch more markets on the DFE, including ETH, gold, oil, and the S&P, we will have multiple markets on multiple ladders on the same screen.

Two scalp traders with the same strategy and the same visions chatting live and unscripted – the enthusiasm was palpable. If you missed the live event, then we’d urge you to watch this chat in particular, as it encapsulates everything that Adam and Digitex have been working towards delivering, in under 30 minutes.

A final point from Mika is that you’ll need a starting trading balance that allows you to make meaningful profits – $200 isn’t going to get you the kind of profits you can live on. If you want the opportunity to try scalp trading with zero fees and attain the ultimate in financial freedom, then you’ll need to buy some DGTX to do so. It’s the only exchange token that serves as a passport to the kind of profitable scalping that both Adam and Mika have discovered and implemented – with massive success. 

August 5, 2020
Trading

5 Key Principles for Success on the DFE

Digitex Futures
5 Key Principles for Success on the DFE 4

During last Friday’s mega public launch event, one of the standout discussions was when Adam connected with Mika, a pro trader on the DFE. While the DFE is rapidly becoming a magnet for all kinds of traders, Mika stood out because he had learned the scalping strategy directly from Adam himself, and described exactly how he used it to create a profitable way trade full-time. Here, we recap some of the key takeaways from their lively chat, which you can also watch below.

1. Anyone Can Learn to Scalp on Any Markets

Adam and Mika quickly hit it off as Mika shared how he had first come to scalping after reading an article that Adam had written around 15 years ago in Racing Traders. The article describes how Adam had started making a living scalping profits from trading horse racing bets on Betfair, using an initial stake he had loaned from his father.

As Mika says:

“I took your strategy, that you had implemented on Betfair, and I started scalping. It was amazing! I started to be profitable. With this small article, you changed my life.”

Mika had no other input than this one piece of writing from Adam, and yet he quickly managed to start turning a profit using a few simple rules. This is how he ended up finding out about the DFE. Mika goes on to describe how he managed a 60-day run of profitability on the Digitex testnet at launch.

So don’t be put off – if you’ve been thinking about experimenting with scalping, there is no better time to start.

2. You Don’t Need Charts or Indicators

Charts and technical indicators have their place, and many traders use them and find they give reliable results. However, Mika explains that he managed to accrue a balance of 100,000 DGTX from an initial stake of just 50,000 DGTX, without ever using a chart or an indicator. He simply scrapes in his one or two tick profit as soon as it’s available and moves onto the next trade.

3. You Don’t Need to Know the Markets

Mika openly admits that he knows nothing about cryptocurrency. In fact, DGTX was his first-ever crypto purchase, and he bought in solely for the opportunity of zero-fee trading via the ladder interface. Long-time supporters will know that Adam developed a trading ladder application for Betfair, called BetTrader, and along with Adam’s strategy, Mika was also a keen user of BetTrader.

The overall lesson is, as Adam has always said, you don’t need to know what you’re buying or selling. You just need to read the markets. During the talk, they both agreed they were never fans of crypto or horse racing for their own sake, as much as the market for buying or selling the product itself. Successful trading is the ultimate freedom.

4. Be Disciplined

Mika outlines a few simple rules that he always follows.

“The most important rule is to always follow the rules. Never try and predict the market. Take the profit when its there – two or three, or even one tick. And I hate losses. A two-tick loss is the maximum I will tolerate.”

Adam concurs, stating:

“You have to be strict with those losses. That’s where people get it wrong. I found a direct correlation between the longer I held positions and the more successful I was. The shorter I held a position, the more I was able to avoid the losses.”

5. Crypto is the Best Medium for Scalping

While it’s true that you can scalp any markets, Adam and Mika agree that crypto lends itself well to scalping. The horse racing markets demand that you’re online while the race takes place. A football game is only 90 minutes long.

Furthermore, most sports have been ravaged by incidents such as strikes or the current pandemic.

Crypto is a digital medium, and the trading is 24/7 – it never stops. Therefore, there’s always an opportunity to scalp a profit, no matter where you are in the world.

That said, Mika also asked Adam when he could expect multiple ladders, which were available in Adam’s BetTrader app. Once we launch more markets on the DFE, including ETH, gold, oil, and the S&P, we will have multiple markets on multiple ladders on the same screen.

Two scalp traders with the same strategy and the same visions chatting live and unscripted – the enthusiasm was palpable. If you missed the live event, then we’d urge you to watch this chat in particular, as it encapsulates everything that Adam and Digitex have been working towards delivering, in under 30 minutes.

A final point from Mika is that you’ll need a starting trading balance that allows you to make meaningful profits – $200 isn’t going to get you the kind of profits you can live on. If you want the opportunity to try scalp trading with zero fees and attain the ultimate in financial freedom, then you’ll need to buy some DGTX to do so. It’s the only exchange token that serves as a passport to the kind of profitable scalping that both Adam and Mika have discovered and implemented – with massive success. 

Latest News

scalping

Level Up Your Scalping with These Candlestick Patterns

Trading
Uncategorized
• Ali Martinez
July 29, 2020

On Friday, July 31, Digitex Futures Exchange will open the doors and launch zero-commission cryptocurrency futures trading to the public for the very first time. While we’re still two days out from the official release, the DFE platform reached an astounding 24-hour volume high of $2.9 billion in trading volume on Tuesday July 28th, 2020.

To prepare for this Friday’s big launch event, there is no better time to understand how to use the platform and learn the basics of how to trade crypto derivative products. More importantly, having the ability to quickly recognize candlestick patterns can make trading strategies such as scalping highly profitable.

Candlestick Patterns to Level Up Your Scalping Strategy

As the cryptocurrency market sits on the cusp of its next bullish cycle, having a solid trading strategy is a must. Understanding when to buy and sell can make a huge difference in anyone’s portfolio.  Although trading is not necessarily easy, there are a number of easy-to-spot candlestick patterns that can help provide a framework about the trending direction of any given asset.

Some of the most popular pair of candlesticks patterns used by professional traders include, bullish and bearish engulfing, morning and evening star, and hammer and shooting star. By no means, the forecast presented by these technical formations is 100% accurate, but they have proven to provide significant opportunities to profit.

Level Up Your Scalping with These Candlestick Patterns 5

Bullish and Bearish Engulfing

Bullish and bearish engulfing patterns are the most widely known candlesticks patterns in trading. These technical formations forecast when upward and downward trends are about to reverse. Therefore, they indicate who is winning the raging battle between the bulls and the bears.

A bullish engulfing pattern develops when a red (purple) candlestick is succeeded by a green (blue) candlestick, which body overlaps the body of the previous candlestick. On the left side of the image below, it shows how the DGTX/USD trading pair is currently developing this type of candlestick pattern, indicating a potential breakout.

Traders with a lot of experience in the industry usually wait for the following candlestick to trade above the engulfing one to enter long positions.

Level Up Your Scalping with These Candlestick Patterns 6

On the other hand, a bearish engulfing pattern signals that prices are bound for a steep correction. The moment a red candlestick overlaps the body of a preceding green candle it suggests that the bears have overtaken the bulls. Thus, sellers will have a better chance to push prices in a downward direction.

As seen in the image above, DGTX went through a corrective period after this technical formation developed on April 10. The token saw its price take a 20% nosedive upon the completion of the bearish engulfing pattern, before it bounced to up to new higher highs.

Morning and Evening Star

Morning and Evening star patterns consist of three candlesticks that describe whether the bull or the bears are taking control of the price action of any asset. These technical formations are also reversal patterns that anticipate oversold and overbought territories. When employed with other indexes, they have proven to be quite accurate.

On DGTX’s 1-day chart, a morning star pattern formed in mid-May following a downward trend. It consisted of three different candlesticks: a large red candlestick, a small-bodied candlestick or doji, and a green candlestick. This technical pattern was able to anticipate that DGTX was about to reverse, which was indeed followed by a 19% upswing.

Level Up Your Scalping with These Candlestick Patterns 7

An evening star, however, is used to detect when an uptrend is about to reverse. This bearish candlestick pattern also consists of three candles: a large green candlestick, a small-bodied candle or doji, and a red candle. As it happened in late May, the occurrence of this technical pattern led to a steep correction across most major digital assets, before prices recovered.

Inverted Hammer and Shooting Star

An inverted hammer and a shooting star pattern look very similar, but they present different scenarios. The former is a bullish candlestick pattern since it tends to occur in a downward trend. Meanwhile, the latter is used to predict that an uptrend is coming to an end.

In mid-December 2019, the DGTX/USD trading pair presented this type of candlestick pattern. It formed at the bottom of a downtrend and acted as a buy signal suggesting a high potential for a reversal to the upside. During that time, the inverted hammer was effectively able to predict an upswing of 19%.

Level Up Your Scalping with These Candlestick Patterns 8

A shooting star pattern formed in early May on DGTX’s daily chart. As seen in the image above, this candlestick pattern formed right on the top of an uptrend while the inverted hammer developed on the bottom of a downtrend. It was able to forecast that DGTX was bound for a correction.

Don’t forget that this Friday, July 31, is our big public launch event, where we’ll raffle $250,000 worth of DGTX as part of our celebration. Ten lucky traders will be awarded with $5,000 in DGTX each, while another 1,000 will take away $200 each. If you haven’t yet set your reminder on YouTube, what are you waiting for? You don’t want to miss out! 

July 29, 2020
Trading
Uncategorized

Level Up Your Scalping with These Candlestick Patterns

Ali Martinez
scalping

On Friday, July 31, Digitex Futures Exchange will open the doors and launch zero-commission cryptocurrency futures trading to the public for the very first time. While we’re still two days out from the official release, the DFE platform reached an astounding 24-hour volume high of $2.9 billion in trading volume on Tuesday July 28th, 2020.

To prepare for this Friday’s big launch event, there is no better time to understand how to use the platform and learn the basics of how to trade crypto derivative products. More importantly, having the ability to quickly recognize candlestick patterns can make trading strategies such as scalping highly profitable.

Candlestick Patterns to Level Up Your Scalping Strategy

As the cryptocurrency market sits on the cusp of its next bullish cycle, having a solid trading strategy is a must. Understanding when to buy and sell can make a huge difference in anyone’s portfolio.  Although trading is not necessarily easy, there are a number of easy-to-spot candlestick patterns that can help provide a framework about the trending direction of any given asset.

Some of the most popular pair of candlesticks patterns used by professional traders include, bullish and bearish engulfing, morning and evening star, and hammer and shooting star. By no means, the forecast presented by these technical formations is 100% accurate, but they have proven to provide significant opportunities to profit.

Level Up Your Scalping with These Candlestick Patterns 9

Bullish and Bearish Engulfing

Bullish and bearish engulfing patterns are the most widely known candlesticks patterns in trading. These technical formations forecast when upward and downward trends are about to reverse. Therefore, they indicate who is winning the raging battle between the bulls and the bears.

A bullish engulfing pattern develops when a red (purple) candlestick is succeeded by a green (blue) candlestick, which body overlaps the body of the previous candlestick. On the left side of the image below, it shows how the DGTX/USD trading pair is currently developing this type of candlestick pattern, indicating a potential breakout.

Traders with a lot of experience in the industry usually wait for the following candlestick to trade above the engulfing one to enter long positions.

Level Up Your Scalping with These Candlestick Patterns 10

On the other hand, a bearish engulfing pattern signals that prices are bound for a steep correction. The moment a red candlestick overlaps the body of a preceding green candle it suggests that the bears have overtaken the bulls. Thus, sellers will have a better chance to push prices in a downward direction.

As seen in the image above, DGTX went through a corrective period after this technical formation developed on April 10. The token saw its price take a 20% nosedive upon the completion of the bearish engulfing pattern, before it bounced to up to new higher highs.

Morning and Evening Star

Morning and Evening star patterns consist of three candlesticks that describe whether the bull or the bears are taking control of the price action of any asset. These technical formations are also reversal patterns that anticipate oversold and overbought territories. When employed with other indexes, they have proven to be quite accurate.

On DGTX’s 1-day chart, a morning star pattern formed in mid-May following a downward trend. It consisted of three different candlesticks: a large red candlestick, a small-bodied candlestick or doji, and a green candlestick. This technical pattern was able to anticipate that DGTX was about to reverse, which was indeed followed by a 19% upswing.

Level Up Your Scalping with These Candlestick Patterns 11

An evening star, however, is used to detect when an uptrend is about to reverse. This bearish candlestick pattern also consists of three candles: a large green candlestick, a small-bodied candle or doji, and a red candle. As it happened in late May, the occurrence of this technical pattern led to a steep correction across most major digital assets, before prices recovered.

Inverted Hammer and Shooting Star

An inverted hammer and a shooting star pattern look very similar, but they present different scenarios. The former is a bullish candlestick pattern since it tends to occur in a downward trend. Meanwhile, the latter is used to predict that an uptrend is coming to an end.

In mid-December 2019, the DGTX/USD trading pair presented this type of candlestick pattern. It formed at the bottom of a downtrend and acted as a buy signal suggesting a high potential for a reversal to the upside. During that time, the inverted hammer was effectively able to predict an upswing of 19%.

Level Up Your Scalping with These Candlestick Patterns 12

A shooting star pattern formed in early May on DGTX’s daily chart. As seen in the image above, this candlestick pattern formed right on the top of an uptrend while the inverted hammer developed on the bottom of a downtrend. It was able to forecast that DGTX was bound for a correction.

Don’t forget that this Friday, July 31, is our big public launch event, where we’ll raffle $250,000 worth of DGTX as part of our celebration. Ten lucky traders will be awarded with $5,000 in DGTX each, while another 1,000 will take away $200 each. If you haven’t yet set your reminder on YouTube, what are you waiting for? You don’t want to miss out! 

Latest News

Cryptrader

Cryptrader Explains How to Use Conditional Orders

Trading
• Digitex Futures
July 22, 2020

Traders on the DFE mainnet have been clamoring for conditional orders, and Stop Loss in particular, ever since we launched. We’re pleased to say that this feature is now live, and in advance of the public launch on July 31. In this video, our pro mainnet user Cryptrader explains how to use conditional orders, including Stop Loss, on the DFE.

Cryptrader opens the video by explaining the role of conditional orders in a risk management strategy. If you need to step away from the trading screen, or want to leave an order open overnight, then you’ll need to know how to set a Stop Loss in case of a sudden price movement that could see you in a losing position.

On the DFE, there are four different types of conditional orders. These are Stop-Limit, Stop-Market, Take-Profit-Limit, and Take-Profit-Market.

Although each has its purpose, if you’re using Stop Loss as part of a risk management strategy, then Stop-Limit comes with the additional risk that your order will take more time to get filled. During this time, assuming you’re away from the trading screen, price volatility could mean you incur additional losses.

Although conditional ordering is now live, Cryptrader uses the testnet in this video so he can demonstrate each case of conditional ordering without risking losing any real DGTX. This explains how one of his trades here is leveraged at 100x. However, we have just increased leverage on the DFE from 10x to 25x, which mainnet users will now see when they log in.

Using Stop-Market Orders

Cryptrader walks through a straightforward example, using a Stop-Market order for a long position of one contract. He sets up the conditional order to sell the contract if the price dips below a level between the value of his order and the liquidation price.

In the next example, he demonstrates the same scenario but with a short position. In this case, he opens a short position for one contract and sets a Stop-Market buy order for one contract. This time around, the conditional price is set for a value above his order but below the liquidation price.

In each case, you can see your conditional orders in the “Delayed Actions” tab in the order section of the DFE interface.

Using Stop-Limit Orders

With Stop-Limit orders, you can specify particular conditions for the cancelation of the order, in contrast with Stop-Market orders, which are always good until canceled.

Cryptrader walks through how to use the Stop-Limit orders, again illustrating the conditional order using both a long and a short position. The key feature of Stop-Limit orders is that you can specify the value at which you want to exit the position, rather than the exit being triggered only by the spot price. This allows you to decide how much slippage you’re prepared to accept.

However, the trade-off is that if your order doesn’t get filled, the price could slip to the point of liquidation. Cryptrader uses a large short trade of 1,000 contracts to demonstrate how there needs to be enough liquidity on the ladder to fill a Stop-Limit order.

Take-Profit-Market and Take-Profit-Limit

The Take Profit orders work in the same way as Stop Loss but in reverse. So your conditional orders are set to trigger based on the spot price or your limit value but execute based on achieving a profit, rather than on limiting loss.

Cryptrader demonstrates another four orders, using Take-Profit-Market and Take-Profit-Limit on both long and short positions.

Opening Positions Using Conditional Ordering

Finally, Cryptrader demonstrates how to open a position based on a breakout level. He uses the example of opening a short position for 100 contracts, with a Stop-Market order. Here, you’ll need to check the “Allow position increase” box, which allows you to open the position when you’re starting from zero.

Using conditional orders to open a position means that you can take advantage of price movements that break through lines of support or resistance even when you’re away from the trading screen.

We’re always aiming to give users the best possible experience when trading on the DFE. Right now, the development team is working on bringing conditional ordering features to the ladder itself, meaning it will be even easier to set a Stop Loss or Take Profit. Watch this space! And remember, you can catch all Cryptrader’s live-streamed DFE trading sessions over on his YouTube channel.

July 22, 2020
Trading

Cryptrader Explains How to Use Conditional Orders

Digitex Futures
Cryptrader

Traders on the DFE mainnet have been clamoring for conditional orders, and Stop Loss in particular, ever since we launched. We’re pleased to say that this feature is now live, and in advance of the public launch on July 31. In this video, our pro mainnet user Cryptrader explains how to use conditional orders, including Stop Loss, on the DFE.

Cryptrader opens the video by explaining the role of conditional orders in a risk management strategy. If you need to step away from the trading screen, or want to leave an order open overnight, then you’ll need to know how to set a Stop Loss in case of a sudden price movement that could see you in a losing position.

On the DFE, there are four different types of conditional orders. These are Stop-Limit, Stop-Market, Take-Profit-Limit, and Take-Profit-Market.

Although each has its purpose, if you’re using Stop Loss as part of a risk management strategy, then Stop-Limit comes with the additional risk that your order will take more time to get filled. During this time, assuming you’re away from the trading screen, price volatility could mean you incur additional losses.

Although conditional ordering is now live, Cryptrader uses the testnet in this video so he can demonstrate each case of conditional ordering without risking losing any real DGTX. This explains how one of his trades here is leveraged at 100x. However, we have just increased leverage on the DFE from 10x to 25x, which mainnet users will now see when they log in.

Using Stop-Market Orders

Cryptrader walks through a straightforward example, using a Stop-Market order for a long position of one contract. He sets up the conditional order to sell the contract if the price dips below a level between the value of his order and the liquidation price.

In the next example, he demonstrates the same scenario but with a short position. In this case, he opens a short position for one contract and sets a Stop-Market buy order for one contract. This time around, the conditional price is set for a value above his order but below the liquidation price.

In each case, you can see your conditional orders in the “Delayed Actions” tab in the order section of the DFE interface.

Using Stop-Limit Orders

With Stop-Limit orders, you can specify particular conditions for the cancelation of the order, in contrast with Stop-Market orders, which are always good until canceled.

Cryptrader walks through how to use the Stop-Limit orders, again illustrating the conditional order using both a long and a short position. The key feature of Stop-Limit orders is that you can specify the value at which you want to exit the position, rather than the exit being triggered only by the spot price. This allows you to decide how much slippage you’re prepared to accept.

However, the trade-off is that if your order doesn’t get filled, the price could slip to the point of liquidation. Cryptrader uses a large short trade of 1,000 contracts to demonstrate how there needs to be enough liquidity on the ladder to fill a Stop-Limit order.

Take-Profit-Market and Take-Profit-Limit

The Take Profit orders work in the same way as Stop Loss but in reverse. So your conditional orders are set to trigger based on the spot price or your limit value but execute based on achieving a profit, rather than on limiting loss.

Cryptrader demonstrates another four orders, using Take-Profit-Market and Take-Profit-Limit on both long and short positions.

Opening Positions Using Conditional Ordering

Finally, Cryptrader demonstrates how to open a position based on a breakout level. He uses the example of opening a short position for 100 contracts, with a Stop-Market order. Here, you’ll need to check the “Allow position increase” box, which allows you to open the position when you’re starting from zero.

Using conditional orders to open a position means that you can take advantage of price movements that break through lines of support or resistance even when you’re away from the trading screen.

We’re always aiming to give users the best possible experience when trading on the DFE. Right now, the development team is working on bringing conditional ordering features to the ladder itself, meaning it will be even easier to set a Stop Loss or Take Profit. Watch this space! And remember, you can catch all Cryptrader’s live-streamed DFE trading sessions over on his YouTube channel.

Latest News

trading

Boost your trading skills with these crucial chart patterns

Trading
• Ali Martinez
July 14, 2020

Profitable trading involves spending some time learning the ropes. For this reason, Digitex’s business model was created around helping our users achieve their trading goals. Our team has been focused on producing educational material to allow users to take advantage of our zero-commission trading platform, creating more winning traders.

With the upcoming launch of the Digitex Futures Exchange, there is no better time to understand how to use the platform and learn the basics of how to trade crypto derivative products. More importantly, having the ability to quickly recognize chart patterns can make trading strategies such as scalping and swing trading highly profitable.

Crucial Chart Patterns to Boost Your Trading Skills

With the high levels of FUD (fear, uncertainty, and doubt) surrounding the cryptocurrency market, chart patterns provide a framework to filter all the nonsense. The analysis of such technical formations is crucial to determine who is winning the raging battle between bulls and bears.

As a rule of thumb, the trend of any given asset is usually interrupted by indecision periods. During these times, traders must identify whether or not a chart pattern is forming that could help forecast if the trend continues.

It is worth noting that chart patterns can take a long time to develop fully, which usually results in more significant price movements. Especially when the price action evolves around the previous trend.

These types of technical formations are known as continuation patterns, and the most common ones include triangles, channels, and pennants.

Boost your trading skills with these crucial chart patterns 13

Triangles

Triangles are one of the most common chart patterns employed in technical analysis due to the frequency in which they tend to develop. The price action of any given cryptocurrency can lead to the formation of ascending or descending triangles. The main difference between the two is that the former usually results in a breakout while the latter results in a breakdown.

By measuring the distance of the between the two highest points of a triangle, a potential target can be determined.

Bitcoin, for instance, generally forms this type of continuation pattern within all time frames. On the image below, one can see that on the left, a horizontal line was created along with the swing highs while a rising trendline developed along with the swing lows. This is considered an ascending triangle, which successfully predicted a potential target of nearly 10%.

Boost your trading skills with these crucial chart patterns 14

On the right side of the image above, however, Bitcoin developed a descending triangle. A horizontal trendline was created along with the swing lows while a descending trendline formed along with the swing highs. The distance between the highest points of the triangle anticipated a nearly 50% correction. When BTC finally broke down of this pattern in mid-November 2018, its price plummeted 47.5%.

Channels

Channels are composed of two parallel trendlines that can slope up or down. Typically, a parallel channel with a downward slope occurs in an uptrend, while a parallel channel with an upward bias shows up in a downtrend. There is a tendency to draw a parallel line equal to the channel’s distance to determine a potential target when an asset breaks out or down of this pattern.

These continuation patterns are commonly seen across the different time frames of DGTX. Recently, this utility token broke out of a descending parallel channel after trading within it for over three months. Moving past the upper boundary of the channel allowed DGTX to surge to $0.067, which is roughly the same target determined by this technical pattern.

Boost your trading skills with these crucial chart patterns 15

An ascending parallel channel was also spotted on DGTX’s 4-hour chart in late December 2018. Following the break of the lower boundary of this bearish formation, the price of this altcoin dropped by 20%. The downward impulse allowed it to reach the target calculated by drawing a parallel line equal to the ascending channel’s distance.

Pennants

Pennants are created by two trendlines that eventually converge. One of them goes in a downward direction while the other in an upward direction. As shown in the image below, the distance between the pennant’s highest points provides a potential target to take profits once prices eventually break out or down.

In an ascending trend, the creation of a pennant can lead to further gains. Ethereum’s price action, for instance, formed a pennant in March 2017 as the ICO mania was kicking off. Even though this pattern forecasted a 42% upswing, Ether was able to climb over 50% once it broke out of it.

Boost your trading skills with these crucial chart patterns 16

As ETH was reaching an exhaustion point a couple of months later, another pennant formed. This time, however, the outcome was bearish since the preceding trend was downward. As a result, the price of Ethereum plunged over 15%, which was consistent with the target given by this technical formation.

It’s Time to Practice

Now that you have learned about some of the most common continuation patterns in technical analysis, it’s time for you to practice. If you’re already trading on the DFE mainnet, then our zero-fee trading environment is perfect for testing out these chart patterns without the edge of commissions working against you.

If you’re still waiting for the chance to get onto the DFE mainnet, then why not test out what you’ve learned so far on the Digitex testnet platform? It’s free to sign up, and doing so means you’re automatically queued for a mainnet account.

We’ve now opened up the Digitex mainnet to over 30,000 traders, and next week, we’ll be inviting the one million users from our waitlist. With a public launch only weeks away, the DFE is shaping up to be one of the most liquid exchanges on the market.

July 14, 2020
Trading

Boost your trading skills with these crucial chart patterns

Ali Martinez
trading

Profitable trading involves spending some time learning the ropes. For this reason, Digitex’s business model was created around helping our users achieve their trading goals. Our team has been focused on producing educational material to allow users to take advantage of our zero-commission trading platform, creating more winning traders.

With the upcoming launch of the Digitex Futures Exchange, there is no better time to understand how to use the platform and learn the basics of how to trade crypto derivative products. More importantly, having the ability to quickly recognize chart patterns can make trading strategies such as scalping and swing trading highly profitable.

Crucial Chart Patterns to Boost Your Trading Skills

With the high levels of FUD (fear, uncertainty, and doubt) surrounding the cryptocurrency market, chart patterns provide a framework to filter all the nonsense. The analysis of such technical formations is crucial to determine who is winning the raging battle between bulls and bears.

As a rule of thumb, the trend of any given asset is usually interrupted by indecision periods. During these times, traders must identify whether or not a chart pattern is forming that could help forecast if the trend continues.

It is worth noting that chart patterns can take a long time to develop fully, which usually results in more significant price movements. Especially when the price action evolves around the previous trend.

These types of technical formations are known as continuation patterns, and the most common ones include triangles, channels, and pennants.

Boost your trading skills with these crucial chart patterns 17

Triangles

Triangles are one of the most common chart patterns employed in technical analysis due to the frequency in which they tend to develop. The price action of any given cryptocurrency can lead to the formation of ascending or descending triangles. The main difference between the two is that the former usually results in a breakout while the latter results in a breakdown.

By measuring the distance of the between the two highest points of a triangle, a potential target can be determined.

Bitcoin, for instance, generally forms this type of continuation pattern within all time frames. On the image below, one can see that on the left, a horizontal line was created along with the swing highs while a rising trendline developed along with the swing lows. This is considered an ascending triangle, which successfully predicted a potential target of nearly 10%.

Boost your trading skills with these crucial chart patterns 18

On the right side of the image above, however, Bitcoin developed a descending triangle. A horizontal trendline was created along with the swing lows while a descending trendline formed along with the swing highs. The distance between the highest points of the triangle anticipated a nearly 50% correction. When BTC finally broke down of this pattern in mid-November 2018, its price plummeted 47.5%.

Channels

Channels are composed of two parallel trendlines that can slope up or down. Typically, a parallel channel with a downward slope occurs in an uptrend, while a parallel channel with an upward bias shows up in a downtrend. There is a tendency to draw a parallel line equal to the channel’s distance to determine a potential target when an asset breaks out or down of this pattern.

These continuation patterns are commonly seen across the different time frames of DGTX. Recently, this utility token broke out of a descending parallel channel after trading within it for over three months. Moving past the upper boundary of the channel allowed DGTX to surge to $0.067, which is roughly the same target determined by this technical pattern.

Boost your trading skills with these crucial chart patterns 19

An ascending parallel channel was also spotted on DGTX’s 4-hour chart in late December 2018. Following the break of the lower boundary of this bearish formation, the price of this altcoin dropped by 20%. The downward impulse allowed it to reach the target calculated by drawing a parallel line equal to the ascending channel’s distance.

Pennants

Pennants are created by two trendlines that eventually converge. One of them goes in a downward direction while the other in an upward direction. As shown in the image below, the distance between the pennant’s highest points provides a potential target to take profits once prices eventually break out or down.

In an ascending trend, the creation of a pennant can lead to further gains. Ethereum’s price action, for instance, formed a pennant in March 2017 as the ICO mania was kicking off. Even though this pattern forecasted a 42% upswing, Ether was able to climb over 50% once it broke out of it.

Boost your trading skills with these crucial chart patterns 20

As ETH was reaching an exhaustion point a couple of months later, another pennant formed. This time, however, the outcome was bearish since the preceding trend was downward. As a result, the price of Ethereum plunged over 15%, which was consistent with the target given by this technical formation.

It’s Time to Practice

Now that you have learned about some of the most common continuation patterns in technical analysis, it’s time for you to practice. If you’re already trading on the DFE mainnet, then our zero-fee trading environment is perfect for testing out these chart patterns without the edge of commissions working against you.

If you’re still waiting for the chance to get onto the DFE mainnet, then why not test out what you’ve learned so far on the Digitex testnet platform? It’s free to sign up, and doing so means you’re automatically queued for a mainnet account.

We’ve now opened up the Digitex mainnet to over 30,000 traders, and next week, we’ll be inviting the one million users from our waitlist. With a public launch only weeks away, the DFE is shaping up to be one of the most liquid exchanges on the market.

Latest News

bitcoin

A Technical Index To Help You Time Bitcoin’s Price Action

Trading
• Ali Martinez
June 23, 2020

Thousands of technical indicators are used by traders all over the world to try to forecast the direction of Bitcoin’s trend and profit from it. While most of these indexes are easily accessible to the public, there is one, in particular, that is widely used by institutional investors. Here, we demonstrate how retail traders can use it to their advantage. 

The Tom Demark (TD) Sequential indicator is often described as one of the most efficient gauges since it can be easily adapted to any trading strategy. This index serves the purpose of identifying local tops and bottoms as it signals when an uptrend or a downtrend is about to reach an exhaustion point and reverse.     

Over the years, the TD setup has proven to be essential in determining Bitcoin’s price action. In 2020, for instance, it was able to predict one of the most significant corrections that the flagship cryptocurrency has seen thus far. 

In mid-February when Bitcoin surged to a yearly high of $10,500, the TD Sequential presented a sell signal in the form of a green nine candlestick. Following the bearish formation, BTC went through a massive bearish impulse that saw its price plummet by nearly 63%.

Then, it was also able to accurately estimate that BTC was reaching an oversold territory on March 16. After providing a buy signal in the form of a red nine candlestick that transitioned into a green one, the price of Bitcoin recovered over 56% of the losses incurred.  

Bitcoin US dollar price chart
TD Sequential Times BTC’s Price Action During March’s Market Meltdown. (Source: TradingView)

The high level of precision that this technical index has to determine where Bitcoin is headed next, makes it ideal for any trader to consider it before entering any long or short positions. For this reason, we will explore some of the most simple and effective rules of the TD Sequential to help you time the price action of the bellwether cryptocurrency.  

When to Buy and When to Sell?

The TD setup usually presents different buy and sell signals that are correlated with Bitcoin’s price action. These vary between aggressive, combo, and sequential 13 candlesticks as well as others. But for now, we will direct our focus towards the most significant bullish and bearish formation that will boost your trading strategy. 

The most important buy and sell signals start with the completion of a nine candlesticks count. When a nine candlesticks countdown is completed, it is at that point that the TD Sequential indicates that a pullback or trend reversal is about to take place. This can happen in an upward or downward direction. 

When it occurs to the upside, the bearish formation develops in the form of a green nine candlestick that forecasts a one to four candlesticks correction or the beginning of a new downward countdown. Conversely, when the nine candlesticks count happens in a downward trend, the buy signal develops in the form of a red nine candlestick estimating that a bullish impulse is underway. 

It is worth noting that green nine and red nine candlesticks can transition into red or green one candlesticks, respectively, depending on Bitcoin’s price action. But this does not invalidate the forecast of each signal. 

A look at BTC’s 1-day chart shows how the formation of green and red nine candlesticks has provided several opportunities to profit since mid-December. Traders who rigorously followed these signals since then would have made at least 180% in profits. Meanwhile, those who bought Bitcoin around December 16, 2019, would have 47% returns.  

Bitcoin US dollar price chart
TD Setup Provides Sizable Opportunites to Profit. (Source: TradingView)

Another important rule to have in mind when using the TD Sequential indicator is that a green two candlestick trading above a preceding green one candle can have the potential to invalidate a sell signal. The same goes when a red nine candlestick develops and there is a red two candlestick trading below the preceding red one candle. 

If you’re already trading on the DFE mainnet, then our zero-fee trading environment is perfect for testing out these kinds of indicators in your trading strategy without the edge of commissions working against you.

If you’re still waiting for the chance to get onto the DFE mainnet, then why not test out the TD Sequential indicator on the Digitex testnet platform? It’s free to sign up and doing so means you’re automatically queued for a mainnet account. We’re onboarding more and more traders every week, turning the DFE into one of the most liquid exchanges on the market.

June 23, 2020
Trading

A Technical Index To Help You Time Bitcoin’s Price Action

Ali Martinez
bitcoin

Thousands of technical indicators are used by traders all over the world to try to forecast the direction of Bitcoin’s trend and profit from it. While most of these indexes are easily accessible to the public, there is one, in particular, that is widely used by institutional investors. Here, we demonstrate how retail traders can use it to their advantage. 

The Tom Demark (TD) Sequential indicator is often described as one of the most efficient gauges since it can be easily adapted to any trading strategy. This index serves the purpose of identifying local tops and bottoms as it signals when an uptrend or a downtrend is about to reach an exhaustion point and reverse.     

Over the years, the TD setup has proven to be essential in determining Bitcoin’s price action. In 2020, for instance, it was able to predict one of the most significant corrections that the flagship cryptocurrency has seen thus far. 

In mid-February when Bitcoin surged to a yearly high of $10,500, the TD Sequential presented a sell signal in the form of a green nine candlestick. Following the bearish formation, BTC went through a massive bearish impulse that saw its price plummet by nearly 63%.

Then, it was also able to accurately estimate that BTC was reaching an oversold territory on March 16. After providing a buy signal in the form of a red nine candlestick that transitioned into a green one, the price of Bitcoin recovered over 56% of the losses incurred.  

Bitcoin US dollar price chart
TD Sequential Times BTC’s Price Action During March’s Market Meltdown. (Source: TradingView)

The high level of precision that this technical index has to determine where Bitcoin is headed next, makes it ideal for any trader to consider it before entering any long or short positions. For this reason, we will explore some of the most simple and effective rules of the TD Sequential to help you time the price action of the bellwether cryptocurrency.  

When to Buy and When to Sell?

The TD setup usually presents different buy and sell signals that are correlated with Bitcoin’s price action. These vary between aggressive, combo, and sequential 13 candlesticks as well as others. But for now, we will direct our focus towards the most significant bullish and bearish formation that will boost your trading strategy. 

The most important buy and sell signals start with the completion of a nine candlesticks count. When a nine candlesticks countdown is completed, it is at that point that the TD Sequential indicates that a pullback or trend reversal is about to take place. This can happen in an upward or downward direction. 

When it occurs to the upside, the bearish formation develops in the form of a green nine candlestick that forecasts a one to four candlesticks correction or the beginning of a new downward countdown. Conversely, when the nine candlesticks count happens in a downward trend, the buy signal develops in the form of a red nine candlestick estimating that a bullish impulse is underway. 

It is worth noting that green nine and red nine candlesticks can transition into red or green one candlesticks, respectively, depending on Bitcoin’s price action. But this does not invalidate the forecast of each signal. 

A look at BTC’s 1-day chart shows how the formation of green and red nine candlesticks has provided several opportunities to profit since mid-December. Traders who rigorously followed these signals since then would have made at least 180% in profits. Meanwhile, those who bought Bitcoin around December 16, 2019, would have 47% returns.  

Bitcoin US dollar price chart
TD Setup Provides Sizable Opportunites to Profit. (Source: TradingView)

Another important rule to have in mind when using the TD Sequential indicator is that a green two candlestick trading above a preceding green one candle can have the potential to invalidate a sell signal. The same goes when a red nine candlestick develops and there is a red two candlestick trading below the preceding red one candle. 

If you’re already trading on the DFE mainnet, then our zero-fee trading environment is perfect for testing out these kinds of indicators in your trading strategy without the edge of commissions working against you.

If you’re still waiting for the chance to get onto the DFE mainnet, then why not test out the TD Sequential indicator on the Digitex testnet platform? It’s free to sign up and doing so means you’re automatically queued for a mainnet account. We’re onboarding more and more traders every week, turning the DFE into one of the most liquid exchanges on the market.

Latest News

trading strategy

One Trading Strategy for Gains of 400,000 DGTX in Two Months

Trading
• Digitex Futures
June 17, 2020

Cryptrader is back with another video helping traders navigate the mainnet and providing useful tips and insights to his own trading strategies. Today, he walks through the one strategy that he’s used to generate gains of 400,000 DGTX tokens in just two months of mainnet trading!

Cryptrader opens the video by walking through one of the main user interface changes implemented as a result of last week’s update. Mainnet users will now notice that there is a “Start” button on the top right, which opens up a box to configure the DFE dashboard to the user’s preferences.

It will also give you the opportunity to buy Digitex from the Treasury to help speed up the process of getting into trading. Users can also select their desired leverage and easily toggle between testnet and mainnet.

Using Fibonacci Levels to Calculate Entry and Exit

Now, to the exciting part! Cryptrader shares the strategy he has been using to generate 400,000 DGTX in the two months that he’s been trading on the DFE mainnet. To save you doing the math, 400k DGTX works out to $16,000 in profit at an average price of $0.04 for one DGTX. That’s some impressive effort!

Cryptrader points out that when the market moves in either direction, it goes in waves, with a surge and then a smaller correction. His strategy is to look for the point when the wave is about to exhaust itself and trade the pullback with a short.

He demonstrates how to use the Fibonacci Retracement tool to find the level to short at. His preferred zone is to enter at the 0.5 to 0.618 level, with a target of exiting around the 0.236 level.

Using the risk/reward tool will help you determine where you should exit the position, both from a stop-loss and take-profit perspective. Currently, both of these features are in test mode on the DFE. So, until they’re live, mainnet users should continue monitoring their trades to exit manually once the price hits their risk or reward limits.

Cryptrader uses the risk/reward tool to illustrate that he only has to be right 30% of the time for this to become a profitable trading strategy.

He moves on to another example, using the same strategy on a different price movement. In this instance, he demonstrates how it made sense to target a higher low, based on the overall pattern of the market.

The strategy listed here is just one of many that a trader could use. However, Cryptrader’s success on the mainnet demonstrates how finding a single formula for success, and sticking to it, can result in some serious profits.

The video here is retrospective, so Cryptrader is explaining how he executed some of his latest trades. If you want to watch him performing this strategy live, then you can head over to his YouTube channel and watch one of his live trading sessions on the DFE mainnet.

Photo Contest – Round 2 is Now Open!

Want to win some DGTX, Digitex merch, or an exclusive silver DGTX coin ? Now is your chance, with the second round of our highly popular photo contest! Post a picture of your trading setup either at home or in a unique location on Twitter or Facebook and send it in using this form. We will raffle the prizes on July 1, live! Prizes are as follows:

  • First place – 5,000 DGTX
  • Second and third place – A Digitex cap or t-shirt
  • Fourth and fifth place – A silver DGTX coin

Entries are limited to one per person per day, and duplicates will be rejected. If someone submits more than one entry per day, the last one will be accepted as their submission. The day ends at midnight UTC.

Mainnet Applications Still Open

We are still accepting applications to join the mainnet group via this form. However, the form will be closed next Tuesday, June 23. So if you want to apply, make sure you complete the form before the deadline to be in with a chance of being selected!

June 17, 2020
Trading

One Trading Strategy for Gains of 400,000 DGTX in Two Months

Digitex Futures
trading strategy

Cryptrader is back with another video helping traders navigate the mainnet and providing useful tips and insights to his own trading strategies. Today, he walks through the one strategy that he’s used to generate gains of 400,000 DGTX tokens in just two months of mainnet trading!

Cryptrader opens the video by walking through one of the main user interface changes implemented as a result of last week’s update. Mainnet users will now notice that there is a “Start” button on the top right, which opens up a box to configure the DFE dashboard to the user’s preferences.

It will also give you the opportunity to buy Digitex from the Treasury to help speed up the process of getting into trading. Users can also select their desired leverage and easily toggle between testnet and mainnet.

Using Fibonacci Levels to Calculate Entry and Exit

Now, to the exciting part! Cryptrader shares the strategy he has been using to generate 400,000 DGTX in the two months that he’s been trading on the DFE mainnet. To save you doing the math, 400k DGTX works out to $16,000 in profit at an average price of $0.04 for one DGTX. That’s some impressive effort!

Cryptrader points out that when the market moves in either direction, it goes in waves, with a surge and then a smaller correction. His strategy is to look for the point when the wave is about to exhaust itself and trade the pullback with a short.

He demonstrates how to use the Fibonacci Retracement tool to find the level to short at. His preferred zone is to enter at the 0.5 to 0.618 level, with a target of exiting around the 0.236 level.

Using the risk/reward tool will help you determine where you should exit the position, both from a stop-loss and take-profit perspective. Currently, both of these features are in test mode on the DFE. So, until they’re live, mainnet users should continue monitoring their trades to exit manually once the price hits their risk or reward limits.

Cryptrader uses the risk/reward tool to illustrate that he only has to be right 30% of the time for this to become a profitable trading strategy.

He moves on to another example, using the same strategy on a different price movement. In this instance, he demonstrates how it made sense to target a higher low, based on the overall pattern of the market.

The strategy listed here is just one of many that a trader could use. However, Cryptrader’s success on the mainnet demonstrates how finding a single formula for success, and sticking to it, can result in some serious profits.

The video here is retrospective, so Cryptrader is explaining how he executed some of his latest trades. If you want to watch him performing this strategy live, then you can head over to his YouTube channel and watch one of his live trading sessions on the DFE mainnet.

Photo Contest – Round 2 is Now Open!

Want to win some DGTX, Digitex merch, or an exclusive silver DGTX coin ? Now is your chance, with the second round of our highly popular photo contest! Post a picture of your trading setup either at home or in a unique location on Twitter or Facebook and send it in using this form. We will raffle the prizes on July 1, live! Prizes are as follows:

  • First place – 5,000 DGTX
  • Second and third place – A Digitex cap or t-shirt
  • Fourth and fifth place – A silver DGTX coin

Entries are limited to one per person per day, and duplicates will be rejected. If someone submits more than one entry per day, the last one will be accepted as their submission. The day ends at midnight UTC.

Mainnet Applications Still Open

We are still accepting applications to join the mainnet group via this form. However, the form will be closed next Tuesday, June 23. So if you want to apply, make sure you complete the form before the deadline to be in with a chance of being selected!

Latest News

Ethereum Paves the Way For Mainstream Adoption as It Signals Further Gains 21

Ethereum Paves the Way For Mainstream Adoption as It Signals Further Gains

Trading
• Ali Martinez
June 16, 2020

Digitex Futures Exchange is gearing up to roll out a new financial product this summer that will enable mainnet users to benefit from Ethereum’s price action. The new ETHUSD perpetual contracts together with the opportunity for zero-fee trading will offer a broader range of markets to our traders, attracting more users to our mainnet and driving demand for the DGTX token. 

For this reason, we have decided to take a look at the different milestones that Ethereum has reached over the past year to determine whether or not it will offer sizable opportunities for those trading it.

Ethereum’s Utility Increases Over Time

The second-largest cryptocurrency in the industry by market cap, Ethereum, has managed to expand its reach to millions of investors worldwide over the past year. Not only Japan’s e-commerce giant Ratuken launched a new mobile app that offers a spot trading service for ETH, but Swiss exchange SIX listed a joint Bitcoin and Ether exchange-traded product (ETP).

The move was meant to provide a “unique way for investors to add the two major cryptocurrencies globally to their portfolio,” according to Amun CEO Hany Rashwan.

As more retail and institutional investors gained access to Ethereum, different organizations across the globe have employed the smart contracts giant’s technology to improve their operations. IKEA, for instance, took part in a commercial transaction on the Ethereum network to facilitate the settlement of an order from a local retailer. Uniswap, on the other hand, listed the first real estate security token and UNICEF, the United Nations’ charity arm for children, launched a cryptocurrency fund based on Ether donations.

Meanwhile, professional soccer clubs Galatasaray Spor Kulübü and Juventus, as well as NBA’s Sacramento Kings and the Ultimate Fighting Championship (UFC), developed Ethereum-based digital assets as a new way to keep their fans engaged.

Now, the Ethereum Foundation prepares to transition from a proof-of-work (PoW) consensus algorithm to proof-of-stake (PoS) and its utility may expand further. The upgrade is expected to solve the scalability issues that the network has faced throughout the years and transform the crypto-economic incentives by rewarding ETH holders.

The launch of ETH 2.0 is scheduled for Q3 2020, but as speculation mounts around the upcoming hard fork, demand for this altcoin is assumed to rise.

“It’s hard to be bearish with Ethereum staking coming soon. I suspect there will be a lot more ether staked than the projected 10-30 million. Perhaps even 50 million-plus if a lot of people select to stake through exchanges/rocket pool,” said David Schwartz, a senior software engineer at decentralized exchange Nash.

While market participants grow overwhelmingly bullish about what the future holds for Ether, different charting patterns validate this momentum.

Prices Continue Trending Up

Despite the downward pressure on Ethereum since the beginning of the month, its price continues trending up from a long-term perspective. Based on the 1-day chart, the smart contract giant is contained within an ascending parallel channel that began to take shape during the March market meltdown.

Consistent with the characteristics of this technical pattern, each time Ether rises to the upper boundary of the channel, it retraces down to hit the lower boundary. From this point, it bounces back up again.

The recent bearish impulse that Ether went through allowed it to reach the bottom of the channel. If this support barrier continues to hold, ETH could surge to the middle or upper boundary of the channel like it has done it over the past three months.

Failing to do so, however, could jeopardize the bullish outlook and set off the alerts for a steep decline.

Ethereum US dollar price chart
Ethereum Is Contained Within a Parallel Channel. (Source: TradingView)

IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model suggests that bouncing off the lower boundary of the ascending parallel channel will not be easy this time around.

Based on this on-chain metric, roughly 1.24 million addresses bought over 7.42 million ETH between $235 and $242. These price levels represent a massive hurdle that may have the ability to absorb any upside pressure. But breaking through it will increase the odds for an upswing towards $280 since there isn’t any significant resistance in-between.

On the flip side, the IOMAP cohorts reveal that if the current support level fails to hold, the most next significant barrier to watch out for sits around $204. Here, nearly 1.7 million addresses purchased more than 6 million ETH.

Ethereum Faces Strong Resistance Ahead. (Source: IntoTheBlock)
Ethereum Faces Strong Resistance Ahead. (Source: IntoTheBlock)

Due to the ambiguous outlook, the Fibonacci retracement indicator indicates that the area between the 61.8% and 78.6% Fib is a reasonable no-trade zone. This support and resistance points sit at $211 and $245, respectively.

A daily candlestick close above this area may see an increase in demand that sends Ether to the upper boundary of the aforementioned parallel channel.

Ethereum US dollar price chart
Ethereum Sits In a No-Trade Zone. (Source: TradingView)

Conversely, a sudden rise in the sell orders behind this cryptocurrency that allows it to drop below this no-trade zone might ignite a sell-off. Under such circumstances, investors should expect Ether to plunge towards the 50% or 38.2% Fib levels that lie around $188 and $165, respectively.

With the cryptocurrency market on the cusp of its next bullish cycle, it is crucial to understand the significance of the support and resistance levels previously mentioned. Although there is more room to go up, a steep correction can be extremely beneficial in the long-term. It could help flush out some of the so-called “weak hands” and allow sidelined investors to get back in the market.

A new inflow of capital into Ethereum may eventually propel its price to new-yearly highs.

June 16, 2020
Trading

Ethereum Paves the Way For Mainstream Adoption as It Signals Further Gains

Ali Martinez
Ethereum Paves the Way For Mainstream Adoption as It Signals Further Gains 22

Digitex Futures Exchange is gearing up to roll out a new financial product this summer that will enable mainnet users to benefit from Ethereum’s price action. The new ETHUSD perpetual contracts together with the opportunity for zero-fee trading will offer a broader range of markets to our traders, attracting more users to our mainnet and driving demand for the DGTX token. 

For this reason, we have decided to take a look at the different milestones that Ethereum has reached over the past year to determine whether or not it will offer sizable opportunities for those trading it.

Ethereum’s Utility Increases Over Time

The second-largest cryptocurrency in the industry by market cap, Ethereum, has managed to expand its reach to millions of investors worldwide over the past year. Not only Japan’s e-commerce giant Ratuken launched a new mobile app that offers a spot trading service for ETH, but Swiss exchange SIX listed a joint Bitcoin and Ether exchange-traded product (ETP).

The move was meant to provide a “unique way for investors to add the two major cryptocurrencies globally to their portfolio,” according to Amun CEO Hany Rashwan.

As more retail and institutional investors gained access to Ethereum, different organizations across the globe have employed the smart contracts giant’s technology to improve their operations. IKEA, for instance, took part in a commercial transaction on the Ethereum network to facilitate the settlement of an order from a local retailer. Uniswap, on the other hand, listed the first real estate security token and UNICEF, the United Nations’ charity arm for children, launched a cryptocurrency fund based on Ether donations.

Meanwhile, professional soccer clubs Galatasaray Spor Kulübü and Juventus, as well as NBA’s Sacramento Kings and the Ultimate Fighting Championship (UFC), developed Ethereum-based digital assets as a new way to keep their fans engaged.

Now, the Ethereum Foundation prepares to transition from a proof-of-work (PoW) consensus algorithm to proof-of-stake (PoS) and its utility may expand further. The upgrade is expected to solve the scalability issues that the network has faced throughout the years and transform the crypto-economic incentives by rewarding ETH holders.

The launch of ETH 2.0 is scheduled for Q3 2020, but as speculation mounts around the upcoming hard fork, demand for this altcoin is assumed to rise.

“It’s hard to be bearish with Ethereum staking coming soon. I suspect there will be a lot more ether staked than the projected 10-30 million. Perhaps even 50 million-plus if a lot of people select to stake through exchanges/rocket pool,” said David Schwartz, a senior software engineer at decentralized exchange Nash.

While market participants grow overwhelmingly bullish about what the future holds for Ether, different charting patterns validate this momentum.

Prices Continue Trending Up

Despite the downward pressure on Ethereum since the beginning of the month, its price continues trending up from a long-term perspective. Based on the 1-day chart, the smart contract giant is contained within an ascending parallel channel that began to take shape during the March market meltdown.

Consistent with the characteristics of this technical pattern, each time Ether rises to the upper boundary of the channel, it retraces down to hit the lower boundary. From this point, it bounces back up again.

The recent bearish impulse that Ether went through allowed it to reach the bottom of the channel. If this support barrier continues to hold, ETH could surge to the middle or upper boundary of the channel like it has done it over the past three months.

Failing to do so, however, could jeopardize the bullish outlook and set off the alerts for a steep decline.

Ethereum US dollar price chart
Ethereum Is Contained Within a Parallel Channel. (Source: TradingView)

IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model suggests that bouncing off the lower boundary of the ascending parallel channel will not be easy this time around.

Based on this on-chain metric, roughly 1.24 million addresses bought over 7.42 million ETH between $235 and $242. These price levels represent a massive hurdle that may have the ability to absorb any upside pressure. But breaking through it will increase the odds for an upswing towards $280 since there isn’t any significant resistance in-between.

On the flip side, the IOMAP cohorts reveal that if the current support level fails to hold, the most next significant barrier to watch out for sits around $204. Here, nearly 1.7 million addresses purchased more than 6 million ETH.

Ethereum Faces Strong Resistance Ahead. (Source: IntoTheBlock)
Ethereum Faces Strong Resistance Ahead. (Source: IntoTheBlock)

Due to the ambiguous outlook, the Fibonacci retracement indicator indicates that the area between the 61.8% and 78.6% Fib is a reasonable no-trade zone. This support and resistance points sit at $211 and $245, respectively.

A daily candlestick close above this area may see an increase in demand that sends Ether to the upper boundary of the aforementioned parallel channel.

Ethereum US dollar price chart
Ethereum Sits In a No-Trade Zone. (Source: TradingView)

Conversely, a sudden rise in the sell orders behind this cryptocurrency that allows it to drop below this no-trade zone might ignite a sell-off. Under such circumstances, investors should expect Ether to plunge towards the 50% or 38.2% Fib levels that lie around $188 and $165, respectively.

With the cryptocurrency market on the cusp of its next bullish cycle, it is crucial to understand the significance of the support and resistance levels previously mentioned. Although there is more room to go up, a steep correction can be extremely beneficial in the long-term. It could help flush out some of the so-called “weak hands” and allow sidelined investors to get back in the market.

A new inflow of capital into Ethereum may eventually propel its price to new-yearly highs.

Latest News

Expert Tips

Expert Tips: Common Practices Before Entering a Trade

Trading
• Ali Martinez
June 14, 2020

Despite the popular belief that trading is easy, the truth of the matter is that it takes a lot of practice and know-how to become a successful trader. There is a widely known statistic that says that 90% of traders are not profitable. 

So over time, 80% of those who enter into this profession lose money, 10% usually break even, and 10% percent are able to generate returns from the price action in the markets.

For this reason, Digitex is doing everything in its power to help traders around the world reach their financial goals. This time, we want to provide you with different practices that you can employ before entering a trade to minimize losses and maximize profits.

The Power of Knowledge

First and foremost, it is very important to have a clear picture of what you are getting into. In trading as any other profession, education is what separates those who are able to reach their goals from those who do not.

It is essential for traders to not only be aware of the developments around the market and the cryptocurrency of their choice but also focus on learning something new every day. Technical indicators can provide guidance regarding what the future may hold for a given digital asset, but on-chain metrics can help identify what the so-called “market makers” are doing.

With the vast amount of data that blockchain technology provides to investors, it is important to consider diving into these metrics before entering a trade.

Protect Your Capital

People are usually optimistic and tend to discourage the potential of adverse market conditions. But with the unpredictability of the cryptocurrency market, wild price movements can be triggered at any second. Now that the market seems to be on the cusp of its next bullish cycle, having capital to deploy is a must.

Before going long or short on any cryptocurrency, it is critical to assess the risks that are involved. Having a good idea of where to place your stop-loss order before even thinking about the profits, is a great way to stay afloat in such a volatile market.

As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any single trade, and hedge fund managers usually risk less than this amount, according to Investopedia.

Avoid Small-Cap Altcoins

Lower cap coins are known for their ability to post massive gains within short periods of time. Zilliqa, for instance, has seen its price skyrocket over 950% since the March market meltdown. After such an impressive rally, different metrics show that it could be bound for a correction.

Regardless of what happens with this cryptocurrency, what matters is that such high levels of volatility have the potential to pulverize your capital. Imagine that you find yourself on the wrong side of the trend with this type of altcoins that have the potential to surge or plummet significantly within minutes. 

By understanding what is at stake, you will realize that small-cap altcoins pose a lot of risk when traded. But if you still want to try your chance with these digital assets considering investing in them rather than day trading them.

Keep Calm and Stick to Your Plan

The final and most important practice to have in mind before entering any trade is to stay relax and have a solid plan of action. If you were supposed to enter a trade at a certain price and you missed your entry point, don’t worry about it. A new opportunity will likely present itself in the near future.

Chasing trades is one of the best ways to put your capital at risk. Therefore, staying true to your trading plan and maintaining a solid risk management strategy will help you minimize your losses.

Remember that you don’t need to win every trade. Indeed, many traders, including 45-years trading veteran Peter Brandt, only win 50% to 60% of their trades. However, they make sure that their winning trades are bigger than what they lose implementing stop-losses.

So before you enter into your next trade make sure to be aware of what is happening in the market, prioritize your stop-loss order over anything else, avoid some of the lower cap coins, and keep calm.

Digitex’s zero-fee model introduces a unique opportunity to try out new scalping strategies on Bitcoin futures that wouldn’t be profitable on other exchanges. We’re also putting out a ton of educational content to help create more winning traders. Sign up to our waitlist to secure your place in the queue for onboarding to our mainnet, and to receive all the latest news and announcements straight to your inbox.

June 14, 2020
Trading

Expert Tips: Common Practices Before Entering a Trade

Ali Martinez
Expert Tips

Despite the popular belief that trading is easy, the truth of the matter is that it takes a lot of practice and know-how to become a successful trader. There is a widely known statistic that says that 90% of traders are not profitable. 

So over time, 80% of those who enter into this profession lose money, 10% usually break even, and 10% percent are able to generate returns from the price action in the markets.

For this reason, Digitex is doing everything in its power to help traders around the world reach their financial goals. This time, we want to provide you with different practices that you can employ before entering a trade to minimize losses and maximize profits.

The Power of Knowledge

First and foremost, it is very important to have a clear picture of what you are getting into. In trading as any other profession, education is what separates those who are able to reach their goals from those who do not.

It is essential for traders to not only be aware of the developments around the market and the cryptocurrency of their choice but also focus on learning something new every day. Technical indicators can provide guidance regarding what the future may hold for a given digital asset, but on-chain metrics can help identify what the so-called “market makers” are doing.

With the vast amount of data that blockchain technology provides to investors, it is important to consider diving into these metrics before entering a trade.

Protect Your Capital

People are usually optimistic and tend to discourage the potential of adverse market conditions. But with the unpredictability of the cryptocurrency market, wild price movements can be triggered at any second. Now that the market seems to be on the cusp of its next bullish cycle, having capital to deploy is a must.

Before going long or short on any cryptocurrency, it is critical to assess the risks that are involved. Having a good idea of where to place your stop-loss order before even thinking about the profits, is a great way to stay afloat in such a volatile market.

As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any single trade, and hedge fund managers usually risk less than this amount, according to Investopedia.

Avoid Small-Cap Altcoins

Lower cap coins are known for their ability to post massive gains within short periods of time. Zilliqa, for instance, has seen its price skyrocket over 950% since the March market meltdown. After such an impressive rally, different metrics show that it could be bound for a correction.

Regardless of what happens with this cryptocurrency, what matters is that such high levels of volatility have the potential to pulverize your capital. Imagine that you find yourself on the wrong side of the trend with this type of altcoins that have the potential to surge or plummet significantly within minutes. 

By understanding what is at stake, you will realize that small-cap altcoins pose a lot of risk when traded. But if you still want to try your chance with these digital assets considering investing in them rather than day trading them.

Keep Calm and Stick to Your Plan

The final and most important practice to have in mind before entering any trade is to stay relax and have a solid plan of action. If you were supposed to enter a trade at a certain price and you missed your entry point, don’t worry about it. A new opportunity will likely present itself in the near future.

Chasing trades is one of the best ways to put your capital at risk. Therefore, staying true to your trading plan and maintaining a solid risk management strategy will help you minimize your losses.

Remember that you don’t need to win every trade. Indeed, many traders, including 45-years trading veteran Peter Brandt, only win 50% to 60% of their trades. However, they make sure that their winning trades are bigger than what they lose implementing stop-losses.

So before you enter into your next trade make sure to be aware of what is happening in the market, prioritize your stop-loss order over anything else, avoid some of the lower cap coins, and keep calm.

Digitex’s zero-fee model introduces a unique opportunity to try out new scalping strategies on Bitcoin futures that wouldn’t be profitable on other exchanges. We’re also putting out a ton of educational content to help create more winning traders. Sign up to our waitlist to secure your place in the queue for onboarding to our mainnet, and to receive all the latest news and announcements straight to your inbox.

Latest News

Cryptrader

How to Use Leverage with Cryptrader

Trading
• Sarah Rothrie
June 3, 2020

Today, Cryptrader returns with another of his educational videos demonstrating live trading on the DFE mainnet. This time, he explains how to use leverage by calculating your desired position size based on a managed approach to risk. 

Cryptrader filmed this video yesterday when Bitcoin saw some of the most significant volatility since Black Thursday in March. After breaking the $10k barrier along with a multi-year line of resistance, crypto’s biggest asset fell dramatically in a matter of minutes. 

However, as you can see from the video, this volatility creates a feeding frenzy on the DFE! Our 24-hour trading volume topped 15 million contracts yesterday, which amounts to around $115 million traded by 320 users! As we onboard more users, it’s only a matter of time before the DFE is breaking volume records. 

Learning about Leverage

Cryptrader starts off by explaining the purpose of leverage – to allow flexibility in meeting position sizes while limiting counterparty risk and the risk of black swan events. 

To determine position size, you’ll need to consider your risk per trade, as a percentage of your account balance. Risking 1% of your account balance on any given trade is a reasonably acceptable rule of thumb. Secondly, you’ll need to know the number of ticks between your entry point, and your stop loss. 

Cryptrader illustrates the example using a trade of 1,000 DGTX and a five-tick difference between the entry and exit points. 

Now we can calculate the size of the position we’d need to take so that we’d lose no more than 1,000 DGTX if the market moves against us. 

The value of a tick is 0.1 DGTX, so to estimate the number of contracts in our position, we can divide by 10. This means if we select 2,000 contracts, a one-tick movement represents a gain or loss of 200 DGTX. So if we want to risk no more than 1,000 DGTX over a 5-tick movement, then 2,000 contracts is the right position size. 

Now we move to the leverage selection. As Cryptrader is currently set to 1x leverage with an account balance of 100,000 DGTX, and the notional value of one contract is around 190 DGTX, he only has enough in the bank to trade 527 contracts. By applying leverage, he can increase his maximum position size. In this case, he needs to dial up to 4x leverage to create a maximum position size of over 2,000 contracts. 

Changing the Leverage Mid-Trade

Cryptrader also illustrates what happens if you change the leverage when you’re already in a position. Doing this doesn’t alter your potential profits or losses, but it does change the liquidation price. Using only the leverage that you need means you get the maximum distance between your entry point and the liquidation price. 

By increasing your leverage, you’ll bring the liquidation price much closer to your entry point, creating a greater risk of liquidation. The flip side of increasing leverage is that you’ll reduce the amount of margin needed, thereby decreasing the value you’d lose if you do get liquidated.

If you have more questions for Cryptrader about how leverage can mitigate counterparty risk or black swan event risk, then you can tune in to one of his live trading sessions on YouTube and join the conversation!

June 3, 2020
Trading

How to Use Leverage with Cryptrader

Sarah Rothrie
Cryptrader

Today, Cryptrader returns with another of his educational videos demonstrating live trading on the DFE mainnet. This time, he explains how to use leverage by calculating your desired position size based on a managed approach to risk. 

Cryptrader filmed this video yesterday when Bitcoin saw some of the most significant volatility since Black Thursday in March. After breaking the $10k barrier along with a multi-year line of resistance, crypto’s biggest asset fell dramatically in a matter of minutes. 

However, as you can see from the video, this volatility creates a feeding frenzy on the DFE! Our 24-hour trading volume topped 15 million contracts yesterday, which amounts to around $115 million traded by 320 users! As we onboard more users, it’s only a matter of time before the DFE is breaking volume records. 

Learning about Leverage

Cryptrader starts off by explaining the purpose of leverage – to allow flexibility in meeting position sizes while limiting counterparty risk and the risk of black swan events. 

To determine position size, you’ll need to consider your risk per trade, as a percentage of your account balance. Risking 1% of your account balance on any given trade is a reasonably acceptable rule of thumb. Secondly, you’ll need to know the number of ticks between your entry point, and your stop loss. 

Cryptrader illustrates the example using a trade of 1,000 DGTX and a five-tick difference between the entry and exit points. 

Now we can calculate the size of the position we’d need to take so that we’d lose no more than 1,000 DGTX if the market moves against us. 

The value of a tick is 0.1 DGTX, so to estimate the number of contracts in our position, we can divide by 10. This means if we select 2,000 contracts, a one-tick movement represents a gain or loss of 200 DGTX. So if we want to risk no more than 1,000 DGTX over a 5-tick movement, then 2,000 contracts is the right position size. 

Now we move to the leverage selection. As Cryptrader is currently set to 1x leverage with an account balance of 100,000 DGTX, and the notional value of one contract is around 190 DGTX, he only has enough in the bank to trade 527 contracts. By applying leverage, he can increase his maximum position size. In this case, he needs to dial up to 4x leverage to create a maximum position size of over 2,000 contracts. 

Changing the Leverage Mid-Trade

Cryptrader also illustrates what happens if you change the leverage when you’re already in a position. Doing this doesn’t alter your potential profits or losses, but it does change the liquidation price. Using only the leverage that you need means you get the maximum distance between your entry point and the liquidation price. 

By increasing your leverage, you’ll bring the liquidation price much closer to your entry point, creating a greater risk of liquidation. The flip side of increasing leverage is that you’ll reduce the amount of margin needed, thereby decreasing the value you’d lose if you do get liquidated.

If you have more questions for Cryptrader about how leverage can mitigate counterparty risk or black swan event risk, then you can tune in to one of his live trading sessions on YouTube and join the conversation!

Latest News