Trading system essentials

In the previous chapter, we discussed holding your assets in dollars versus holding them in Bitcoin and I explained how even if a strategy loses a total of 1% per month, if BTC is rising by 4% in 1 month, you’ll have made a 3% profit in dollars for that month.

You need to be very careful when checking for strategy performance, as anyone showing you a strategy can show it against Bitcoin or against the dollar (based on which looks more profitable). They may also demonstrate a tiny, statistically insignificant sample (such as a live trade of 15 minutes) or showcase a strategy that was effective in a bear market during recording but may not work in the current bull market, among other situations.

Thus, in order to protect your money and invest successfully, I’d recommend you find your own edge in trading. This doesn’t mean you need to develop a strategy from scratch, but it does mean that you need to intimately know each strategy that...