And hello everybody and welcome back to the Daniel Bruno $10,000 Bitcoin day trading challenge today is the 6th of November 2017 and it's 1530 zulu time Today is Monday, and it's a great time to have a look at the action of today We're going to talk about how a Hundred thousand dollars a week is entirely realistic When day trading Bitcoin and not only are we going to do that? But we're going to reduce the volatility of Bitcoin At the same time that we're doing that now that might sound like an impossible task But I'm going to demonstrate how that's done and the the first thing we're going to do in this conversation is we're going to have a Brief a brief a summary of the of the fundamentals

See news updated every 10m at wwwfxprobitcoincom Now that bitcoin is over 7,000 We're going to talk about the fundamentals the technicals trading and risk management Those are the four elements that are essential to trading profitably as I have said in the previous videos of this session going back or rather of this series going back to August so so let's look at that and understand and by the way I am qualified to give trading advice and I have been in financial markets since 1999 so I have some perspective to give to the exciting action of Bitcoin and And and make a an informed opinion about how much of it is a bubble how much of it is a lot is a hype and how much of it how much of the price is actually justified by what we would call fundamentals which are Different as I have mentioned numerous times previously the fundamentals that go into Bitcoin eg Metcalfe's law the the the value of a of a network growing at a at a rate that is More than one to more than a one-to-one correlation with the expansion of the number of users Along graph it's not quite the square It's something less than the square

It's a particular formula that That mr, or dr McLeod Metcalf worked out years ago long before the internet or a Bitcoin or anything Like that now in the course of this discussion today We're going to we're going to make a couple of assumptions first of all that we have a portfolio of 200 bitcoins Okay, so where we have a portfolio of 200 bitcoins to play with All right, so we're gonna We're gonna We're gonna talk about that and Then I'm going to explain just in kind of a back-of-the-envelope kind of a Kind of an assessment just with without getting into too much detail in this brief conversation How a hundred thousand dollars Increase in the net worth of the portfolio or the assets under management is entirely realistic Given a portfolio of that size, which would be approximately 1

4 to 15 Million or if if Bitcoin is 7,500 it would be a 17 million, so we're looking at 14 to 17 million dollar value of a portfolio just holding two hundred bitcoins today on the 6th of November so there are a lot of things that are going on with the fundamentals the segwayed fork is coming up and that's certainly driving a lot of speculative interest in the in the Bitcoin price as you can see here, it's $7,300 and Which is actually down from the high as you can see three and a half percent in the last? 24 hours and then there's a theory in Bitcoin cash which is on a tear ripple light coin – et cetera and Later on I will draw charts of these other altcoins for that for the moment

I've only Had the opportunity to to look at classic Bitcoin or Bitcoin core, which is the first on the list there? so the the Segregated witness said two times the blockchain size or the block size Fork is coming up towards the end of the month, and that's driving a lot of interest because it'll be a one to one There'll be a one to one Dividend everyone who owns a Bitcoin or a fraction thereof will be? Compensated with the same amount in a Segwit coin, which will have its own value So this is again as I've mentioned earlier This is another planet With different laws different laws of physics here where instead of a stock split and dividends etc there are different different rules that apply to To this valuation of the Bitcoin Recently in the last number of days district of Chicago Mercantile Exchange has decided to allow futures on on Bitcoin which is Could potentially drive Funds that have billions of dollars in assets in the Bitcoin which would cause a liquidity squeeze which would potentially cause the price of Bitcoin to increase by another factor of ten or even a hundred so Bitcoin of 50,000 Bitcoin a hundred thousand or more is is realistic From every point of view I will explain some of the reasons for that and I add watch the the other parts of this series that are that I've done hitherto as well as the the the series the sessions that will come after this to Listen to my reasoning for this Okay, so here You can see the various different coins the most popular on this coin market cap dot-com website, which seems to be the the go-to site, and is very influential as far as Whatever it says for better or for worse or however true The information is it may as well be true the gospel truth because this is where people are looking To see a market cap of a coin and the value of a coin and volume and so on so this is the touchstone And always make sure that you see the HTTPS with the gold lock the green the green gold lock in the URL bar But this is this is it you can see the various other coins some of which some of the old coins have had amazing Run ups of 30 to 40% in the last week so this is just Unprecedented and does not have a parallel in any in any other kind of markets and one of the things that I'll say as well at the outset is that there's there's no correlation Not that I'm aware of yet between Bitcoin and other assets metals or commodities or equities or what-have-you, it'll be very interesting to see at some point when there is a correction in the equities when You know the Nasdaq and the Dow etc when they correct by I don't know five ten fifteen or twenty percent Probably as interest rates on the dollar or raised in 2018 it would be interesting to see what how that? affects Bitcoin Another Another piece of news is that the Argentina futures exchange Rofex is talking about accepting Bitcoin futures as well following the footsteps of the Chicago, Mercantile Exchange so One thing that bitcoiners need to keep in mind is that as Traditional investment vehicles get into Bitcoin it they they may be There may be bitcoiners may want to be careful what they wish for because when these Players get into Bitcoin They they are sensitive to To market indices that I've just mentioned, and if there is a Downturn or a correction in equities Then they would be under pressure to pull money out of Bitcoin so if you have funds that start getting into this investment funds that Heather to have not been allowed to get into Bitcoin because it's it doesn't meet their parameters sir pension funds in particular conservative funds that will only invest in in certain types of vehicles You know now that bitcoin is on the CME if they get into it These funds get into it they were they they they are sensitive to to what happens on Wall Street and That'll that'll start to effect so if there if there appears a correlation at some point in the future between Equities and Bitcoin that'll be the reason why Okay And let me mention as well wwwfxboss

info if you made less than a hundred thousand dollars last month and you should be checking us out because our forecasts and trading advice and risk management advice Can can make your fund that can make your day can make your year? that's wwwfxbossinfo which is my website and And let me also mention that in the financial press there are warnings of Bitcoin bubble financial advisors are coming out and warning people that for example in 2000 before March of 2000 When taxi taxi cab drivers were talking about day trading? That that was a sign of a top and now we have Rappers and very young people in their early 20s Making music about crypto currencies and so on and so that could be interpreted as the sign of a top Or the sign of a bubble now if you really want to be smart about it You could take a contrarians contrarian view and say that That that those kinds of Forecasts and warnings are usually early So when the financial press and financial advisors and gurus and talking heads on TV Tell you to get away? You it's usually some time before There's actually a downturn in that equity so I Think that the other the other thing to keep in mind is that there's a real chance of missing out on this if if you Don't get into Bitcoin and crypto currencies You're potentially losing out on on a gold rush and You have to really weigh, you know Where else are you gonna get returns like this? so If you have some money to play with if you've got some money to lose I would advise you to put it into crypto currencies now I'm not telling you how much because that depends on your individual situation, but certainly money that you don't need money that you may have Earning a percent per year or or something thereof That doesn't even keep up with the real rate of inflation in u

s Dollars and certainly if you're in another currency for example argentine pesos And there's there's no reason why you would stay in argentine pesos or brazilian Reality be you would want to get you would definitely want to get into the crypto currency so with that said let's have a look at some of the the technicals now and so come What we have here is a weekly chart, it's easy to see that this is a strong uptrend observe that the That the opening there are a lot of things that you could say about this look at the opening of each week the opening of each week is At the close of the prior week, that's true here That's true here That's true here That's true here That's true here Since this uptrend Okay, so this is this is going back three weeks well more than three weeks actually and There you go, okay, so If we're if we're talking about a portfolio of 200 bitcoins, okay? We put 100 of them aside and take them out of trading put them in cold storage Okay, so that takes us down to a hundred so? We've got a hundred bitcoins were that we're going to trade with that We're gonna play with and we're looking at this all right so that means that for every dollar increase in the price of Bitcoin we've got a hundred dollars Because we've got a hundred bitcoins that we're playing with right so Observe here that we've got On this on this chart

We've got a Clear of support and resistance here, you can see This this area here around 50 200 and then the area The area around 6100 as well, so around around even numbers and Above just above them you're gonna find the major Support levels at this point here You can see this is the beginning of the uptrend on the 12th of October now, this is a daily chart Okay, and so this is Here at $4,800 just on the 12th of October three weeks ago $4,800 so that means that with with $100 I mean 100 bitcoins and today's price at 70 300 we're talking about a $2,500 gain per Bitcoin So just by doing nothing Well not really doing nothing but by by not Going long or short we're looking at 25,000 No Twenty-five Twenty two hundred and fifty thousand dollars just For holding it again 100 bitcoins from 48 from forty eight hundred 273 is $2,500 and $2,500 Times 100 is two hundred and fifty thousand dollars, so the key would be to know to get in here that Was the key that and and this was a clear signal if you go back and watch my previous videos you'll see as well Which I will try to do these Daily, I'm trying to get enough time in the day where I can do this daily Okay, so that it'll be really clear This series is intended for professional investors It's not intended for amateurs if you are an amateur if you are An individual person who does not have? Is not a highway a high net worth individual then this is for educational purposes only But if you are a fund manager or professional investor I'm talking to you right now, okay, so With with coinbase and Bitpay and other services It's liquid

You can get out of Bitcoin and and get into cash That day So there is no reason not to be in this Again we're looking at daily charts Starting out with the monthlies which we don't need to see right now monthlies dailies hourlies and a 5 minute chart looking at expected range Looking at the moving average we set a 21 bar Moving average, and we're using that as a signal as well as a buy or sell When it's above what breaks above that's one of the signals to go long and and the opposite is also true Right And And you know after this run up here in this area, which is again the daily chart We're looking for some consolidation Which we've had in the last 48 hours You can see this minor correction which isn't even 23% of this move so there's it's so bullish that we may not even see a 23% which would be the first level that we would look at as far as a correction You can't even wait for it for a correction to to go long because you'll miss the boat So we're looking at some sideways movement right now the target is 8,000 we're gonna see $8,000 Bitcoin very soon This week or next week certainly this month unless the trend changes And they're not you know another indicator by the way the fundamentals are the are the The outrageous prices that people are paying up to buy bitcoin if you go to the exchanges The fees that people are paying there is a markup of 10 percent or more just to buy Bitcoin now That's that's how much of a frenzy there is To get into Bitcoin on top of the fees the if it's by credit card there are huge fees associated with that And so what I've done here this line that you can see going up here is a support and resistance line which is It's a tangential line That gives us some clues You can see an expanding triangle inside of Five waves and there here We are looking at the the Hourly chart, which you can see the consolidation pattern at the top, you can see the run-up in this bar Over here this this was that That October Signal it'll go long when this broke through right there Well

No that was that actually came afterwards This is in the 6300 Range It looks like well there have been multiple Signals to go although long this was a signal to go long this formation was so was this one He just getting one after another after another after another on this chart And So again, we've got we've got a hundred bitcoins set aside And then we have another hundred bitcoins that we're playing with here so we're looking for a place to go long and We're looking for a setup that's That's gonna look good Ideally on a 5-minute an hourly in a daily chart That's only three charts and of course on the weeklies will we can assume that that'll be? That'll be looking good As well that everything will be Looking nice to go long right so really what it is is waiting for that moment and depending on where that is we'll know where to put our stop I Think that in this situation if we're trading on a 5-minute chart We would want to put our stops just below the wick on the hourly charts We would want to look back 24 to 48 hours look at the lowest point on the lowest indle Within that 48 hour period instead of stop there At the same time looking at what that loss would be within the context of the portfolio so if we have a hundred bitcoins and the big coins are $7,500 that's a 750 thousand dollar Amount of coins that were that were trading Okay, so we would want to keep we won't always want to make sure that the stop is It's not going to take us below 5% so we would Hopefully we wouldn't we wouldn't want to have any open Orders that are losing more than 30 $2,500 just as a as a back-of-the-envelope rule of thumb So you would you would want to make sure that at the time that you go long? That that candle that you choose To set your stop, it's not going to take you below 5% 5% loss of your trading portfolio Right so again say if it's a 750 thousand dollar Portfolio, and if you are in the red by thirty two thousand five hundred Then you're down by five percent, and you would have to get out you'd have to close the trade with a five percent loss to your portfolio That can change as volatile as as a bitcoin is It's hard to get around it because you there's there's so much Volatility there the swinging back and forth now as I mentioned at the outset we have 200 Bitcoin So by first of all we're only trading with a hundred of those So in essence what we're doing is we're cutting the volatility in half Because if we have 200 bitcoins and we take a 5% loss on the 100 bitcoins in an unlucky trade Well, then we're down two and a half percent in our portfolio so We are reducing the volatility of our total portfolio By not trading with the full This is just one of many ways that we can go about this so that that if the worst happens We've still got plenty to play with and to recover with and that's really what? What the first rule of trading is is not to lose money? If you don't lose any money Eventually you'll make something Because eventually it will go your way, but the key is to get out Before any real damage is done and Finding an entry point for that to happen So The risk mates, it's the risk management So we're essentially trading with half leveraged and what I've done here on this chart You have draw I drew this downtrend line

You can see that a Bitcoin is on the hourly charts it's in a downtrend at this point in time and We want to break through this line which is about a 45 degree angle downwards here You can see the top so when we break through this line and assuming that we are above the 21-day at 21 bar moving average, and we've got good volume showing that would be a signal to go long the timing to go long would would depend on the five-minute chart, so we drill down to the 5-minute chart and Then look for an entry there So when all of those? Conditions are met as well on the 5-minute chart, then you would go along As far as getting out we'd look for Look for a reasonable target and then take 50 percent off the table fifty percent of the gains off the table again because of the volatility so with when we when we reach a certain target for example if our target were up here at 74 or 40 and we were to for example if we were to go long if we got a signal to go long here at 72 40 then we would take 50% of our gains Here at $200 above our entry points, so that would be a gain of $200 per Bitcoin and With 100 bitcoins that would be $20,000 So you can see it's not difficult to make $20,000 or even $100,000 in a very short period of time with with this kind of volatility and Bitcoin is responding very well to technical analysis, so you can predict Fairly well what's going to happen? To the price by by reading these charts And Again my website is FX boss dot info if you want to Trade better if you want to Manage your portfolio and manage your risk then get in touch I can show you How that's done? How you can do it? How you might be able to do it better So Risk to reward ratio again, so looking for Looking for that entry looking for that entry where we've got confirmations on the 5-minute the hourly and the daily charts Where we are above support support is holding ideally after test of a support and above the 21 day 21 bar moving average on all three time frames and Then we want to look back far enough Where we can set a stop that's not too far away from the entry point ideally and Keep that potential loss To no more than five percent of what we're trading with and At the same time look at a target That's going to give us a good risk to reward ratio, so if I'm at 7,200 and I can Say that my stop is at 70 100 And I'm looking at a target of 70 400 Then I've got a two-to-one Risk to reward and I would get out with 50% at 7400 and continue to ride it up To whatever it goes to but at least I've got my 70 I've got half I've Got half, which would be 50 times 200 is 10,000 So I would take my 50 Bitcoin profit With a $200 gain, and that's very easy to do in less than a day so with 50 bitcoins You need a $200 move to make $10,000 It's easy that can be done in an hour or a couple of hours and If it continues up and you're looking at $10,000 plus so It's it's really that simple $100,000 in one week entirely realistic if you've got 200 Bitcoin if you're only playing with a hundred bitcoins 750 thousand And if you want to do that let me mention to you wwwfxprobitcoin

com is the ideal place When you buy Bitcoin at wwwfxprobitcoincom You don't pay any fees you don't pay those outrageous fees that they're at the exchanges commissions none of that whatever the Bitcoin price is on on coin market cap That's what you'll pay at wwwfxprobitcoincom here

You can see some trades in in this portfolio that I'm managing New Zealand dollar the Mexican peso the yen Bitcoin you can see went long Bitcoin on the 13th of October That's one tenth of a of a Bitcoin the unit size so it's up by $1700 New Zealand dollar on the 19th of august up by $4,200 just on one lot and this is with Leverage of 400 if you want to trade any other cryptocurrency you've got 800 to choose from at wwwFXProBitcoincom just go to the platform settings trading Symbols and click on the the coin that you want to trade and it'll be added to your to your trading desk and Then you can go long or short You can short Bitcoin This is the only platform that I'm aware of where you actually have a contract to go short Bitcoin so if You if you if it does go into a downtrend and you want to play that then you can you can short it or if you want to hedge your long positions again, I'm Daniel Bruno chartered Market Technician My website is wwwFXbossinfo this video is for profession traders and fund managers in particular hedge fund managers, I'd love to talk to you and And help you increase your Assets under management, and your your returns

I would like to see you outperform your peers and outperform the market I can help you to do that and in various ways Like and subscribe the video, please leave your comments your questions down below, I'll respond to them as quickly as I can and It's been great See you next time Bye Bye