Besides DeFi and cryptocurrencies, another major development that has grabbed public attention is ChatGPT.
The bot can make logical inferences if presented with data from the indicators and can even analyze multiple indicators to make an overall inference. Hence, we will modify the entry rules and enter when the price has retested either of the moving averages as resistance or support and when the RSI fell below neutral 50.
Moreover, they would cost trading fees and eat into the scalper’s profit, which is another factor that highlights how dangerous scalping can be.The bot refuses to venture into the business of predicting crypto prices in future years, even as a fun pursuit. To test the capabilities of the bot, I used a jailbreak method a
Diversification is necessary because crypto is a highly volatile market. The assets are, for the most part, positively correlated with Bitcoin. This means that investors could look to allocate only a minority of their funds toward crypto-assets, which would be anywhere from 5% to 50%. Having one’s net worth in crypto is highly risky.
To survive, the amount of capital risked per trade must be able to withstand a losing streak, which will be based on the win rate. Even if the trades you take are amazing with 3:1 or 4:1 risk-to-reward, it doesn’t do a lot of good in protecting your capital when the market seemingly has your number. This means information about what kind of trade works most often for you. Long or short? If long, could the ones where RSI>50 on both M5 and M15 be another factor you want to check before looking to take long positions since this confluence appears to give your trades more success?Implementing a journal can answer these and many such questions. Another tool that ChatGPT can aid in creating is a position size calculator.