Strategy
Clear and precise action plan defining how and when to make trading decisions.
Beginner-friendly explanation
A strategy is a simple plan you follow to decide when to buy or sell crypto. It prevents random trading. Example: You decide to buy Bitcoin every month for a fixed amount, regardless of the price (DCA strategy).
Intermediate-level insight
A trading strategy defines precise rules based on technical or fundamental indicators or specific market conditions to enter or exit trades. Adhering to a strategy avoids emotional decisions and improves long-term results. Example: You use a moving average crossover strategy: you buy when the short-term average crosses above the long-term one and sell when it crosses back below.
Advanced perspective
A sophisticated strategy incorporates a combination of technical indicators, fundamental criteria, and quantitative analyses. It also includes precise risk management, position sizing plans, and dynamic adaptation to changing market conditions. Example: You use an algorithmic strategy combining RSI, MACD, volume, and historical volatility, with automatic adjustment of stop loss and position size according to conditions detected by your quantitative model.
Trading Basics
strategy, trading plan, entry rule, exit rule, technical indicators, risk management, position sizing, backtesting, algorithmic strategy