The Emporos Style
The schematic to our profession of speculation
So we are almost nearing a more considerable amount of followers. Slow and steady, I used to run a big account, so I do not mind our approach.
However, as we are starting to grow, as most of you are aware, this space is filled with charlatans and people who have no idea what they are doing. After being in the game for over five years now, I am learning how selectively deal with these types of people.
I want to help others learn this art, save them money from the clowns, and hopefully, you leave with a new idea or fresh insight into how a system or concept works. Below I will share three concepts and three strategies that should help you all in your trading journey.
The Concept of Timeframe, Ego, and Entry
The timeframe is everything when we post an idea. For example, our best work at Emporos was when we shared the short at 56,000 Bitcoin down to 30,000. You can read about it here. Most traders know timeframe is one of the most important parts of trading. Making profit over being right is second. It is difficult because sometimes the ego is involved. The third is your entry into a position. You only control when you enter a trade. Everything else you are not in control, and for some, that is scary and hard to handle.
For example, if our macro analysis says short bitcoin over 50k and buy near 30k, it does not mean you can’t have short-term momentum plays, day trades, and quick scalps near the 30k level. Being wrong is part of trading. It is going to happen all the time.
The point of me even writing this is to cut out the inexperienced jackals, cherry-picking excellent ideas, and the pump trolls claiming buy buy buy every time price hits a support level.
Here is an essential starter guide for veterans and new traders alike.
First, you have your capital denominated in the currency of your choice USD EUR BTC
For example, say you have a bitcoin portfolio. Your job is to grow bitcoin, or it is to grow USD. Please do not mix these up. The organization is critical. Throwing all your money around is not going to get you rich.
I recommend you have a bitcoin cold storage where your goal is to gain more bitcoin and occasionally allocate into other cryptos.
I also believe you should have your trading portfolio. You can have it in any currency of your choosing depending on your risk; for the ease of this article, let’s say the trading portfolio is in USD. USD makes it easy for everyone to understand.
The Profit Ratio
The next strategy I believe everyone in this business should understand is the profit ratio. Daytrading and scalping have their profit calculations. What we do is for every idea, we assign a possible profit ratio. For example, we believe the price of oil is going to continue to go up. If we are wrong, we lose a predetermined %, and if we are correct, we gain a predetermined %. If we do this properly and manage the trade correctly, we should have a positive profit ratio of, say, 3:1. So $100 risked, we gain $300 at the conclusion.
Now it is hardly that simple. However, the end goal should be a positive profit ratio. It is nice to experiment around in tradingview. Tradingview has a way you can calculate your trading account size and the trade profit/loss calculations. Now the art, is how you manage the trade while keeping the risk within your parameters. Invalidations, Stoploss, all of that is what makes the game of speculation and trading difficult. People take an enormous risk for huge profits and end up going bust a day later. The game is to survive, survival until you come across an idea that is so powerful you can jump right in and get enough profit to make it worth your while.
Now, if you read to this point, I hope you enjoyed our quick summary of how we do things. I also am glad this will clear up much confusion out there.
Thanks for reading