How much can a novice investor earn from trading? Part nine. Trading (continued)

We continue the series of publications about trading in order to understand in practice how much a novice investor can earn using only the forecasts published on our website. To understand how useful they are, we decided to conduct an experiment and simulate a situation in which a person who only knows about trading that he needs to “buy cheaper and sell more expensive” tries to earn additional income in his free time from work by investing part of his funds in cryptocurrency trading

Last time, based on a forecast that was only half fulfilled, we managed to earn only 16 USD. Today we will talk about our attempt to make money using analytics, published on July 27, 2018

Then, the price of Bitcoin, after declining on negative news from the SEC, set a minimum in the support area of 23.6% fib (7767.00 USD) at the point 7798.00 USD. 

The forecast stated that if a stochastic buy signal is formed in the oversold area, you can follow a bullish strategy with the goal of growing to 8200.00 USD and above. 

Based on this, we decided, after the indicator signal, to buy the entire amount of BTC and sell as soon as the price reaches the level of 8200.00 USD, because the article did not say anything how much higher the price could rise. 

After waiting for the fast blue line to cross the slow red line at the border of the neutral zone, we placed an order to buy 0.0942 BTC at the rate of 7900.00 USD. Immediately after our order was executed, the price dropped to the level of 7800.00 USD, but then began to rise. Within an hour and a half, the level of 8211.00 USD was reached and our sell order was executed at the rate of 8200.00 USD, which we placed immediately after the purchase. 

Thus, within two hours, in the amount of 0.0942 BTC, we managed to earn approximately $25. 

Here is the full report in numbers:

Incoming balance before the start of trading: 746.24 USD

Expense

744.18 USD - purchase of a deposit 0.0942 BTC at the rate of 7900.00

0.0001884 BTC - purchase commission ( 1.49 USD)

1.542 USD - commission for the sale

Receipt

769.35 USD - credited to the account from the sale 0.0940116 BTC at the rate of 8200.00 (including the commission on the sale)

The total balance on the account was 771.41 USD

Within three hours, we increased the balance on the trading account by 25.17 USD (771.41-746.24=25.17)

After taking profit, the price of the pair continued to grow and reached a maximum at 8275.00 USD. However, after the pullback it stabilized at approximately 8200.00 USD. We can say that the forecast was completely fulfilled and allowed us to earn 25 US dollars in a short period of time. 

We continue to monitor the forecast and look for new entry points into the market.