A Regular Guy Became a Millionaire Using This Crypto Trading Strategy

[00:02] regular guy like you and me, who worked in a call center. When he realized his bills and debts were exceeding his income, he decided to find a scalable skill to turn his financial situation around. The

[00:44] best part is that he started with $ 26 and gradually multiplied it to $ rules. In this video, I'll explain what those rules are,

[01:01] what asset he trades, and how he profits from his positions. In short, I'll explain everything you need to know to understand how a regular guy with no trading experience became a

[01:17] no trading experience became a about the four rules he followed to execute his

[01:30] trading strategy. Then I'll discuss the asset he traded, as it's not the USDT perpetual futures we usually trade. It's very important that you understand this part. Finally, I'll explain the second part

[01:45] of his strategy: the rules he followed. To exit his positions with profits, starting with the entry rules, he followed three very simple metrics to understand and apply to begin marking

[02:02] what the setup would be. The first of these three metrics is the supply init loss. This is simply a metric that tells us the percentage of people

[02:14] who are making money and the percentage of people who are losing money. The black line you see simply indicates the price of Bitcoin, and as you can see, when the price of Bitcoin falls, the shadow becomes

[02:31] redder simply because more people start losing money. Conversely, when the price of Bitcoin rises, the shadow becomes bluer because more and more people are making money. There are even certain moments where the

[02:47] blue shadow reaches the 100 level. Why? Because 100% of the people investing in Bitcoin are making money, since the trend is so bullish that all-time highs are being broken day after day.

[03:01] What Ky is looking for is that at least 50% of the holders are losing money, as this denotes a clear state of fear within the market. So, if

[03:13] We mark a horizontal line at the 50% level. We will find the moments when we can verify that the first of the four rules of this trading strategy is being fulfilled. This rule makes

[03:28] the idea of ​​buying when there is fear and selling when there is greed quite effective. But the best thing about it, and what the trading is based on, is that it somehow mathematizes is that it somehow mathematizes emotion; that is, it doesn't buy when there is

[03:41] fear and sell when there is greed, determining those emotions. According to him, he stipulates that the more than 50% (51, 52, 60, 70%) of people are

[03:54] losing money, the more fear there is. From there, we verify and check that first rule to move on to the next rule. The relative unrealized profit metric shows a green box called the opportunity zone and a

[04:10] red box called the overheated zone. Then it has two graphs. The black graph is again the price, and the blue graph is precisely this relative unrealized

[04:25] profit metric. What it looks for is that the blue graph is within that green zone, since it doesn't... There's not only capitulation among holders, but miners, for example, are also experiencing losses. And the same would happen in

[04:40] reverse when the blue line reaches the light red zone. Here you might say, "Hey Alex, that's all well and good," but the reality is that it's not very clear when to interpret it as a buy or don't

[04:55] buy signal, since the green zone is quite wide and the price often does n't just enter and then exit, but trades well within that green zone. Well, don't worry, because this is simply

[05:10] another check, but everything becomes clearer as we move forward with the last two rules. The third and final metric is the third and final metric is the Nuple Chart. The black line

[05:23] again represents the price of Bitcoin, the red line represents long-term holders, and the orange line is a mix; it doesn't represent any specific characteristic or group. Now, when

[05:36] the red and orange lines fall below the zero line— means we're talking about a good buying opportunity, and in fact...

[05:49] Notice how this has been determined in previous bear markets. Every time we've been below that line, we've been in the final part line, we've been in the final part of the market, prior to a new

[06:04] continuation move, or rather, a new bull run or upward trend. As you can see, it's a new rule that, in a way, attempts to mathematize an emotion—to mathematize the emotion of fear. It stipulates certain characteristics and

[06:19] conditions, in this case through the Nuple Chart, to understand when the price has fallen enough for us to be reaching a capitulation point and that the previous bearish trend is coming to an end, prior to

[06:35] a new upward move. These are simply the three metrics it follows to locate and contextualize, in a way, even mathematizing the emotion of fear. But this isn't enough to execute a position, since there are

[06:48] many parameters that are quite broad and could even be abstract. For this, Kyle puts into practice certain technical aspects already associated with technical analysis, and in this way, he's able to be

[07:03] a bit more precise with the entry point. Starting with two specific indicators, for the first indicator, let's go to trading. View the top left to trading. View the top left where it says "indicators" and type "EMA"

[07:17] because we're going to place an exponential moving average. Once we've added it, we double-click to edit it since we want it to be 200 sessions. We press Enter and do the same, but instead of a 200-session exponential moving average, we use

[07:35] a 300-session exponential moving average. In this case, Kyle is looking for something that, once he has detected all those elements within the metrics we discussed earlier, when the 200-session moving average is broken

[07:50] on the weekly chart, he understands that we are reaching a clear accumulation zone. Then, he uses the 300-weekly moving average, which is the

[08:04] white line, or a significant support zone to find those buying points. He calls the 300-session moving average or the support zone "delegated support."

[08:17] Why? Because they are such strong and important supports that they generate a kind of legacy that helps Kyle find clear accumulation zones. For example, here we can see that if we use this zone from

[08:34] see that if we use this zone from July 2017 and the Combining the July 2017 and the Combining the 2018 bear market with what we experienced in 2020 gives us a perfect diagonal line where the price

[08:47] of Bitcoin has found support on several occasions. Here we have one zone, here we have another, here we have another, and here we have another. When we break the 200-week moving average, we reach

[09:03] accumulation zones. But when we reach the 300-week moving average or that diagonal support zone, we are reaching a legacy support zone. Therefore, we can start looking to execute positions. This simply

[09:19] execute positions. This simply helps him be a little more precise when executing a position, since the metrics are a bit more generic and don't determine with the same precision. They aren't clear enough to understand

[09:34] that these three parameters have been met; it's time to buy. We 're not accumulating; what he's doing is trading, so he needs a little more trading, so he needs a little more precision when determining

[09:46] when to execute those positions. Having said that, and before explaining the exit rules of his strategy, I'm going to explain which asset he trades, since it's a... A very important part of this whole strategy is that

[10:00] the normal thing to do is trade regular USDT perpetual futures, that is, etc. However, what KYY does is trade inverses, which

[10:17] is literally the same as trading a regular perpetual a regular perpetual USDT future, but with the peculiarity that the counterparty is not USDT; the counterparty

[10:30] counterparty is not USDT; the counterparty in this case is Bitcoin. So if you make money, you will be earning Bitcoins. But on the other hand, if you lose money, what will happen is that Bitcoins will be deducted from your wallets. You

[10:44] will find it on your exchange as Coin Margin or Coin Inverse Perpetual, depending on the exchange. In fact, on Bybit, which is the exchange I recommend, and in the first comment and description of the video, you will find the link to open

[10:57] an account. If you go to the top where it says derivatives, you will be able to find inverse contracts. For example, you click on the ETH USD contract,

[11:10] but remember, they are inverses, and right now, at the moment you When you execute a position, your counterparty won't be USDT, but

[11:22] USDT, but IUMs. In fact, notice how on the right side, in the inverse derivatives account section, it shows the available balance and assets in Ethereum, not USDT. This is simply because the

[11:37] counterparty is IUMs. If, for example, you click on ADA (Cardano) instead of IUMs, you'll see how the balance in that inverse derivatives account section is

[11:49] shown in ADAs. It's literally about executing a normal position, but instead of risking USDT, you're risking Bitcoins. Having said that, now that we know which asset this strategy uses, let's talk

[12:05] about the exit rules once it's generating profits. As the price of Bitcoin rises, you'll see the percentage of holders in profit start to increase, and the blue shadow begins to gain

[12:19] ground on the red one. Furthermore, when the holders reach 80% profit and the price reaches the red zone, the overheated zone will be the

[12:31] specific moment when Kyle... Sell your positions, or in other words, the time to sell is when the opposite conditions of what you stipulated are met. But to

[12:44] buy... Remember that below, in the first pinned comment and in the description of this video, you'll find other links of interest, such as courses, tutorials, training, profitable trading strategies, and tested backtests.

[12:57] I personally haven't created this one; I 'm simply sharing it out of curiosity. You'll also find the Bybit link; it's my referral link. Obviously, if you're going to share a platform with someone, don't give them my

[13:11] link. Give them your own. I'll leave this video here. I hope you liked it and that it was helpful, which is the important thing. If so, like, subscribe, share it with friends and family, and I'll see you in the next video.

[13:23] family, and I'll see you in the next video. Goodbye.