Creating a Market Bias
If in sync:
• risk more + trade more
If out of sync:
• risk less + trade less
🧵↓
1) The two main types of biases:
Directional Bias:
• long ←→ short
Structural Bias:
• ranging←→ trending
The point of having a bias is like picking your dartboard before throwing the dart.
You can have the same skill, but a bigger board will still be easier to hit.
2) Directional Bias
If you are trying to throw a dart at red or green, then it's going to be:
• easier to hit green, harder to hit red
• harder to miss green, easier to miss red
The dart is your trade
↓
3) Structural Bias
Compare how many coins are Trending v.s. Ranging.
• sadly no public screener can easily do this in the click of 1 button... yet!
• note: I'm looking in BIG NOTICEABLE skews, not small ones.
Tools you can use for this:
• @velo_xyz
• @OrionTerminal
4) How the bias impacts the "Minimum Grade before Entry"
Returning back to the dart throwing example, imagine you weren't the one throwing the dart.
Imagine you had to trust someone to throw the dart for you.
Explanation ↓
5)
If it's "Easy" for a specific strategy:
• I can get away with B+ setups
If it's "Hard" for a specific strategy:
• I can only get away with a perfect A+ setup
Market Conditions are the dart board.
The Strategy is the one I'm trusting to throw the dart
↓
6)
If you want more threads like this feel free to DM me your ideas.
I want to know which topics you want to improve at.
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