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- Trader SalsaTekilla has revealed details about his Bitcoin trading strategy and the tools he used to turn 0.2 BTC into $100,000 in BTC.
- SalsaTekilla set a main support level for the Bitcoin price from $11,300 to $11,350.
The renowned trader SalsaTekilla conducted an interview for Luke Martin’s podcast Venture Coinist. Famous for turning 0.2 Bitcoin into $100,000, SalsaTekilla described his trading strategy. Noting that his strategy is not based on gambling and focuses more on risk reduction, the trader explained the following:
I think of the market in (terms) of a constant dynamism in the sense that whenever I enter a trade, my expectancy changes. Let’s say I enter at $11,800 a long position and I’m targeting $12,000 and my stop is $11,700. My risk-reward [ratio]is two to one […]
As the market moves, my risk-reward also changes. Let’s say we’re at $11,900. Suddenly, I’m risking $200 to make $100. So I always evaluate my positions whenever I’m in one.
Trader reveals how to get higher profits in Bitcoin (BTC)
While digging deeper into his strategy, the trader revealed that he uses different tools that allow him to make an efficient entry and exit from a certain Bitcoin position. SalsaTekilla uses a technique known as “scalping” which is based on taking advantage of volatile market moments to make the most profit in a relatively short period of time. For SalsaTekilla this can last between 2 and 3 hours, therefore, he stated the following:
The longer you’re in the trade, the more outside factors can affect it…. If you are in a trade for days, you give the market a lot more time for such news that affect the market to change conditions. The more time you’re in [a trade], the more risk you take of outside factors affecting your trade.
Furthermore, the anonymous trader put more emphasis on the tools he uses for trading. Among these, he recommended that new traders and investors should have a decent source of information to make informed decisions. In addition, the trader said that he does not only use Japanese candlestick charts, but also on-chain analysis, market statistics, order books and any other tools that allow him to make the best decision to establish a position in the market.
The trader also pointed out the importance of adjusting a stop loss to the losses and the risk that the trader is willing to take. SalsaTekilla recommended taking low risks, not borrowing money to trade and using only money that the trader can lose:
If you don’t have spare money to trade from and to live off, you have a way lesser edge in a sense that if you’re pressured to make money and you need to make money trading to live, you’re going to have a lot of pressure on your shoulder and you might take some shit trades.
About the Bitcoin price in the mid-term, the trader recommended keeping the focus on $11,400 as a “liquidity pool” because of the significant amount of stops below this level. Any drop below this level, SalsaTekilla said, could lead to a “bloody” fall over the next 24 hours. At the same time, he said that the $11,300 to $11,350 range is a key support level.
Below you can see the complete video of Luke Martin with SalsaTekilla: