Your trading performance is a number not a story

(unless it's total bullshit)

May 26, 2022

Your trading performance is a number not a story.

It’s not about making “great calls” or predicting the market.

Here’s all the trades I took on the Crypto Salary System in the last week.

Just an average week…14 trades for 8 winners and 6 losers.

Took around 5-10 minutes a day to do.

I risked $1000 for each trade, and made $16000 from my winning trades and lost $6000 from my losing trades. (less a small amount of trading costs)

At the end of the week my profit was just under $10,000

See what I didn’t have to do here….

  • I didn’t have to know anything about coins or blockchain.

  • I didn’t have to become a fan of a coin and cheer for it like a football team.

  • I didn’t have to care whether the market went up or down

  • I didn’t have to sit paralyzed with fear while my account was decimated from some external event (like LUNA imploding)

So you give up all that childish garbage. 

No thrill of victory.

No agony of defeat.

No humble-brag posts on facebook.

You just stack the cash.

Sustainably and repeatedly…

Like a professional.

OK let’s get down to it.

There are two fundamental problems with trading crypto.

Problem 1 - Do I bet that the market goes up or down?

Problem 2 - Which coin do I bet on?

Let’s solve BOTH those problems at once!

One of the strongest edges in finance is POSITIVE CARRY, which is the interest you get paid to take a trade.

This exists in all traditional markets AND crypto

  • In FX it’s the difference between the interest rates of the currencies you are trading

  • In Futures it’s the difference between the spot price and the future price

  • In stocks it’s the dividend you get paid

This is a powerful incentive to trade in one direction, so unsurprisingly the big banks, hedge funds and whales tend to like doing it.

The reason in crypto is counter-intuitive.

Let’s say that you own a pile of bitcoin. You are taking the risk that Bitcoin goes down (like the last 8 weeks).

You can hedge out that risk using Crypto Perpetual Futures, and get paid the positive carry (the funding rate) while taking no directional risk.

For many traders the idea of earning 30-100% per year without betting whether crypto is going to go up or down is hella attractive.

Because of this, the weight of big money is in the direction of the positive carry.

And there’s no rule that says you can’t just bet alongside the big boys… since we know that they mostly win.

Let’s sort our system trades into two buckets… with positive carry and with negative carry

Clearly the positive carry trades make ALL of the money, the rest are just a wash.

OK great… that’s it.

That’s all I have. 

Srsly… that’s the box and dice right there.

Having the funding rate in your favor juices the edge by orders of magnitude.

And it solves the two big problems with trading.

Problem 1 - Do I bet number go up or number go down?

Problem 2 - Which one of these stupid coins do I bet on?

Here’s how it works.

You download the funding rate data. You can get it from http://www.ftx.com/funding, coinglass.com, any broker or a bunch of other places… but I have a fancy-pants spreadsheet that downloads it for me (I’ll give it to you in a bit)

It just prints a list of the coins with a bullish edge and a bearish edge in order.

I just start at the top of the list and keep going down until I have a trade.

What’s the trade?

It’s the same simple and mechanical price action setup I’ve been using for a decade now.

Works great, has a mountain of evidence behind it.

You plug that price action setup into the funding rate and …

HOLYFUCKSHITBALLSITPRINTSMONEY

I’ll show you the price action setup tomorrow

If you want to learn this from me FOR FREE, with nothing held back.. I’m holding a live event on 16th June 7pm EST.

Scott

P.s. take a copy of this sheet to get the funding rate data automagically like me