Preface
This document will get you started on your trading journey. Before you start clicking buttons it is
important to have the necessary mindset that will set you up to be a highly successful trader.
There is a common misconception that to be a good trader you simply need to be told by an
expert when to buy something so that you can throw a large amount of money at that thing and
make a huge profit.
This is the main reason that the majority of traders fail.
The other common trap that traders fall into is thinking that taking losses is part of the game.
The problem with teaching yourself to accept losses is that you will continue to lose.
The secret to actually being a profitable trader long term is in your risk management.
We will break this down for you in an easy to use methodology so that when paired with the
EPIC software signals you should have at least a 90% win rate in your personal trading.
So before you take your next trade, tell yourself that losing is unacceptable.
Know your risk at any given time (which we will tell you) and follow our signals with an
appropriate portion of your bank roll.
You will find, like the other traders using our system, that your wins will pile up while your losses
essentially disappear.
Basics About Crypto Futures Trading
Before trading crypto futures you need to understand some basics.
Futures allow you to borrow funds against your account balance to purchase more of an asset
than you otherwise could.
This introduces a multiplier into your trading equation that will increase or decrease your returns
to a proportional market move.
(A 10x leveraged position will move by 10% if the asset moves by 1% and would be liquidated if
the asset drops by 10%).
Crypto is extremely volatile even without leverage, so you do not need to use leverage to
make a significant return.
There are two options of leverage settings on exchanges – isolated and cross margin.
Isolated margin will only risk the margin that you give to a position.
For example you spend $100 at 10x leverage on BTC so your total position size is $1000.
The only part of your account that is at risk is the $100 of margin that you put up to open that
position.
A 10% drop will automatically liquidate that $100 but the rest of your account will be untouched.
With cross margin your entire account is available as margin for your position.
So on that same $100 10x BTC position, if BTC drops 30% your account will be down $300 but
you will not be liquidated unless your account balance goes to zero.
It ultimately doesn’t matter what cross margin leverage setting you choose as long as you keep
your total position size at a reasonable level.
For example – your account size is $1000, your leverage setting is 50x and you open a position
with $2 of margin so your total position is $100 or 10% of your account.
You must calculate your position sizing relative to your account size with every trade.
For the trading system we are teaching, cross-margin is preferable for most people.
We are not opening positions that will ever put our entire account at risk of liquidation so you
don’t want to have your open positions liquidated on wicks beyond your isolated margin.
Just remember that if you open too big of a position with cross margin your entire
account is at risk of being liquidated.
Position Trading Basics
At the core of our trading system is the concept of position trading. Less than 0.1% of traders
can repeatedly step into a trade and immediately hit a home run.
Position trading will change your focus to base hits and always entering trades with a plan. We
are fortunate to have the guidance of EPIC which makes these base hits significantly easier.
VERY IMPORTANT: Every time you enter a trade you need a plan for the worst case
scenario and how you will manage your trade if that happens.
With our guidance we will constantly remind you of the risks so that you know what prices you
need to plan for if a trade goes against you.
The second part of your plan is knowing your bank roll to be able to handle that price if it hits. It
is necessary to always have a sizable amount of your account available to rescue a trade
at those extremes in price.
If done properly your biggest wins will come from these divergent moves when most other
investors are panicking.
The moment you start to be concerned that a further drop will cause irreparable harm to your
account you are in danger and should decrease your position size immediately or place a tight
stop loss.
Your trading should be completely stress-free if done right.
So with these principles in mind position trading looks a lot like simply DCA’ing into a position
except there is a mathematically advantageous way that we do this with our signaling and
charting.
You will receive all of this information in real time.
By knowing where the algorithmic edges of the playing field are you can know when it’s time to
take on extra risk to hit the home runs with stops just below to minimize any damage.
Maximal gains with minimal risk is the game we are playing. We will guide you through this
every step of the way.
When planning your maximum risk thresholds it is imperative that you have the majority of your
account available in the event that price is reached.
So when you enter a trade you need to plan for your position to have 70-80% of your
account available for adding to your position in the worst case scenario.
For example, you enter a SOL trade at $150 with a probable downside risk of $100. This is a
33% downside risk.
Your first position might be 10% of your account so that if that $100 price hits you are only down
3% of your account assuming there are no other adds.
Of course, price can also always go beyond these ranges so you need to plan for those
scenarios too.
Typically that will involve stopping out of that position to reenter at the next level of support. We
will guide you through these scenarios when they occur. As long as you have most of your
account still intact, you will be able to maneuver them without difficulty.
When you trade like this you will find yourself hoping for price to move against you as that is
where you can size up more safely.
If the price simply goes up you still win the trade. If price moves down you likely win bigger after
you add to your position.
Following EPIC’s Signals
Since EPIC is primarily trading on order flow signals from the biggest whales in the markets, we
can use its signals to often hit trades for quick wins when we see those players are buying or
selling.
In general, the bigger the buy or sell from EPIC, the more likely the price is about to
reverse in the opposite direction. Ideally, we want those large orders to line up with the main
structures in our charting to create high confidence trades that we can also size larger.
Your trade exits are just as important as your entries. When EPIC is closing a position you
need to be too.
The holy grail setups or “pockets” are the ones where EPIC is loading up its positions with
large buys or sells at the edges of the price ranges we identify in our charting. We can hit these
trades with significant size and simply use stops right below if the range breaks down.
The downside to these trades is very small and the upside is massive. We will get many of
these trades every year and will point them out in advance for you to take advantage of.
The more frequent trades that we will take, that compound significantly over time, are the
intraday (low time frame) scalps. We often get 1-4 of these trades every day where EPIC will
buy or sell in the 4-10 sized range.
You have to size these smaller than the holy grail setups as they don’t always work as expected.
More often than not you will get a 1-2% or greater move from these software executions.
Remember you still need to plan for the worst case scenario on these trades.
Start small with your positioning until you get a feel for how the software trades and how you
manage your positions in different scenarios. There is ALWAYS another trade so never feel like
an entry is your last chance.
POSITION TRADING SUMMARY
- Avoiding losses is more important than catching every market move.
- Never take a trade based on emotion. FOMO and fear will cost you money.
- Know your playing field before you enter a trade and plan for the extremes of range in
both directions – you will know these ranges from our charting and commentary. - Leave 70-80% of your bank roll available for the extreme of range if it hits.
- Follow the software signals. An execution of 4-10 is a good place to open or add to a
position. - Take profits when EPIC does. Its exits are just as important as its entries. (ABC
principle=always be closing) - The goal is constant base hits. When there is a home run to swing for we will tell you.
- Avoid ‘God mode’ at all costs. You will likely start to feel indestructible when trading with
EPIC. It only takes one bad trade to undo months of trading. Don’t get careless.
Inquiries and Questions: Telegram @cogdok
