Have you noticed this in yourself? You open the chart, and your eyes instantly 'draw' a perfect 'Head and Shoulders' or any other pattern. It seems like it's a 100% signal! But in reality, only half of such trades turn profitable. Why does this happen?
• Confirmation bias. Our brain loves being right. We subconsciously look for patterns on the chart that confirm our expectations, and completely miss signals that go against us. (And that's normal). Shift your focus and look at the chart again — you'll see that the patterns that didn't work are just as numerous as those that did. Think of it this way: price moves 50/50 up or down, in theory.)
• The paradox of indicators: If you overlay 10 indicators, at least one of them will inevitably 'guess' the move. But this isn’t a forecast — it’s just randomness.
My choice — neutral bots (Grid Trading).
I stopped guessing market direction and switched to algorithms. But it’s important to understand: neutral trading isn’t ‘set and forget.'
⚠️ Important to remember:
• Don’t enter blindly: Even in a neutral grid, you need to consider the overall trend. If the market is moving sharply in one direction by tens of percent, no neutral strategy will save you without proper configuration.
• TP/SL — this is sacred: Crypto can generate moves that even the stock market couldn’t dream of. Trading with 10x leverage without Take Profit and Stop Loss is a huge risk.
• Understanding the range: You must clearly recognize the boundaries within which you expect volatility.
While others debate whether the market will draw the 'right shoulder,' my bot simply captures profit from every fluctuation within the range.
In the next posts, we’ll go deeper into how I choose entry points and how funding impacts our profits (spoiler: it’s either your hidden ally or enemy).
Do you set stops for your bots or let them 'ride out' any storm? 👇
#TradingPsychology #GridTrading #CryptoKazakhstan #RiskManagement