$1M Trading Challenge: Week 5 - Indices

The main idea, how to trade during the week, was simple. I decided to use S&P500 and Nasdaq indices in combination with oversold market conditions and bullish signals to plan my trades in the crypto market. Indices bounced from the local bottom after a good downward movement. We got solid reversal patterns. It was logical to expect an upward movement in the stock market after that. The crypto market showed closely the same picture.

So, I decided to add a new long position for Polkadot and a new asset to my portfolio. It was Compound. This coin moved downward from the ATH for about 88% and it gave a very interesting trade opportunity for buying with low risk. So, I opened long positions with the goal to make some profit from a possible upward movement.

The crypto market moved upward following the Indices. It gave me about 2% of profit for the week. Of course, I could make 10-20% from that movement, but for this, I had to go all-in!

As you know, my priority is to manage trading risks and capital properly!

Trading all-in when the market conditions are not in your favor means making a great mistake! It is impossible for me! I can do it only when the price reached the real bottom and we have more than enough bullish signals supporting the reversal and a new bullish trend. And it is great to have an 80-90% correction from the ATH as an additional bullish signal.


During the week, there were no reasons to think about a new bullish trend from the real bottom. The market could update lows. If I bought coins using the whole capital and the market moved downward, I would be frozen in my long positions. It would be the greatest mistake from my side! It would increase the drawdown!

One of my main goals is to keep as much free fiat as possible in order to use it for buying at the real bottom. I follow my trading plan just in order to have such an opportunity at the right time.

I did my best to keep a good balance between trading risk and potential profit. I made 2% and it was an absolutely good result in that market condition. I like that I didn’t follow emotions trying to make more profit. I like that I followed the trading plan and execute trades accordingly.

At the same time, I keep my work under improvements of my whole trading approach in the borders of the $1M Trading Challenge.
I have been testing day trading approach which I would like to add to the current trading plan. There will be options to replace swing trading or just to add day trading as the 3rd style. Position trading stays the priority as it will allow getting the maximum benefits from a new bullish cycle. At the same time, I have to solve the issue of a delay from the schedule. Just to remind you that my monthly profit goal is 20%. In such market conditions, the bearish trend with a lot of unpredictable movements, this goal is not so reachable. There will be such market conditions in the future. I would like to have an effective solution for such periods in order to make the required profit.

Day trading looks like the best option for absolutely any volatility market and it doesn’t matter in which direction the market is going to move further. Right now, I use only swing trading as an alternative to position trading approach. But even with very close profit targets, this trading style is not as effective as I would like to see. So, there are options and ideas how to improve the whole trading and I have to use them.



Thanks a lot for your attention! I hope this post gave you some new ideas how to trade using signals from different markets and manage your capital properly. If so, please support my work by smashing the like button and your feedback in the comments!