Essays

Today I wanted to do a bit of a market recap, take a look at where things are and what we're actually doing with the Minotaur Trading systems algorithm because we've got some really exciting things that we're going to be launching, even though the markets and the sentiment are looking pretty bad right now. So let's just jump in and take a look. Firstly, I'd like to show the Fear and Greed index. So here we go. Right now we're sitting at around 11, which is extreme fear for Bitcoin and broadly in the markets around 43. So again, you know, people aren't too excited about what's going on in the world. There's a lot of uncertainty and, you know, that's fair enough. We've had some big drawdowns, especially in bitcoin and let's just have a look where exactly we are sitting. So obviously we had expectations that there was going to be a far larger rally before the sell off. At no point did we not think there would be a sell off. You know, I guess the scenarios that were expected were either were up and then down. You know, we always say the power law support is where the price is going to find itself. It's almost like a magnet. However, it looks like we're going down and then potentially up. If it takes that long, maybe, maybe it'll be a bit sooner and we'll correct a lot earlier. Who knows at this stage? Yeah, there is a lot of uncertainty. What we're looking at here is the Power Law indicators by Giovanni Santostasi. Now I just want to clear up some misconceptions. So this white line is, has nothing to do with the Power Law. This is simply based on the peaks of the previous cycle. So there's only three data points to go off and of course it hasn't played out like it has in the past, but this doesn't affect the power law at all. The power law is actually closer to here, this center line. You can see price really did oscillate around that for quite a long time now. It has deviated but it's still within that expected range. Now the bottom line is what we call the Power law support. It's usually around a 60% deviation from the mean and we're still trading within these power law bands. So know according to what we're seeing here, we have timing issues with the cycles, but we don't have any power issues, which is great. One of the things that we teach when trading Bitcoin is to always defend past the power law support. So if someone had been trading with us, that probably would be in a bit of a drawdown, which is great because you're stacking up lots of positions. The only issue is that it takes time and some people have been in these trades for six to eight weeks. These become just really large swing trades and that's part of the game. As you can see, it's got a healthy take profit at around 82k. Again, we might not hit that in the next few weeks, but it's definitely going to come and when it does, this will be a healthy profit. So the worst time to be trading in any kind of scenario is when we have these real aggressive black swan events because they do require us to hold positions for much longer than we're used to. With Bitcoin. It's really been upwards trend for around two to three years. Being able to survive these kind of drops is important and it's also part of the parcel. But if we can move into a little bit more interesting scenarios is that, let's just imagine you started today. Well, if you started today, you can see that it looks quite different because you're not stuck in a drawdown and you're able to trade the range really, really well. So I've set this one for the beginning of February and I'm going to be tracking it live on these, on these live streams and we're going to see what this looks like over a really long time. And as you can see, it's going extremely well. Lots and lots of trades have already happened. So again, if most of the pain is behind us, what that means is that there's plenty of room for upside, that there's plenty of room for us to now trade the range and slowly go up, we can also keep going down. But again, the algorithm is engineered to survive huge amounts of drawdowns. And we're also doing advanced risk management strategies, teaching our clients how to use hedging, how to use options, strategically trim positions. There's lots that can do to protect a position and there's no reason to get account in trouble if you know what you're doing. And as part of the education which comes with running a tool like this, again, the tool that we share with our clients is the algorithm itself. And we also have some other really cool news and that's basically a partnership that we've done with BTCC. And one of the reasons why we're excited about BTC, despite the fact that you get a 10% bonus when you sign up to use them with our system is that we're also one of the few people that are going to allow to have an API connection through to btcc and that's going to allow us to trade BTCC with the algorithm, which is really cool. But one of the other really cool things about BTCC is it has tokenized assets. Now what does that mean? Well, let me show you what that means. Basically means that using the Minotaur algorithm, we're going to be able to trade stocks, gonna be able to trade Apple, Amazon, Intel, Meta, Microsoft, Netflix, Nvidia, Tesla. This is really going to open up a lot of opportunities for the algorithm. Now again, we're always going to specialize trading Bitcoin algorithmically, especially because of the power law and the work that we do with Giovanni. However, opening up the algorithm to a variety of assets is fantastic. For diversification as well, we'll also be able to trade metals like gold, like palladium, like platinum, like silver, commodities like UK Oil, US Oil, and even some indices like the Dow Jones, the S&P 500, the Tech 100. These are gonna be really, really, really interesting to trade with. And we can't wait to see the creativity that our clients come up with when using the algorithm on some of these. But just to give you a good example, you know, I've been running this on Gold. You know, it looks absolutely great. Of course these assets don't have power laws that are followed power laws, but they have been traded for, in Gold's case, very, very, very, very long time. And they do have properties and they do have historical volatility and patterns that we can use to create settings for the algorithm. And we've also got some really creative ways that you can apply diversification to the bot strategies that you use with our algorithm. So this is basically our algorithm. They're trading Gold. Here's the algorithm trading US oil, which is looking really good as well. And we've even got it trading on Tesla. Now this is brand new. The history just starts in the beginning of January with the BTCC contract. So you can just get be one of the first to trade Tesla with the Minotaur algorithm. So, you know, to come back to where we are, you know, the cycle didn't play out like most people thought it would. However, the algorithm is still performing incredibly well. If you're stuck in a position that's just part of the game. If you're looking to get started, starting now is a fantastic time. Not only you're already at the, hopefully the bottom of the market and if not great because we can defensively scale into it. But there will be tremendous upside and benefits from getting started now. So also BTCC and the ability to trade a variety of assets and commodities and indices is going to really open up diversification and opportunity for all our future clients and existing clients as well. So we're really excited moving forward about everything that we're putting together. If you want to book a call with my team, please go ahead and use the link somewhere around here or use that QR code in the top of the screen there. And we look forward to speaking with you. And I'm going to start doing these streams as much as possible to give you guys as much information as I can.