RektProof is a legendary trader whom I greatly admire, having previously achieved a shocking performance of nearly 72000% in just 4 months. A part of my trading system is also inspired by him. He has previously shared some concepts from his strategy, and today I would like to share some of that content, along with my personal optimizations. (Background: Taking Bitcoin's double top structure in 2021 as an example: Discussing what “future data leakage” is ) (Background Supplement: The reason I never take breakout trades: Market makers' traps for hunting liquidity) Declaration: The images used in this article are sourced from materials publicly shared by RektProof, and I have only made modifications. Today’s shared content is his “3-tap” entry model, which includes the core concepts: 1⃣ Defining ranges to monitor liquidity accumulation areas 2⃣ Centered around Stop Hunt (liquidity hunting), finding areas where hunting occurs 3⃣ After confirming signal appears, waiting for a second test to enter. In simple terms, this model is divided into three steps: “After the range forms a MSB, a supply and demand area is created, and a trading window appears.” Below, I will provide detailed explanations of the three steps mentioned above, along with my personal understanding. First is the first step: Range Formation Regardless of whether it's an upward or downward trend, once consecutive highs and lows are formed, they can be defined as a “range,” or the prototype of a range. Marking these ranges allows us to conveniently monitor liquidity accumulation areas, which are the swing high and swing low of the range. After the range appears, if one side of the swing high or swing low is broken, we can then observe if there is any price action “returning within the range.” At this point, to increase the winning rate of trades, the confirmation signal used by RektProof is “MSB.” MSB, short for Market Structure Break, specifically refers to the trend structure transition in smaller time frames. The approach I take: I don’t pay much attention to MSB, but instead monitor whether there is strong taker involvement when prices return to the range. If the range is broken upwards or downwards, and the MSB confirmation signal also appears simultaneously, the next step is to wait for the price to return to the area where the Stop Hunt occurred for a second test, and this second test is the entry time of the 3-tap model. After entering: Set the stop loss at the tip of the long wick candle that occurred during the Stop Hunt, and set the take profit at the swing point of the other side of the range. My approach: Still integrating takers, as described in the quote below, I have two possible entry times: one is to enter directly when I monitor a taker during the Stop Hunt; the other is to wait for a second test and again monitor whether there is a taker before deciding whether to enter. Conclusion Dreaming back to n years ago, I recall when I was learning about technical analysis, I can almost say that I absorbed most of the theories from various schools, continuously refining and optimizing before eventually becoming the swing trading system I have now, focused on liquidity, takers, and makers. RektProof's strength is undeniable (this is not an advertisement, he doesn’t need my advertisement), interested readers can refer to his pinned post on Twitter, where the results are terrifying. Lastly, although I cannot compare myself to him, I still did not copy everything during my learning process; instead, I only absorbed concepts I agreed with and integrated them into my own system. I believe that anyone wanting to achieve stable profits in the financial market needs to have their own system and must always be sensitive to optimization windows; otherwise, it is easy to fall into the plight of copying others, leading to a confusing outcome that can only result in losses. That’s all for today’s sharing, I hope it helps you all, and thank you for reading this far. Original link Related reports Interpreting the 6 current situations of the Web3 AI track: Compared to AI Agents, institutions focus more on infrastructure AI Agents integrating with Web3, the era of Bots helping you with on-chain finance is coming? Complete introduction to Mind Network: Using FHE technology to solve AI Agent security issues <Exploring the “real trading 700 times in 4 months” legendary trader's technical analysis strategy> This article was first published on BlockTempo, the most influential blockchain news media.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Explore the technical analysis strategies of the "real trading 700 times in 4 months" master trader.
RektProof is a legendary trader whom I greatly admire, having previously achieved a shocking performance of nearly 72000% in just 4 months. A part of my trading system is also inspired by him. He has previously shared some concepts from his strategy, and today I would like to share some of that content, along with my personal optimizations. (Background: Taking Bitcoin's double top structure in 2021 as an example: Discussing what “future data leakage” is ) (Background Supplement: The reason I never take breakout trades: Market makers' traps for hunting liquidity) Declaration: The images used in this article are sourced from materials publicly shared by RektProof, and I have only made modifications. Today’s shared content is his “3-tap” entry model, which includes the core concepts: 1⃣ Defining ranges to monitor liquidity accumulation areas 2⃣ Centered around Stop Hunt (liquidity hunting), finding areas where hunting occurs 3⃣ After confirming signal appears, waiting for a second test to enter. In simple terms, this model is divided into three steps: “After the range forms a MSB, a supply and demand area is created, and a trading window appears.” Below, I will provide detailed explanations of the three steps mentioned above, along with my personal understanding. First is the first step: Range Formation Regardless of whether it's an upward or downward trend, once consecutive highs and lows are formed, they can be defined as a “range,” or the prototype of a range. Marking these ranges allows us to conveniently monitor liquidity accumulation areas, which are the swing high and swing low of the range. After the range appears, if one side of the swing high or swing low is broken, we can then observe if there is any price action “returning within the range.” At this point, to increase the winning rate of trades, the confirmation signal used by RektProof is “MSB.” MSB, short for Market Structure Break, specifically refers to the trend structure transition in smaller time frames. The approach I take: I don’t pay much attention to MSB, but instead monitor whether there is strong taker involvement when prices return to the range. If the range is broken upwards or downwards, and the MSB confirmation signal also appears simultaneously, the next step is to wait for the price to return to the area where the Stop Hunt occurred for a second test, and this second test is the entry time of the 3-tap model. After entering: Set the stop loss at the tip of the long wick candle that occurred during the Stop Hunt, and set the take profit at the swing point of the other side of the range. My approach: Still integrating takers, as described in the quote below, I have two possible entry times: one is to enter directly when I monitor a taker during the Stop Hunt; the other is to wait for a second test and again monitor whether there is a taker before deciding whether to enter. Conclusion Dreaming back to n years ago, I recall when I was learning about technical analysis, I can almost say that I absorbed most of the theories from various schools, continuously refining and optimizing before eventually becoming the swing trading system I have now, focused on liquidity, takers, and makers. RektProof's strength is undeniable (this is not an advertisement, he doesn’t need my advertisement), interested readers can refer to his pinned post on Twitter, where the results are terrifying. Lastly, although I cannot compare myself to him, I still did not copy everything during my learning process; instead, I only absorbed concepts I agreed with and integrated them into my own system. I believe that anyone wanting to achieve stable profits in the financial market needs to have their own system and must always be sensitive to optimization windows; otherwise, it is easy to fall into the plight of copying others, leading to a confusing outcome that can only result in losses. That’s all for today’s sharing, I hope it helps you all, and thank you for reading this far. Original link Related reports Interpreting the 6 current situations of the Web3 AI track: Compared to AI Agents, institutions focus more on infrastructure AI Agents integrating with Web3, the era of Bots helping you with on-chain finance is coming? Complete introduction to Mind Network: Using FHE technology to solve AI Agent security issues <Exploring the “real trading 700 times in 4 months” legendary trader's technical analysis strategy> This article was first published on BlockTempo, the most influential blockchain news media.