#39 EmperorBTC

September 5, 2022

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EmperorBTC is a full-time crypto trader and investor. His focus is on price action and orderflow.

What attracted you to trading?

I was lazy and realised that despite all the jobs I would do, I'd never be able to afford the life I wanted for my family. I didn't have enough capital to start my own business.

Trading seemed like a good option, and I started with trading equity spot, then moved to futures when I had some capital, then to Index Options and finally to Crypto.

When did you start trading?

I first started at about 18 years old and lost everything. I went full-time about seven years ago.

My mum was happy that I was trading because she thought I was good at it. However, she didn't consider it a career choice as my family viewed day trading as gambling. 

Initially, I got my best friend involved, and we traded together. We made profits for three months before losing it all. My best friend moved on with his career. 

I was kind of safe as I was in spot; however, as soon as I started futures, that's when highs and lows began. It was a booming market, and I made money. However, I was betting more than 90% of my portfolio on every trade. Before long, I lost everything. 

I was betting more than 90% of my portfolio on every trade. Before long, I lost everything. 

How long did it take to become profitable?

It took me about three years after going full-time. I didn't continuously take losses for three years, but I wasn't managing risk and was going all in. I would have 5-6 wins, and then a single loss would wipe out all the profits because I wasn’t managing my risk well. It took me a few years to break this cycle.

What’s your hit rate now? What caused you to break that cycle?

My hit rate is around 60%, and people need to realise that more than the hit rate, a good R:R and cutting losses are critical.  It's okay to be wrong but cut losses as soon as you're in doubt. 

My system has evolved a lot. I don't use anything that's just a statistic. I try to find entries where the limit orders are absorbing market sell orders. That's where my money-making model lies. If I could go back in time, I'd tell myself to trade a lot more but bet a lot less.  More bets with smaller risks is better than fewer, bigger bets.

"More bets with smaller risks is better than fewer, bigger bets." - EmperorBTC

What does an average day look like for you?

I wake up and don't touch my phone for an hour. The first hour is just for me. Then I walk, exercise and meditate and get the morning sunlight. I follow Dr Andrew Huberman’s routine and recommend it to everyone. Then I look at all the pairs on my list and see which are eligible to trade per my system. I try closing all short-term trades at the end of the day. If I leave a trade open, I have my TPs and SL in place.

What’s the worst thing about trading?

The success rate on any given trade is around 50%. This success rate is too high when compared to other professions. What's the success rate of flying a plane without any training? It's 0%. This high success rate, combined with a bull market, gives new traders a false sense of mastery over the market. People start risking more and almost always lose everything.

The success rate on any given trade is around 50%. This success rate is too high when compared to other professions.

Tell us about your most memorable trade.

I was long on Bitcoin on the 29th of November 2017. It went above 10K, and I was in significant profit. Then suddenly, the price dropped by almost 30% and liquidated me from a huge position. I couldn't sleep for days. My trade was correct, but I wasn't expecting the volatility. The worst part? As soon as my liquidation point hit, the price rallied up again. I learnt a lot from that.

What’s the best trading advice you’ve received?

Smaller risks. Smaller bets. Not every day is a trading day. I have a preset and predetermined model for entry based on price action.  If price reaches my defined level with enough market sells being absorbed and the proper price structure, then I enter the trade. 

"Not every day is a trading day." - EmperorBTC

What’s the most important quality in a trader?

Perseverance. There's no value in trading if you don't enjoy it. I knew I wanted to be a trader, and I enjoyed the process even when taking losses. 

But I also kept going, kept journaling, and realised that my system had an edge but needed to prevent losing it all when I lost. That's where when my determination to keep going paid off. 

I knew I wanted to be a trader, and I enjoyed the process even when taking losses. 

Why do you think you're a successful trader?

I don't consider myself successful, but something that's helped me is being satisfied with smaller position sizes and profits. Smaller trades have dramatically reduced my stress levels.

What's the mistake you find hardest to avoid?

Copying other people's trade and looking for confirmation from other traders. 

Which traders do you look up to?

I look up to Lance Breitstein because he emphasises how important it is to learn and listen to a mentor. It has greatly improved my trading.

I look up to my friend Johnnie who strives every day to become the best Bitcoin trader in the world. 

Finally, Jim Simons, who continuously reiterates that it's okay to take losses as long as you keep them small.

If you could give a novice trader one piece of advice, what would it be?

Don't quit your job. Have a second source of income. Three years is your learning curve. Bet smaller. Crypto has a new narrative every day, there's no need to FOMO.

Crypto has a new narrative every day, there's no need to FOMO.

Fill in the blanks

  • Most traders would be better off trading small.
  • What separates the pros from the rest is being okay with playing the long-term game. 
  • A good trader should never copy others.
  • The biggest misconception about trading is you can do it at leisure.