How-To Make Optimal Trading Decisions [My Complete Blueprint]

Today marks a pivotal moment as I unveil the foundation of my crypto trading strategy: a comprehensive, fact-based process for making optimal trading decisions. 

This isn’t just a set of guidelines; it’s a multi-dimensional framework designed to navigate the complexities of the cryptocurrency market. 

By incorporating diverse facets of analysis and stringent checkpoints, my system ensures that every trade is grounded in informed decision-making.

Ready to dive in? Let’s go.

Making Optimal Trading Decisions — My Quality Gate Approach

At the heart of my trading methodology lies the so-called “Quality Gates Approach,” a systematic process designed to vet each trading signal rigorously. 

This approach channels each potential trade through a set of distinct quality gates. At each gate, specific criteria are assessed to determine whether it is prudent to advance with the signal. 

Only those signals that successfully navigate through all gates are deemed worthy of consideration. 

This ensures that the signals I act upon have undergone thorough scrutiny, guaranteeing that I proceed only with the most promising opportunities a.k.a optimal trading decisions.

Step 1 – The Genesis of My Ideas

My journey to finding optimal trading decisions begins with using the Crypto OS mobile app or web app, leveraging the comprehensive trading signals provided within the app. 

I have a curated list of tokens that I regularly monitor, along with specific timeframes that align with my trading strategy. 

To streamline this process, I set up alerts in the mobile app, ensuring I’m promptly informed whenever there’s a trading signal for any of my preferred tokens. 

This enables me to stay ahead and responsive to market opportunities. When I seek a more hands-on approach, I manually delve into the signals, carefully selecting those that match my criteria for preferred trading signals.

Step 2 – The EMA Quick Check – Aligning with the Momentum

After identifying potential signals, I next conduct a strategic assessment against the Exponential Moving Average (EMA). In this context, I use the long-term EMA200.

This isn’t merely a technicality; it’s a litmus test for market sentiment.

A bullish signal for a token currently under the EMA200 is a red flag, prompting immediate disqualification. Conversely, a bearish signal for a token above this threshold is equally concerning. 

This step ensures that I recognize potential and align with the broader market momentum, a critical factor for trading success.

Step 3 – Backtest Brilliance

Diving deeper, I again leverage the Crypto OS app for its backtesting capabilities. 

I demand a success rate above 75% and a history of more than ten signals. This criterion is my safeguard against flukes, ensuring that the strategies I consider have a solid foundation of success. 

It’s about confirming the reliability and repeatability of results, which is paramount in a market known for its unpredictability.

Step 4 – Chart Pattern Validation

At this stage, I closely examine chart patterns. This is where I scrutinize the market’s movements, looking for patterns that support or go against the trade I’m considering. 

On my way to the optimal trading decision, I use this step to filter out opportunities. Here’s how it works:

If I find patterns that align with my trade setup or no patterns that suggest a reversal, I take it as a confirmation to proceed. However, if I see a pattern currently forming that goes against my setup, I stop the evaluation and don’t trade the signal.

For example, let’s say I have a bullish signal, and the previous checks were okay. However, the chart analysis shows that a head-and-shoulders pattern is currently forming. Accordingly, this would be a red flag, and I wouldn’t consider the signal any further.

This step is crucial in my system as an extra validation layer to ensure the trade’s viability.

Step 5 – AI Check

Next, I evaluate the AI-driven forecasts, which offer a forward-looking analysis rather than mere speculation. 

These predictions are grounded in a comprehensive analysis of data points. In this step, I briefly utilize the AI features of Crypto OS to ensure the trade aligns with future market trends. 

Like the chart pattern step, I want the AI to back my signal. Any misalignment between the AI’s predictions and my trade direction serves as a critical checkpoint, guiding me away from potential missteps and reinforcing the integrity of my trading decisions.

Step 6 – Manual Check

The final step in my system is conducting a thorough manual check.

This includes analyzing the charts on TradingView in detail and searching for the latest news that could affect the token. 

At this point, it’s about combining analytical review with a keen sense of market dynamics to ensure nothing external could compromise the trade. 

This last check confirms that everything aligns with my strategy, allowing me to set up the trade, including establishing apparent stop loss and profit targets.

How The Quality Gates Approach Helps To Make Optimal Trading Decisions

Here are a couple of aspects why I believe that this approach is super solid and represents an essential tool for finding optimal trading decisions:

Holistic Integration of Diverse Aspects

What sets this approach apart is its holistic consideration of various market dynamics. 

By integrating chart patterns, AI-driven forecasts, and rigorous backtest results, the strategy encapsulates a 360-degree view of trading opportunities. 

This integration ensures that decisions are not based on a single aspect but result from a comprehensive analysis, marrying the past, present, and predictive insights for a well-rounded decision-making process.

Unwavering Discipline in Execution

Perhaps the most critical element of this strategy is the discipline it enforces. No matter how promising a trading signal might initially appear, it is subjected to the same stringent set of quality gates. 

This unwavering adherence to the predefined criteria ensures consistency and risk mitigation. If a signal does not pass a gate, it is unequivocally out. 

This discipline eliminates emotional or impulsive trading decisions, grounding the strategy in objectivity and systematic rigor.

What’s Next?

Whenever you are ready, there are three ways I can help you:

#1 Ready to trade like a pro? Check out our Strategy OS program, giving you access to some of the most successful and robust trading strategies >>> Discover More Here.

#2 Need to get a better structure for your trade? Discover our Trading OS, which contains trading journals, asset managers, and risk assessment templates. >>> It’s available for free here

#3 Never want to miss a trading signal and ready to automate your trading? Download our app and get trading signals for more than 200 crypto tokens. >>> Available on iOS and Android and web-based.