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Hey, Adrian here. And have you seen what is happening in crypto markets this week? I want to take a little time and just share with you some thoughts about what’s happening in the crypto markets right now and what it means for you as a trader. This is really, really important because there’s some critical lessons for all traders and some critical lessons about the crypto markets and some next steps, which will really transform your trading that I hope will help you out.

So what I want to do is share some charts with you, talk about what’s going on and some of the lessons. So really, really fascinating market behavior. So let me just, here we go. Have a look at some charts here. First of all, we’ll start with Bitcoin and just talk about what’s going on with the market in general. We had a high in Bitcoin market of about 69,000 back in November, and we’ve basically been falling since then. There’s been a few little rallies, but really there’ve been nothing more than bear market rallies. And so from the high of $69,000, we’re now down 57%, down around $29,000. And quite possibly more declines to come. So we are in the midst of a crypto bear market, there is no two ways about it. And if you are sitting there holding hoping for new highs, then you are in a lot of pain right now. But it’s not just Bitcoin, it’s pretty much everything. If we look at Ethereum, same thing, hasn’t been hit quite so hard as Bitcoin, but certainly well down on its highest.

But the big story this week is Luna and what’s happening with Luna and UST. Let’s have a look at the Luna chart, which is frankly pretty unbelievable, although it’s not actually unbelievable, if you sit back and think about it. We’re dealing with digital tokens that have at best some kind of mildly interesting sort of exciting business case behind them. And maybe they’ve got a business, maybe they don’t. But frankly, there’s a lot of tokens out there that really have no real substance. Now I’m not making comment on or judgment on Luna, I’m actually not really that familiar with the project and everything behind it. But check this out. The high in April was a $119.55. And as of today, it’s sitting at a $1.10. Okay. So Luna has declined 99% in about a month. And this is market behavior that as a crypto trader, you’ve really got to expect and get used to and prepare for.

Now the fascinating thing, if you’re a stock trader and you’ve never traded crypto, you might be thinking, “Holy shit, I’m glad I’m not a crypto trader. There is no way I would ever want to trade or hold that. Because look, that risk is just way too high.” But let me tell you this, just because tokens are volatile, just because an individual token can drop 99%, does not mean it’s not the best trading opportunity of your lifetime. This volatility, this uncertainty, creates epic trading opportunities if you are positioned correctly. But there’s a couple of lessons in this, that I really want to draw out. Before I do, I want to show you this chart of UST. UST is a supposed stable coin, which means it’s linked to the US dollar. Now, if you look at it’s past… I’ve got just a short term chart here back of 2022, the last couple of months of 2022.

And if you look, it was basically really closely holding to a dollar until this week’s mayhem broke loose and people started trying to destabilize or de-peg this which they did successfully. And on Binance, UST dropped as low as 22 and a half cents when it’s supposed to be pegged to the US dollar. So clearly that peg was broken. And right now it’s 25% off that peg. So this model, this structure, or this ecosystem that Luna and UST are sitting on is fundamentally broken right now. So what are the lessons in this? We’ve got a massive bear market in Bitcoin, we’ve got huge declines in other large cat coins, Ethereum. We’ve had a coin, basically Luna just implode dropping 99%. And will it disappear? I don’t know, probably. But what as a trader or investor in crypto, can you learn from this? And how can you better position yourself going forward?

Couple of things. First of all, I want to point out that Bitcoin is not cash. UST stable points are not cash. Only cash is cash. Cash being actual US dollars or actual Australian dollars as in Fear currency. Anything else that’s in the crypto market is a trading position. Okay? So if you think you are safe by selling all your old coins and going to Bitcoin, you are dead wrong. Because Bitcoin is in the middle of a massive bear market right now and it’s down 57% from its highest. Right? So what does that mean? That means if you are trading crypto or investing in crypto, you better understand that no matter what crypto you are holding, it is actually a position. If you are closing your old coins and going to Bitcoin, you are not sitting on the sidelines. You are sitting in a massive Bitcoin position with a high degree of concentration. Okay?

So the biggest lesson is don’t just hold Bitcoin, hoping that all of this will blow over and expecting the value of your account to remain stable. Okay? If you don’t want to be in the market, if you want to stand aside, you’ve got to go to Fear or at the very least US dollar Tether. Okay. But not some dodgy, little or relatively small stable coin UST. Okay. So Bitcoin is not cash. And if you want to be on the sidelines, go to actual cash Fear and stand aside. That’s the first lesson.

Second lesson in this is that frankly, buy and hold in the crypto markets is really, really dangerous. You’re going to have to sit through massive swings in your account value. Even if you’re only holding the large cat coins like Bitcoin, like Ethereum, here like I said in Bitcoin, we’ve got a 57% decline right now. And that’s nowhere near the biggest decline in history. Okay. So buy and hold is going to be a very volatile ride. If you pick the right tokens and you have a 10 year time horizon or a 15 year time horizon, maybe you’ll do really well. But frankly, we don’t know what’s going to succeed. I mean, I know dozens of crypto investors who were crawling about how amazing Luna was going to be. And yet look at the chart of Luna. If you were a buy and hold investor in this project, then you’ve been absolutely decimated. You’ve lost everything. And that’s after having massive, massive gain.

You’d be thinking, okay, so you got into Luna back here at the end of 2020 at 60 cents or something. And you buy and held all the way up to a hundred, you’re thinking you’re an absolute genius, you’re probably a millionaire. But then in the blink of an eye, two months later, you’re back to zero. Okay. So buy and hold in the crypto market unless you’re doing anything but the absolute biggest coins and probably literally Bitcoin and Ethereum, there’s a real risk that at some point you could be suffering a loss like we just saw in Luna this last week and a half. So buy and hold super dangerous. Now, as a result of that conclusion, what will that realization, what are the following lessons?

You see terms in crypto like diamond hands, like hodling and these are some of the stupidest philosophies that I’ve ever seen that comes to trade and investing. Diamond hands basically means, you are strong enough to hold no matter what happens I’m holding all the way through the ups and the downs, right? Now, if you bloody diamond handed through this Luna debacle, you end up with nothing. And going to zero does not help anyone, doesn’t prove anything apart from you didn’t know how to exit your trade. Okay? That’s all it proves. And hodling is just buy and hold in the crypto space, right? If you have a portfolio of tokens that you are just hodling for the next five years expecting to get rich, you may be in a sand pool of disappointment. Because not all of the tokens that you think are going to change the world will change the world. And many of them will go to zero, just like we saw here. Okay. This is really scary for a buy and hold investor.

And I’m going to suggest that buy and hold in environment where this can happen, is really not the best way to invest, not the best way to trade. So what is the solution? Actually before we go to solution, there’s one more thing. There’s one more philosophy, which I hear quoted about in crypto all the time. And it’s that it’s only a loss if you sell. Then again, the complete bullshit. This is just not true because if you are holding a token and it is declining 99%, like it or not the value of your account has declined. The value of your wealth has declined. Your ability to realize your dreams has declined. If you had had a position in Luna and you’d held all the way through this massive up trend, and you had a trailing stock loss that took you out somewhere up here at around the sort of 75 cent mark, you’d still be sitting on a massive pile of cash instead of crying, crying about how broke you are.

Now, I don’t want to be harsh. And I know if someone has had a lot of money in trades like this, they’re really hurting right now. But I want you to take this lesson away. Okay? Buy and hold in the crypto markets is dangerous. You’ve got to have a rule that will get you out. So what’s the solution? How do you deal with this? And how do you deal with even Bitcoin the biggest of the big going through 57% decline and more? Because in the past it has had even bigger declines than this. Well, the answer is not to be an investor, but to be an active trader. An active trader is someone who has rules that get you in and get you out of the market when certain things happen. Now, there’s lots of different styles of trading, right? There’s a lot of people out there who look at different indicators and read the news and look at the chart patterns and form some subjective judgment about what’s going to happen in the market and then place a trade.

Okay. I’m going to call that discretionary trading and it’s largely technical. So technical discretionary trading that is like using indicators and so informing a view about what you should do by selling. Okay. Technical, systematic training is basically a road to poverty. Okay. It’s a road to poverty because it’s subjective. And when anything is subjective, your emotions will creep in and when your emotions creep in, then what happens is your trading decisions are inconsistent. You make mistakes, you lose money and you may have a series of wins, but they will definitely be offset by a whole series of losses. Subjective trading is not the way to wealth. Okay. The way to wealth is systematic trading. Systematic trading is absolute rules that tell you exactly when to buy and exactly when to sell. And the beauty of absolute rules, is that when you know exactly when the conditions you should buy exactly the conditions you will sell, you can back test those rules.

You can test those rules to see how well did they work in the past, of what market conditions did they work in the past and would you have made money if you followed those rules. And you can test different ideas. What if I had a stop loss? What if I don’t want a stop loss? What if I had an hour on stop loss? What if I put in a profit target? As soon as you’ve got objective rules, puts you in the seat of power. Power to understand and analyze what actually works for yourself, so that you are an empowered trader, you are in the driver seat, you are in control. And if you want to build wealth trading, that’s the only position that will work. You’ve got to be in a position of power and control of your money. And to do that, you’ve got to have a system set of rules that you can test to answer your questions and validate whether the rules actually work. Okay?

So in crypto, you don’t buy and hold, this is the primary lesson right now because we can see these massive bear markets. We can see debacles like what we had in Luna this week. Buy and hold is just ultra risky and going to be a hugely volatile ride in your portfolio. Okay? So we don’t buy and hold. We don’t want to trade using discretionary techniques, because the volatility of the crypto market will guarantee get your emotions going crazy. Okay. So you need absolute objective rules and systematic training is the only way to do that. If you want to take a step forward in your trading in crypto, systematic is the way to do it. And how can you learn that and how can you implement that? Well, the crypto success system is my program that teaches you all about how to apply systematic trading in the crypto markets. And not only teaching you how we also teach the absolute exact rules that we are training to generate profits in the market.

Now I want to share with you the results of one of our systems, because you might say, “Okay, well, I see Bitcoin is going down, we’re in the bear market. So maybe I should just stand aside. Maybe I should just go to cash and wait away for the next crypto bull market then I’ll buy it again. I’ll get my diamond hands back on maybe.” But you don’t need to do that, because when you’re trading systematically, you can profit from upmarket and you can profit from down markets. So what I’ve done is in Amibroker here, I’ve got a backtest of one of our systems in the crypto success system called fallen angel. Fallen angel is a short system that makes money when the markets are declining. And what you can see on the chart here in front of you is the equity curve of just this one system. This is a short side system and I’ve just tested it from 2020 to now, just to show you what’s happened.

Because the market’s been in a bit of turmoil, we saw that Bitcoin has been declining. Let’s just go back to Amibroker for a sec here. We’ve been declining in Bitcoin since November or so last year. Now, if we look at the fallen angel system, you’ll see from about November, the system turned on. That it could it go flat here, which means that system was in cash. Bitcoin started falling. The system turned on and started making money. And similarly, when the previous decline happened in Bitcoin, back here in April, May, June, July, the system was on and it was making money. So just because the market’s falling doesn’t mean you have to stand aside, doesn’t mean you have to lose.

You can actually profit, if you’ve got a system that will help you make money, right? So fallen angel is a great addition to the portfolio in crypto, because you can profit from all of the declining tokens, when the asset is falling in the market. Have a look at this. We’ve got just in here, let me zoom in so you can see this a little better. These are the results in this backtest. You can see fallen angels up 23% in May, up 18% in April and was flat in March, basically flat in February and in January it made seventeen and a half percent. So this system alone is up 68% this year when the asset is falling out of the crypto market, which is astounding, right? And this is just one system out of eight actually, that we’ve got in the crypto success system. So fallen angel allows you to profit from declines in the market.

And we have a bunch of other systems that allow you to profit from the rise in the market, from the bull markets in crypto. So if you can profit from the bull markets in crypto, have those systems gracefully stand aside, go to cash and then profit from the bear markets in crypto as well with your other systems, and be well positioned for the next bull run, you’re going to make an absolute fortune trading systematically in the crypto markets. So just because the bottom is falling out of the market, doesn’t mean you can’t succeed as a trader. Just because coins are going to zero that were once the deluxe of the market does not mean that you can’t profit from trading crypto. You’ve just got to do it systematically, so that you know exactly when to get in and you know exactly when to get out. You also profit from the long side and short side.

If you’re doing that, you’re going to stand a huge chance of success and a huge chance of making really great wealth. Because systems we’ve got in crypto success systems have really high return, [inaudible 00:17:44] triple digit annual returns per year, and we’ve got systems that will make money in down market. So if you are looking at the crypto market right now scratching your head wondering what to do, wondering what trouble your diamond hand got you into, wondering what trouble hodling got you into, wondering whether or not you should keep holding the Bitcoin or whether you should keep holding your Luna, it’s time to make the shift. Shift to systematic trading. Eliminate those questions, eliminate that stress once and for all. And you’ll find that your crypto trading transforms dramatically.

And if you’re a stock trader looking at crypto market saying, “Thank God, I’m not in that debacle right now,” I want you to think about it differently. Because the crypto markets present a massive diversification opportunity for you as a stock trader. So if you could diversify your trading by trading stocks and crypto, trading long and short in crypto markets, you’ll dramatically enhance your overall portfolio returns. Because when the stock markets are strong and crypto is strong, you make massive returns on to the long side. When the stock markets are weak, you can profit from the downside absolutely. But if you’re in cash standing aside and you got nothing going on, you can profit long short in crypto. The crypto currency markets are not 100% correlated with stocks.

And so they present a really great diversification opportunity. And even with a small chunk of your cash, diversified stocks into crypto, you can get a dramatic improvement in the returns and smoothness of your returns, in your overall portfolio from that diversification. So for crypto traders, time to go systematic. Click the link below, join the crypto success system. For stock traders it’s time to stop sitting on the sidelines. I know the market looks scary right now, but the fact that crypto markets look scary, is exactly why you need to be trading. They’re very volatile, but we have systems that can navigate that volatility for you. We have systems that will profit in the up markets, in the down markets. And when you’re on long side of crypto, the systems will get you out before the collapse kind of peaks. And you’re not going to obviously get out of top, you don’t get out the absolute top. But it would it will get you out before you get into trouble. And will get in on the short side and you make money on your way down.

So in the first stock traders, it’s time to stop sitting in the sidelines. It’s time to get into the crypto market. Now is the perfect time because this is the perfect time to diversify and improve your portfolios or your ways right now. And when the next crypto bull market comes, our systems are going to get you in, they’ll get you in early, you’re going to get massive returns, because the crypto bull market rallies are extremely normally strong and fast. And if you’re a stock trader say on the sidelines of that, you are just leaving tons of money on the table.

So the crypto success system is the answer whether you’re a crypto trader struggling, whether you’re a stock trader sitting on the sidelines, click the link below, join the crypto success system, I guarantee you won’t regret it. Will be one of the best financial decisions you ever make and it will put you in a position of how I control over your crypto trading. That’s all I’ve got for you in this video. If you got questions, please post them in the comment below, otherwise I’ll see you in the next video. Click the link, join crypto success system. I’ll see you inside. Bye for now.

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