Crypto-ML has released signals designed for short selling Bitcoin. This gives Crypto-ML users the ability to take advantage of the down market and profit during drops.
Why Short Selling Bitcoin is Important
As we discussed in our introduction to the Crypto-ML Market Index, it’s very important for traders to “swim with the current.” By looking for long trades in bear markets, many factors are stacked against you. And if you are looking to maximize profits on your trades, you want as many factors in your favor as possible. This minimizes the impact of random and unexpected circumstances.
In 2018, crypto has been in a major bear market. Additionally, in November, we just broke a new low for the year. Due to the triangle formation of price, Crypto-ML has anticipated a pending break from consolidation. This occurred as a downward surge yesterday which will likely reinforce the bear market for the time being.
The large-scale view of the bearish breakout:
And a zoomed in view:
As of this writing, the Crypto-ML Market Index is sitting at a -24.5, which indicates a strong and strengthening bear market (see screenshot below).
How to Short Sell Bitcoin
If you are not familiar with how to short Bitcoin, you can see our post How to Short Bitcoin for Cryptocurrency Traders, which provides information a variety of ways you can short along with exchanges that support shorting.
Fundamentally, that post covers four accessible approaches. And it is likely your exchange supports shorting “out of the box” without any additional work or knowledge needed.
Crypto-ML Short Selling Signal Overview
The Crypto-ML Short signal is separate from the Standard and Auto-ML signals. These two signals are optimized for long positions. You cannot simply short when they issue a sell signal; you need a signal dedicated to shorting which is what we now provide.
The Crypto-ML Short signal is optimized from the ground up for shorting and is, therefore, more sophisticated than being the opposite of our long signals.
An important note factor to consider is since these signals are optimized differently, the long and short signals will conflict from time to time. That means, for example, Auto-ML may have an open long trade while you see an “Open Short” from the short signal.
The Short signal is based on the same mechanism that Auto-ML uses. This means it is continuously pulling data and may issue a signal at any time. Likewise, it issues signals based on a similar machine-learning model, but is optimized to generate profit based on falling price–which is good in this market!
How to Turn on Short Signal Notifications
The Short Signal Status Indicators
If you are new to short selling Bitcoin, the terminology and coloring can be a bit confusing. Fundamentally, you are selling something you don’t have now and then closing your obligation at a future date. You can think of this as selling something now for $100 and then buying it back at $80 to cover your obligation. In this example, you would be better off by $20.
Open Short Sell Signal
Since the “open position” action is to sell, you will see a red indicator color and the wording Open Short. This means you should initiate a short position.
As of this writing, Crypto-ML’s Short Status is Open Short. Looking at the status below, you’ll see the position was opened on Nov 9 at $6347.19. If prices continue to fall, this position will continue to gain.
Close Short Sell Signal
When it comes time to then close the position and ideally profit, you will receive a signal that will be green and tell you to Close Short. This means it’s time to exit the trade and lock in any gain or loss.
When the trade above closes, you will receive the notification to Close Short.
How do I see trade history?
Crypto-ML is transparent in providing actual trade data for past trades. Short sell signals can be found on the Short Sell Trade History page.
Get Started Shorting Bitcoin
- To receive short selling signals, configure your Notification Settings
- To learn how to short sell Bitcoin, read How to Short Bitcoin
- Swim with the current! Be sure you also understand the Crypto-ML Market Index
Please let us know below if you have any questions or comments.