Bitcoin

I thought it was time to buy Bitcoin when I heard that CBOE was dropping Bitcoin futures contracts. Supposedly, when everyone hates something, it's the time to buy it. I have also seen research, which argues for a big rise in Bitcoin. I set up a simple trading model and it confirmed that I should go long now. I got approval to trade CME Bitcoin futures on Monday. Looking at the stochastic oscillator on the chart above, I thought there would be a bit of a pullback and put in an order yesterday to buy at $4000 when the futures were trading at $4140 with a stop at $3845. I went to a meeting and when I came out  I saw Bitcoin was at $4700. So, trying to be too clever, I missed the boat. The problem is that the stop is still the same according to my trading model. One contract is 5 Bitcoins. I don't want to risk USD5000+ on this trade. So, I will need to wait, probably a couple of weeks before the stop will change and I can place a trade with acceptable risk. The alternative risk is that Bitcoin continues to go higher from here. But after yesterday, I really want to stick to the model and not try to be clever.

This is one of three more "macro" trades that I am thinking of doing. At the moment, I don't have the time to do the research to fix my shorter term trading model.