Rise/Fall Strategy

1. Setup

• Timeframe: 5-minute chart
• Indicators:
  • 5-period Simple Moving Average (SMA)
  • 20-period Simple Moving Average (SMA)
  • 14-period Relative Strength Index (RSI)

2. Entry Signals

• Buy ("Rise") Signal:

  • The 5-period SMA crosses above the 20-period SMA.
  • The RSI is above 50.

• Sell ("Fall") Signal:

  • The 5-period SMA crosses below the 20-period SMA.
  • The RSI is below 50.

3. Exit Signals

• Expiration: Set a fixed expiration time (e.g., 5 minutes) that matches your trading timeframe.
• Stop-Loss: If applicable, set a stop-loss to limit potential losses.

4. Risk Management

• Position Sizing: Risk only 1-2% of your account per trade. For a $10 account, this means risking $0.10 to $0.20 per trade.
• Number of Trades: Limit the number of trades per day to avoid overtrading.

Steps to Implement the Strategy

1. Identify the Trend:

   • Open a 5-minute chart of the asset you want to trade.
   • Apply the 5-period and 20-period SMAs.
   • Apply the 14-period RSI.

2. Look for Crossovers:

   • Monitor the moving averages for crossover signals.
   • Confirm the crossover with the RSI indicator.

3. Place a Trade:

   • Buy ("Rise") Trade: When the 5-period SMA crosses above the 20-period SMA and the RSI is above 50.
   • Sell ("Fall") Trade: When the 5-period SMA crosses below the 20-period SMA and the RSI is below 50.
   • Set the trade amount to $0.10 to $0.20.

4. Set Expiration:

   • Choose a 5-minute expiration for the trade to match the timeframe of your analysis.

5. Monitor and Exit:

   • Allow the trade to expire naturally.
   • Monitor the trade and be ready to intervene if necessary (e.g., closing the trade early if it moves significantly against you).

Example Trade

Buy ("Rise") Trade

• Account Size: $10
• Risk Per Trade: $0.10 (1% of account)
• Trade Signal: 5-period SMA crosses above the 20-period SMA, RSI is at 55
• Trade Execution: Place a "Rise" trade with $0.10
• Expiration: 5 minutes

Sell ("Fall") Trade

• Account Size: $10
• Risk Per Trade: $0.10 (1% of account)
• Trade Signal: 5-period SMA crosses below the 20-period SMA, RSI is at 45
• Trade Execution: Place a "Fall" trade with $0.10
• Expiration: 5 minutes