Emasar Trading System - Assets, Time Frames and Signals

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Emasar Trading System - Assets, Time Frames and Signals

Post by jesse »

Emasar was the first trading system that i learned and it is the foundation of the way I trade now. It is both extremely powerful and very intuitive, however applying it successfully requires that you create some rules for yourself about how to use it. here i begin to outline how i am currently using emasar … i am by no means suggesting that this is the best way to trade it but hopefully if you do not have a good system in place yourself you can use this as an example of how to create your own rules that work for you. if you have every done any basic coding, creating your trading system is like programming a computer. you must instruct the computer what to do in every possible scenario and it will execute your instructions exactly. when you are trading your job is to be the computer and execute the code of the trading system, but this code can also be modified as needed so long as it is done deliberately and consistently. your trading system will always be a work in progress and there will always be grey areas that you haven’t yet ironed out but the stronger and more air tight it becomes the better your trading will be and the less stress you will experience.

What assets will you trade ?

I currently trade BTC/USD, ETH/BTC and ALT/ETH pairs under the following conditions : I am always trading BTCUSD in the direction of the prevailing 4h emasar trend … BTC is the heartbeat of the entire crypto space and affects every other ctypo asset so you might as well be trading it. Additionally I trade ETHBTC to the long side when BTCUSD is in a bull trend and I trade ALT/ETH pairs to the long side when ETHBTC is in a 4h bullish emasar trend. My goal is to accumulate as much BTC as possible by accumulating ETH as altcoins trend against it. I am only interested in trading altcoins that are outperforming ETH. i limit myself to 3 active altcoin positions at once … so at any one time I will have positions in BTCUSD, ETHBTC and 3 ALTETH pairs. as tempting as it can be to load up on lots of ALT positions simultaniously i have found that it is beyond my capacity to effectively manage that many positions. However once I have acheived a 0 or negative cost basis on a position I will sometimes leave a spot position open that I am no longer actively managing and I don’t count this.

What time frames will you trade on ?

Tyler said recently to “find the time frame that works best for the asset you are trading … a time frame that works as a function of the volatility of the underlying market”. different systems will be more effective on different time frames and you want to find the sweet spot between your system and the time frame you are using it on. find the time frame where your system does the best job of getting you in early, avoids excessive chop and gets you out as soon as possible once the trend has turned. you can do this by looking back at historical charts to see how your system fared on various time frames and by experimenting with live trading.

I use the 4h time frame as the primary trend indicator for most crypto assets and it is my preferred time frame to trade. I will also trade the 1h time frame with smaller position sizes when it provides signals that i beleive could be front-running signals on the 4h trend or if i beleive the prevailing 4h trend is about to stop out. When evaluating risk on 1h trades where there is an existing 4h trend in place i will use 4h chart for estimating my stop loss, otherwise I often end up in the situation where the 1h chart is stopping out right at 4h support which i always want to avoid. I do not trade lower time frames however i will use them as reference points for placing limit orders in the event that i would need to market buy or sell on a higher time frame.

What Signals will you take ?

If you are new to trading the best thing you can do is choose a time frame and one or two assets and take every single signal in either direction until you gain confidence. Trading the 1 minute chart on BTCUSD is actually a fantastic way to practice trading even though it will most likely not be profitable for emasar. The great thing about trading however is that there is an unlimited supply of assets and signals and you can choose which signals you want to take, as long as you develop an objective strategy for how to evaluate those signals. This is an area of my trading that is still somewhat subjective and I am working to fully clarify … this is something i will be commenting on going forward.

Fresh Signals. My preferred entries are on emasar signals that have just occurred rather than trends that have been around for some time. Tyler says to “develop a base exposure to the trend before getting more agressive with the orders you are setting.” For me this translates into distributing my orders across multiple levels of support in a trend, knowing that not all of them will neccessarily get filled.

1. Enter 20% On Signal Trigger : Baseline exposure
3. Enter 20% at 50 ema : The “fair value” price of a trend
4. Enter 30% at Beach : Discounted price
5. Enter 10% at Ocean : Clearence Sale
6. Enter 10% at Buoy : Fire Sale

The marker is also level of critical support and I will add an additional 10% at the marker. With every level of support the risk / reward ratio grows more favorable.

Existing Signals. If a trend is already in place before I enter I consider it to be higher risk and I will enter at the following levels :

1. Enter 10% at 50 ema
2. Enter 40% at Beach
3. Enter 30% at Ocean
4. Enter 10% at Buoy

Again the marker adds confluence and importance to whatever level it is at and i will add 10% to that level.
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Re: Emasar Trading System - Assets, Time Frames and Signals

Post by Stormbreaker42 »

Hi, Jesse!

First, I really like some ideas that you're posting here! Emasar Is also the first real tradingsystem that I've learned and I've been looking for some profitable strategies since the launch.

assets to trade:

I often get caught in the chaos of focussing on too many positions btc/usd, alts/btc, alts/usd, etc, everywhere I look I see nice opportunities. So I'm going to adopt your idea about limiting myself to coins that are trending vs btc or eth. In trying to manage those I've developed a good routine. Everyday I update my p/l in excel with new orders that were executed that day, excel calculates my average entry and then I update the charts in tradingview. I put everything on tradingview: my av entry, open orders: entries, Sl & profits) I don't calculate the risk on every trade but I have a template to calc everything: example ( https://gyazo.com/786996544a545c13e7afa0a4987d1c49 ) This really helps me out, because if I sell some coins with profit, my average entry lowers on those existing coins, but If I buy back some, my av entry rises again, impossible to track it all. This also encourages me to take profits ex: to get my av entry from the 50 ema to the beach or lower, to the ocean. Sometimes it's possible to create a freeride but without putting it into my template I wouldn't know. Too many entries and exits :shock: .

My favorite strategy is to layer in a 4H bullish emasar only if there is a daily or 12H golden cross (bullish higher TF). This to limit fake-outs (ex 4h bullish but runs into an higher TF downtrend/beach). The 4h beach equals testing the cross most of the time. I got this idea from Mark, that when the daily crosses bullish a.this cross will likely get tested, and b. that those crosses are a good sign of a starting bulltrend with a fantastic RR.

entries & stake:
I like to look at the 1h, 4 and 12H to check which entries match (beaches, markers, buoys).
I have some pre-calculated stakes pyramid-like (15, 20, 30, 35%) or 4x equal stake or 2x equal stake, depending on the fomo :D
My priority is to get my av down to the beach if I bought higher. It has been a tough lesson just to layer in multiple entries.
Like your idea on fresh vs existing signals and adding 10% at the marker! Most of the times, I've been a bit late.

I really like the idea of having a baseline exposure. I've noticed that if I have an entry from the first signal and the price starts running away, that I can give into fomo, only to raise my av entry to the current beach or buoy. This enables me to buy breakouts(buying high) in the trend while also keeping risk in check.

profits: I like to take 1/4 of my av stake on the first 40% up. This because somehow, I've had too many trades making 40%, then crashing, ending with some losses. Also taking some off the table lowers my av entry = lower risk. I'll take more profits on higher TF resistance, 12h or daily markers. I saw too many uptrends fail against those markers.

I risk 20% from my av entry and that should be 1unit of risk. I don't like exiting when I have >20% loss because that's just hard to recover with profits. If my stake is small (1 unit of risk, for me 200dollar) I don't care and might let it go lower. Sometimes I'm stupid and just don't execute (because, alt season ;) ) I do get inclined to sell when I see a 4H or a 12h DC.
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