The 3 Things I Check Before Every Crypto Trade
Been trading crypto full-time for 4 years. Blew two accounts before I figured out what actually matters.
Here's the exact 3-step filter I run before entering any trade. If all 3 don't check out, I don't trade. Period.
1. Is the market regime in my favor?
Most traders lose because they run a trending strategy in a ranging market. Before I even look at a chart, I classify the current regime:
Trending (ADX > 25, clear structure) → I'm taking momentum signals
Ranging (ADX < 20, choppy) → I'm sitting on my hands or scalping edges
Transitioning → I'm watching for a breakout with reduced size
90% of my losing trades came from ignoring this step.
2. Does volume confirm the move?
Price without volume is noise. I need to see:
Current volume at least 1.5x the 20-period average
Volume expanding in the direction of my trade
No divergence between price and volume (price up, volume dying = trap)
If volume isn't there, the move isn't real.
3. Where am I wrong?
Before I think about targets, I identify my stop loss. Not based on how much I'm willing to lose — based on where my thesis is invalidated.
If I'm buying a pullback to the 21 EMA, my stop goes below the swing low
If I'm buying a breakout, my stop goes below the consolidation
If there's no clean invalidation level, I skip the trade entirely
Most people ask "how much can I make?" The right question is "how much can I lose, and am I okay with that?"
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This framework turned me from a gambler into a consistent trader. I break it down in detail inside Alpha Signals — including the momentum scoring system I use to rate every setup from 1-10.
If you're tired of guessing, that's what we built this for.