A Bit Of History I have had many successes as well as failures in my oh-so-many decades of trading stocks and options. Nothing compares however with the near miss I had with Bitcoin. My first introduction to Bitcoin was via Robert Prechter, long-time editor of The Elliott Wave Theorist who first recommended Bitcoin about $0.01, YES, one-cent, in one of his 2010 issues. Then, having ignored that recommendation, my next introduction to Bitcoin was through some members of an informal trading group, circa 2014-2016 that used to meet for Friday happy hours in Old Town Scottsdale. A few of these fellow traders had changed their allegiance from trading stock options to accumulating Bitcoin and to assorted other crypto's, Even their budding successes failed to motivate me to jump onto the Bitcoin bandwagon. Fast-forward to 2020-2021 and about half of that trading group has retired, based almost entirely on their crypto investments. The greatest success story just spent six months in French Polynesia, about to embark on a cross country road trip in his new Sprinter Van to get out of the hot desert summer. Kudos to you all, especailly the ones who still subscribe to this service, loyal patrons and friends. Sorry I missed the Bitcoin boat, but as I am being told over and over again, there is still time for me. Consider what follows as my formal foray into the Bitcoin club, but doing it with what I know best: Option Trading. Merging Option Trading with Bitcoin With the advent of BITO, it is now feasible to trade the movements of Bitcoin with liquid options in stock brokerage accounts. We started in earnest this year in Blue Line Trading, adapting our pattern recognition and trend model trading signals to both short and medium term options. So far in 2024 we are generating about one trade a month between the PRO and Premium Services. Results have been on a level consistent with a long-term successful trading system. For our purposes today, lets examine the results solely for signal taken in the Premium Service, to get a sense of what has been real time, real money trades: Bitcoin/BITO Option Trading Signals - Premium Service Lets now take a look at the results assuming that half of the Best Returns were realized for each of the above trades, i.e. 50% trailing stops: *Note: The BITO Mar 15 $23C went off the board at a profit of 615.83% having never even gotten close to a 50% trailing stop. Results I have the luxury of going back to previous years and "paper trading" the Bitcoin Buy/Sell signals that would have been tradable with options if options were then available, but prefer to just rest my case on the real time, real money examples above. These above results pale in comparison to what would have been possible during Bitcoin 300% gain since 2022 (outperforming the S&P by 240%), between 2019-2021 Bitcoin gained 2,000% and between 2016 and 2018 Bitcoin provided investors with a staggering 9,000% gain. So while our trade management systems returned an impressive average of 267% year-to-date, that has been in the face of a paltry 50% Bitcoin gain YTD. In other words our system is outperforming Bitcoin by about 5X, five-fold. Imagine the returns on the next mega Bitcoin move, whether up or down, Conclusion Although I have no intention to do so, it has occurred to me to drop every tradable EXCEPT Bitcoin and rely on the inherent volatility Bitcoin has provided over the past decade to generate all the returns we need to thrive trading options going forward. In fact, if you just wanted to take the Bitcoin/BITO trades going forward, I could hardly blame you. If nothing else, stamp this into your trading regimen: The next time you see a BITO trade in this service: TAKE IT - No questions asked. It may or may not be the next "Big one," but do not doubt for a moment that the our system will catch that next big move, it's by design and I should know, I designed it. Bitcoin/BITO Charts Bitcoin Long Term - Weekly Current BITO Trade We entered 1/2 a long position on May 22nd as per this Alert. So far, no cigar and until Bitcoin rallies to above $72K or declines below $63K, there is nothing more to do. If the call declines 50% from their Best Return, our 50% trailing stop kicks in. Two losing trades in a row in this system is rare, so if we are stopped out of this trade, be sure to get into the next Buy or Sell, with both hands,
