All lessons

Understand crypto before trading

1What is crypto trading? 2Blockchains, ledgers and consensus 3Bitcoin, Ethereum, coins and tokens 4Build a safe practice plan

Wallets and personal security

5Wallets, keys and custody 6Recovery phrases and backups 7Networks, addresses and transfers 8Phishing, approvals and scams

Understand the trading venue

9Centralized and decentralized venues 10Pairs, order books and spreads 11Spot orders and execution 12Fees, slippage and liquidity

Risk before returns

13Size a spot position 14Portfolio concentration and correlations 15Drawdown, R multiples and expectancy 16Stablecoins and counterparty risk

Read crypto market structure

17Candles and an around-the-clock market 18Trends, ranges and price levels 19Breakouts, volume and confirmation 20Indicators and volatility

Apply chart frameworks to crypto

21Dow-style structure: what would change your view? 22Wyckoff in spot crypto: read the range carefully 23Elliott counts: keep an alternative on the page 24Liquidity sweeps: separate the wick from the story 25FVG and OTE: transfer the rules, not the promises

Understand asset economics

26Supply, market cap and FDV 27Token unlocks and distribution 28Network activity and on-chain data 29Research a project critically

Understand derivatives before considering them

30Spot, futures and perpetual contracts 31Funding, basis and mark price 32Margin, leverage and liquidation 33Open interest and liquidation data

Derivatives through paper examples

34Linear perpetual P&L: calculate the money, not the excitement 35Collateral and liquidation: a deliberately simplified worksheet 36Funding carry: count what you keep 37Dated futures: follow both sides of the hedge 38Calls and puts: payoff is not profit

Explore DeFi with caution

39Smart contracts and applications 40AMM pools and price impact 41Liquidity provision and changing asset value 42Staking, lending and bridges

Understand ecosystem risks

43Constant-product AMMs: calculate the moving price 44LP divergence loss: choose the right comparison 45Reorgs, bridges and L2s: what is actually final? 46MEV and arbitrage: subtract the competition 47DEX approvals: inspect before you sign

Build and test market hypotheses

48Market context and catalysts 49Write a setup rulebook 50Profiles, order flow and SMC limits 51Backtest crypto data honestly

Research, allocation and review

52Token vesting: size the unlock, then ask why 53On-chain metrics: count activity, not stories 54Stablecoin depeg: map access, not just reserves 55Rebalancing: weights change even when you do nothing 56Advanced crypto capstone: defend the whole plan

Practice, review and stay informed

57Paper trade and keep a journal 58FOMO and decision routines 59Records, local rules and changing information 60Capstone: research and risk plan

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Write a setup rulebook

3 min read

If the entry rule changes after every loss, you are testing a moving target. Write the rulebook before the sample begins.

Here is what we will figure out

Turn a chart idea into a complete, testable paper-trading decision.

A setup is a defined situation, not permission to buy whenever a chart feels promising. Specify the asset and venue, timeframe, observable conditions and the earliest moment the decision can be made. Someone else should be able to identify the same candidate.

Write entry, invalidation, planned exit and maximum cash risk together. Include fees, order type and a rule for a missed or partial fill. Define no-trade conditions such as missing data, excessive spread or an already reached session limit.

Freeze the rules before testing a sample. Record skipped candidates and losing examples as carefully as winners. If you change a rule after seeing results, label a new version and test it separately; otherwise the apparent improvement may simply fit the past.

Let’s use numbers · hypothetical example

For a fictional token, a paper plan buys 5 units at USD 20 only after a specified close. Invalidation is USD 19 and target USD 22: planned price loss USD 5 and gain USD 10, before costs. A gap can worsen the loss.

Keep in mind

The target ratio is not a forecast or proof of positive expectancy. The conditions may never produce a valid entry.

Your turn

Write a one-page rulebook and test whether two readers identify the same decisions on five covered charts.

A quick check before we move on

What if a required condition is missing?

Change the rule after entering
Skip or wait according to the written rules
Enter because the target looks attractive

Check answer

Skip or wait according to the written rules A testable setup requires all predefined conditions. An attractive target cannot replace missing evidence.

Sources and further reading

Content reviewed: 29 October 2026