We hold a position consisting of two round lots with a cost basis that has been reduced by profit-taking to 14022. Entry came on December 8 via an explicit recommendation to get long at 16042. This paper-trade was offered mainly to demonstrate the ease and effectiveness of a tactic known by Rick’s Picks subscribers as a ‘mechanical’ entry. The set-up is designed to hold risk and reward constant at 1:3 from entry to exit.  Currently, my price target is 22,101, a ‘Hidden Pivot’ resistance that is also my minimum upside projection for $BRTI, a non-trading CME symbol that aggregates the order books of some the most popular bitcoin exchanges. I am now recommending that traders exit a third round lot (from an original four) at 20616.

I will also recommend bidding 15671 for two round lots, stop 14021, good through Friday. This would double the size of our position. An attempt to do so on Tuesday morning at 17319 got timed out because I’d advised a noon expiration. Please note that these trades are being offered on this site and at FXStreet.com to help allay skepticism that bitcoin can be tamed for trading purposes. As more such trades are proffered in the future, I would suggest that you keep score of profits and losses based on whether my recommendations would have worked for you personally. In general, my instructions will be detailed, explicit and timely, and entry will almost invariably be by way of limit bids. _______ UPDATE (Dec 20, 5:34 p.m. EST): The 15671 bid filled moments ago. I’ll be interested to see whether the increasingly violent swings in this vehicle can take out our very wide stop-loss at 14021.  If so, it will have been bitcoin’s most spectacular dive so far — $5685, or 29%, in just a few short days. I stuck with this paper trade rather than pulling the order because there were ample profits from an earlier trade to offset a worst-case loss. For now, we hold a hypothetical four round lots, stop 14021, for a bull play to 22,101. Going forward, the stop-loss on the entire position (i.e., four round lots) should be held o-c-o with an order to exit two round lots at the 20616 target given above. _______ UPDATE (Posted in the chat room at 9:40 p.m. and emailed to subscribers minutes later): Sell the two round lots acquired earlier today for 15671 now, with $BRTI trading around 16470. Keep the two round lots acquired on Dec 8. I am issuing this bulletin because of a link just posted in the chat room to a news story that Charlie Lee, creator of Litecoin, had sold his entire inventory.  What troubles me most about it is that Lee gave a VERY unpersuasive reason for getting out of Litecoin — i.e., he wants to eliminate the appearance of conflict. This is pure b-s.  He is an insider, and he is selling because he thinks Litecoin is an opportune sale at these heights. This is a shot across the bow for anyone holding onto bitcoin for a play to $50,000.  ______ UPDATE (Dec 21, 2:52 p.m.): Exit the remaining two round lots now. $BRTI is trading around 15273 at the moment, but it was at 15316 when I put out the initial sell recommendation in the chat room.  I’ll use the lower number to calculate hypothetical P&L.