Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: GerbertPhills on April 23, 2024, 10:33:25 AM
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Looking for a way to optimize my strategy:
Currently buying BTCUSDT at a certain price and selling it at +2% on a daily basis.
NEVER SELLING AT LOSS. Always waiting for it to reach the buy price + 2%.
I was doing it for a while with good profits, but couple of time I got stuck for a long time because I was holding it till it reached my +2%. So this time I divided the budget into 10 steps, so that if it doesn't reach my +2% for a while I can activate the next step when BTC drops to a certain price and keep doing my +2%.
The division is based on the BTCUSDT, 5000 per step:
Step1: Buy when 1BTC = 60,000USDT
Step2: Buy when 1BTC = 55,000USDT
Step3: Buy when 1BTC = 50,000USDT
And etc.
In total 10 steps.
I personally don't believe that it will ever reach lower than my 10th step, so that's ok for me.
Would love to hear from people who do similar strategies (1. Never sell at loss, 2. Divided the budget), how they decide on their buy signal and how they divided their steps. I feel like my entry points are quite random and could be optimized
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That's really a long process to take and needs to be in front of computer longer time,if you can keep tracking at this then why not consider altcoins as well?
I'm not that person that has a long time to use so I will keep my Holding instead .
But you are doing a good thing here so continue with that mate ..
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The division is based on the BTCUSDT, 5000 per step:
Step1: Buy when 1BTC = 60,000USDT
Step2: Buy when 1BTC = 55,000USDT
Step3: Buy when 1BTC = 50,000USDT
And etc.
In total 10 steps.
I personally don't believe that it will ever reach lower than my 10th step, so that's ok for me.
This is where you get it wrong, not going lower than your price is a fallacy that you will not see coming. Bitcoin can go below what you assume, even expert can't tell you exactly the bus stop support of Bitcoin if something bad should happen. What I will advise you to do as you are buying as it lower, you should have more money on the low to buy more when it deep.
Another alternative I will like you to look into is to the major supports that we have in the Bitcoin chart, this will help you more and understand how to buy better than this you strategy but if you prefer own idea, you better have more money to buy at the Lower price.
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Its have been similar strategies recommended by many experience trader, spent your money to buy bitcoin with difference price and currently I adopted your strategies not only for investing in bitcoin but also in altcoin. Its very good strategies how to manage minimalize risk and earn much profitable when bitcoin going down,
I think it not only applies when buying but also when selling positions and you must sell your assets with difference price by spending around few percent your coins to sell.
First selling order has higher price and the second and third order sell put higher around 10% to 20% and make more profitable if success raise to your target price.
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This is not a very attractive strategy to me. Yes never selling in loss is good but selling just after 2% is not a good strategy. What would happen after selling and bitcoin never comes back to that level and continue flying. This is why it is advisable to Hold and even if you selling 2% is too small and make sure you never a nocoiner.
Anything can happen. It might or it might not reach your lowest level, Just make sure you cautious and not swayed by your emotions.
Personally I still believe in holding and if you taking profit make sure it's worth it. Like collecting 25% first and maybe another 25% when it shoots more but no matter what i would advice never selling all your coins.
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Currently buying BTCUSDT at a certain price and selling it at +2% on a daily basis.
NEVER SELLING AT LOSS. Always waiting for it to reach the buy price + 2%.
Hope you are not referring to future trading which is BTCUSDT pair. It is BTC/USDT on spot trading. If you want to hold bitcoin for a long time, do not go for future trading. Sport trading is less risky and suitable for long term investment.
Do not think bitcoin will go down $60000 for now. It is better to buy at $60000 if possible bitcoin fall to that price again. I think waiting for $50000 as of now may be a day that may not come for a long time, if provided bitcoin will still fall that low.
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That's really a long process to take and needs to be in front of computer longer time,if you can keep tracking at this then why not consider altcoins as well?
I don't think it requires him to be in front of his screen if he's using spot trading - he could just set a notification bot and go on to trade each time the bot alerts him (that would be a different case in future trading though).
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Would love to hear from people who do similar strategies (1. Never sell at loss, 2. Divided the budget), how they decide on their buy signal and how they divided their steps. I feel like my entry points are quite random and could be optimized
Its a good strategy and I think we should call it fixed profit scalping as you are scalping here which in itself a hard task especially for a newbie because anything can happen but yeah 2% is not a big pump that it could make you lot of money unless you have lot of funds or doing future trading. If you are doing future trading I would love to suggest you that you should avoid it because it can lose all of yours profits in one go which you have made by 100 trades.
And yeah I liked the 10 steps strategy its really goos but it requires us to control our emotions, because let's say BTC drops by $5k won't you consider to insert all of your money in one go, let's say it drops another $5k and its seem impossible for the BTC to go further down, and your mind telling you to insert all of the funds now as you might not get another opportunity later, how would you react in such situations. Please response with this. And on what basis.
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It sounds like a well-planned strategy and makes sense... However, you should record your profits and losses, so that you can see your total P&L (potential and realized), whether or not it's better than simply DCA or VA strategy, which takes less effort to execute. I think your strategy can be difficult on a bear market since your +2% profit won't be enough to offset your potential losses on the higher price level. About the realized losses (not the potential ones), however, you'll always be on profit and can be always on profit if the price can go back to the higher level.
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Currently buying BTCUSDT at a certain price and selling it at +2% on a daily basis.
NEVER SELLING AT LOSS. Always waiting for it to reach the buy price + 2%.
A little realistic, but in my opinion it's still not optimal, maybe because my level of confidence in BTC is too high so I think 2% in BTC is an easy step.. Until now I prefer to hold and wait for the bullrun moment which is the effect of the halving Bitcoins.
Your strategy is quite good too, but also make sure you have a strong hand when you know the fact that the price of Bitcoin which is currently bearish could make you trapped without being able to sell for a long time. So your wait will not be worth your income later.
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I do not think that your strategy will succeed, at least at the present time. Given that we are in a bullish season, it is difficult to expect that Bitcoin will fall below 55K$ at the present time. This is unlikely at the present time, although it is not impossible.
Therefore, it is better for you to raise the entry points that you have divided slightly, because you may miss the opportunity to buy at the current prices, which are considered good entry points given the expected large rise after the halving.
Why not buy and hold for the long term and stay away from all the headaches
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So you were doing quick scalping and now you are doing it with the DCA method where you buy in portions after it drops a certain amount from its price and you use an equally divided portion of your capital each time and then sell for profit after each bought portion earns you at least 2% or 2% as a fixed profit. That is a good strategy and it will work as long as you don't exhaust your capital and Bitcoin doesn't drop to a point where you can't buy anymore, in that case, you will need to just sit and wait for it to recover.
If you think your strategy is flexible, you can increase the price interval in which you are buying if you see the market doing a long correction so that you don't get out of funds before the dip reaches its bottom.
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Looking for a way to optimize my strategy:
Currently buying BTCUSDT at a certain price and selling it at +2% on a daily basis.
NEVER SELLING AT LOSS. Always waiting for it to reach the buy price + 2%.
I think it is better to think about 200 week moving average
When the price is much above 200WMA, it is a good moment to sell a little bit.
I created a tool to implement thi strategy here:
https://bitcoindata.science/withdrawal-strategy
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The division is based on the BTCUSDT, 5000 per step:
Step1: Buy when 1BTC = 60,000USDT
Step2: Buy when 1BTC = 55,000USDT
Step3: Buy when 1BTC = 50,000USDT
And etc.
In total 10 steps.
I personally don't believe that it will ever reach lower than my 10th step, so that's ok for me.
All these strategies of yours only apply when bitcoin falls to the particular price you have stationed it to be before buying bitcoin.
Have for once considered what if the price of bitcoin didn't fall as you have already speculated to be, what will you do afterward? To buy at the price you think is okay, that will be higher than the price you have in mind, or forget to buy?
However, you can be lucky if bitcoin experiences a dip, and you later accomplish your investment strategy according to what you have planned out
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So you were doing quick scalping and now you are doing it with the DCA method where you buy in portions after it drops a certain amount from its price and you use an equally divided portion of your capital each time and then sell for profit after each bought portion earns you at least 2% or 2% as a fixed profit. That is a good strategy and it will work as long as you don't exhaust your capital and Bitcoin doesn't drop to a point where you can't buy anymore, in that case, you will need to just sit and wait for it to recover.
If you think your strategy is flexible, you can increase the price interval in which you are buying if you see the market doing a long correction so that you don't get out of funds before the dip reaches its bottom.
For me, this strategy is quite complex and does not promise profit or capital management security. If the investor really believes in the future of BTC, DCA over time will be more suitable, especially DCA in the 2022-2023 accumulation zone.
In the case of a trader who wants to make short-term profits, he can trade based on a specific method: Price action, Wyckoff, RSI, MACD, Ichimoku... with decisions made based on analysis instead of emotions related to price zones spaced apart by $5K. I also don't know why it's $5K instead of $1K or $10K.
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For me, this strategy is quite complex and does not promise profit or capital management security. If the investor really believes in the future of BTC, DCA over time will be more suitable, especially DCA in the 2022-2023 accumulation zone.
Yeah I personally think that way instead of complicated strategies I just DCA and hodl if I had capital as I am not that guy who has enough time to face the screen all the time so long term investment would be my personal choice.
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Good strategy OP, and if it works for you fine, but I think that there are limits to this strategy of yours. Now that we are in the bull run, and you know that the chance of bitcoin dipping to 50k is very slim so what happen will you not buy and keep on waiting till the price dip to 50k. Or what if bitcoin price keeps pumping and none of your buying order price was met. It means that you will not trade but just watch the market as people millions for the bull run. Hodli is still the best than trading, because a little miscalculation, all your funds are gone.
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Good strategy OP, and if it works for you fine, but I think that there are limits to this strategy of yours. Now that we are in the bull run, and you know that the chance of bitcoin dipping to 50k is very slim so what happen will you not buy and keep on waiting till the price dip to 50k. Or what if bitcoin price keeps pumping and none of your buying order price was met. It means that you will not trade but just watch the market as people millions for the bull run. Hodli is still the best than trading, because a little miscalculation, all your funds are gone.
Bull run?
I would respectfully disagree with you on this because judging from the recent perfoyof bitcoin, I would rather say we're in the bear market rather than a bull run. And besides, the price of Bitcoin has been drastically dipping, just yesterday it was around 66k but today, it dropped to around 63k that's definitely far from being bull run.
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For me, this strategy is quite complex and does not promise profit or capital management security. If the investor really believes in the future of BTC, DCA over time will be more suitable, especially DCA in the 2022-2023 accumulation zone.
Yeah I personally think that way instead of complicated strategies I just DCA and hodl if I had capital as I am not that guy who has enough time to face the screen all the time so long term investment would be my personal choice.
DCA is a good choice when we invest and many people have been successful with the DCA they have done, especially for investors who do not have large capital and only rely on their monthly income to be allocated to buying bitcoin.
However, even though we invest our income with a nominal amount that is not as large as big investors, in reality we still get a lot of profit from the DCA that we do. And I think for people who do it, there's no need to explain anymore.
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a good strategy if you want to implement it, but this strategy requires consistency and commitment in determining future profits,
and here we are required to always monitor the market if we want to get consistent profits,
but basically I can't apply this because I can't do that for a long time in front of the computer or cellphone to monitor the market,
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Looking for a way to optimize my strategy:
Currently buying BTCUSDT at a certain price and selling it at +2% on a daily basis.
NEVER SELLING AT LOSS. Always waiting for it to reach the buy price + 2%.
I was doing it for a while with good profits, but couple of time I got stuck for a long time because I was holding it till it reached my +2%. So this time I divided the budget into 10 steps, so that if it doesn't reach my +2% for a while I can activate the next step when BTC drops to a certain price and keep doing my +2%.
The division is based on the BTCUSDT, 5000 per step:
Step1: Buy when 1BTC = 60,000USDT
Step2: Buy when 1BTC = 55,000USDT
Step3: Buy when 1BTC = 50,000USDT
And etc.
In total 10 steps.
I personally don't believe that it will ever reach lower than my 10th step, so that's ok for me.
Would love to hear from people who do similar strategies (1. Never sell at loss, 2. Divided the budget), how they decide on their buy signal and how they divided their steps. I feel like my entry points are quite random and could be optimized
- Well, it looks like steps 1 and 2 have already been achieved. Whatever your plans are, just pursue them if you think they will help and be effective for you. It's just that in these cases, we can only do dca or day trading if you are deep in trading, that's all.
Good luck with your plans, and I know that you also know that most crypto communities here have their own ways to accumulate Bitcoin in their wallets.