Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: GerbertPhills on March 14, 2024, 08:34:31 PM
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I am using a certain strategy, which is not exactly DCA and not exactly Grid trading.
Does anyone know if there is a strategy that follows these actions:
- Buy BTC and try and to sell with +2%. Profit from volatility.
- NEVER SELL at loss. If BTC went down, just wait for it to come back, weeks, months, years.. HODL. This way you never lose, if you believe that BTC will always get back up (which I do).
- Divide your budget to 10 steps, so that you can activate each step if BTC rate goes down and you are stuck (let's say if it goes down from 650000 to 60000 you activate next step, then from 60000 to 55000 and then every 5000 so on until the rate drops to 20000, which I don't believe it will fall lower than that so it's fine to me) so that you can keep trading on volatility doesn't matter the price of the BTC at the moment.
My goal is not to maximize profits and speculate on BTC rate, but to always profit from volatility no matter the current BTC price, this way providing a more or less stable income.
I am just looking to know if someone else is using the same and if there is a name maybe for such a strategy?
Thanks
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You mean you will buy and make 2% profit and sell and you will continue to do that until the price fall. If the price fall, you will not sell until bitcoin price increases back. I think this is a good strategy if you are not using leverage but trading in the spot market. If I am a trader, I do not think I can be that patient in reality during unrealized loss.
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This exists, I do not remember the name of it but it has been done before. During bull periods of course it is quite profitable and many people do it and they get a lot of money from it. However, imagine in a situation where the price starts to fall, you "never" sell so you are going to end up holding it as long as you have to. Don't get me wrong, even in that case if you can hold it, or even put more money in and DCA your position, then it would be fine. However, if you plan to act quickly and not hold for many months, even over 2 years sometimes, then this doesn't work during bear period. Thankfully, it looks like we are in bull period.
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My goal is not to maximize profits and speculate on BTC rate, but to always profit from volatility no matter the current BTC price, this way providing a more or less stable income.
I am just looking to know if someone else is using the same and if there is a name maybe for such a strategy?
That's a good strategy but what would be those 10 steps that we have to make after every $5k decrement? Well, if we were to invest some funds in BTC after every $5k decrement then that might not be a good thing to get benefit from the market. But your aim here is to hold BTC until you are in profit and not to speculate on it. So I guess you prefer to be a long-term investor in BTC.
Considering your strategy might provide you with a good amount of opportunities to invest funds in BTC because there will be many times when BTC will be down by $5k and way more than that. And in the long run, it can be a good strategy but not in the short run. Because as of today BTC went from $73k to $66k, So according to your strategy if you would have bought around $68k even you would be in profit at the moment because now the rate of BTC is $70+k. But you might not get so many opportunities to invest in short time. But still a good one.