A Super Simple Trading Strategy Anyone Can UsesteemCreated with Sketch.

in crypto •  8 years ago  (edited)

You can use any exchange

But the examples below are taken from my personal Poloniex account. Note: all funds kept on an exchange are at risk always. The best wallets are the ones where you have your private key in your possession.

Trading 1

The strategy can be used starting at any time, but you may want to look for alt-coins that are currently in -the red- before starting, as those are usually good entry levels. It doesn't really matter which chart or coin, just start trading. Small amounts at first. My list (below) shows I am holding some at 0.25btc, others at 0.50btc and some at 1.0btc which is where I am comfortable. Start with a figure you are okay with, so you are not putting too much at risk. This is your target price and you will be maintaining that price no matter the fluctuation of the the market, no matter the coin.

Some coins are difficult to trade if you are trying to hold more than a bitcoin. Your entry may cause the coin to rise if you are buying $1000 dollars worth - these are generally the coins with lower trade volumes. If you would like to keep everything at 1.0btc, it can be done but you would have to buy in slowly, and it may take several weeks.

It's difficult to tell whether something will move up or continue downward. For that reason, look for an alt coin that is moving downward and buy a little bit. Continue buying until you reach your target. If it moves upward after your first buy, keep buying little by little. Stop when you reach your target.

Maintaining Target levels

Once you have achieved target levels for all of the coins you are trading, you only need to stop in once or twice per day to see if any are out of line. Below you see that we have set 0.15btc worth of NSR to buy - which will bring that asset up to a 0.50btc level. You see, were are not so worried about the price of any asset, but rather, maintaining the set value in the account. Then when you check in at any time, it is easy to see which coin is earning money and which one is declining.

Let a rising coin rise until action decreases. Let declining coins decline until they stabalize into buying opportunities!

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Poloniex - Bitcoin-Cryptocurrency Exchange - Balances.jpg
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Slight fluctuations should be ignored - just wait. The example below shows me looking for a good price to sell some VTC at. I check the buy orders and generally look for a buyer just before the big fish are buying. In other words, if you were to see someone waiting to buy 1btc worth, set your price on the next line above. The ones above that bigger buyer, are the smaller $20-dollar buyers. We can wait for the market to absorb those trades (usually very fast).

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0.00004748 VTC-BTC Market - Poloniex Bitcoin-Cryptocurrency Exchange.jpg
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Once you find the price you want, enter that figure in the 'Sell' box, Then enter the amount we need to sell in order to bring it back down to an even 1.0 bitcoin - our target. Done!

The above sale is a profit! If VTC position drops to 0.75btc the next day, we buy 0.25btc to bring it back up to 1.0btc. For the last few days I have been coming in and selling 0.2btc worth of VTC which is rising dramatically.

We keep selling as it rises because we don't know when it will drop.
We keep buying when it falls because we don't know when it will rise.

No matter the coin, this system works and builds wealth.

I hope I have explained myself well enough.

Give it a try over the weekend.


Disclaimer: I am not preferring any of the coins shown. It is just my way of trading.

Whale

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very good post man!

Oh, one more question.

I thought the number one rule of crypto is never leave your coins on an exchange?

The second rule is read the first rule and follow it. The third rule has something to do with secure backups and such, but it seems most people manage to mess that one up. :)

Was curious about your thoughts there and leaving so much coin online where you don't control the private keys. I had a friend who got bit by MTGOX even though I was telling everyone to get their coins off.

Maybe we should all be using Open Ledger then it wouldn't be a problem. :)

Great point @lukestokes! I absolutely forgot to put that in there. I have all my private keys for Steem, Bitcoin and Dash stored safely on pendrives and paper!! Those are the ones that have more in them.

The key point in your comment is "so much" which is a completely relative term. I do not consider $5000 to be something that would make or break me. If Poloniex were hacked tomorrow as MtGox, Bitstamp, and Bitfinex were (I was out of all of those in time), I would lose my $5000.

I am trading this same system on my phone -may post on that. I use Coinomi and can trade the system with my keys in my pocket. The down side to that is that buying and selling carry a higher fee because they go through Shapeshift.

Ah, very good to know your stash is still offline. :)

Thank you for the post. I have just started trading and this post helped!

Hi Norbu. I am a long time follower. I have made much on your posts. Best of luck. Follow the steps and you will see this works.

nice post @sponge-bob

Thank you @silvia ;)

It is crucial to choose the "right" coins. Some soared in te beginning and later they dropped and never came back again (e.g auroracoin). I choose between 6-10 coins at maximum to trade with. I prefer coins that have a solid story and are "alive" since several years. So I can exclose scamcoins.

That's a great warning. There are so many pitfalls. Look at the ZCash fiasco. Hype Open and dive. Now after many many months I may add ZCash to my list to trade this system, but only 1btc worth.

Yeah, zcash might have reached the bottom. For trading a considerable coin. For investing I prefer DASH (only because of Amanda) lol

Considering I trade just about everything else, not sure why I haven't started trading alt-coins. All the principles I know can be applied and it seems there is money to be made. Keep up the good work, continued success to you.

Upvote. Followed

  ·  8 years ago (edited)

Absolutely interesting way of trading. I started trading myself only a week or 2 ago. For a week I spend a whole lot of time trying super short trading cycles; in and out in minutes taking small percentages on the ride up of the constant waves on the currencies. I was able to make profits; a very good percentage (in a week a bit more than 50% on start funds); but it was a day job. Due to an stupid decision (I knew it was stupid but did it anyway) I lost all my gain in matter of hours. Keep in mind that the funds I was playing with was really pocket money, hence the move I made just for the fun of it which was actually stupid to do. I still need to work on the method I choose and see if this could be something I like to do for a long period of time; but so far I know it'll cost me at least a couple of hours a day, and sometimes at night since my method works best when some whale steps in and start buying or selling.

Your method is one that for sure doesn't require hours and hours behind the screen each day. Can you share with us what your gains are in percentages? Maybe on monthly or quarterly or even yearly bases?

I was tracking them with a spreadsheet which would just tell me how much (in dollars) I am up or down on each coin. Now I just see that at the top in Poloniex when it says,

"Estimated value of holdings: $5,831.72 USD / 5.73434642 BTC"

That is what it is at right now. . .

I just check in 4 or 5 times per day. I rarely make a move until I am 10 to 20% up or down. As in the example, VTC was 7% up at 1.074btc value. Worth trading that out. my VTC cycles over the past few mo.

  ·  8 years ago (edited)

Thanks for a view in current status. Any idea with what (amount) funds you started and how long ago?

I'm very interested to see time spend vs gain woth what method. My method cost a lot of time, hence it'll eat from me time a can use to create fiat money, therefore when I would adopt my method for a longer periode of time, it shall also pay for part of my bills. Also am not sure of the 50+% percentage is achievable when no big news like the BTC EFT and the sudden explosion of almost all coins happened.

I've heard of people using similar strategies when rebalancing 401k mutual fund divisions. It works pretty well and can really make things easier to handle emotionally (i.e. Price went down? Cool, I'll buy more and my average buy price will now be less, or Price went up? Cool, I can sell out of some of my profits to rebalance into something else)

I know. I stay away from the low volume coins. BLK and VTC have only cycled 2 times in a year or so. But, you just check in and keep your targets even. When they do move, the profits are nice. I took more than 0.7btc ($700) in the last week.

Great write up. I like that idea, but how do you know if a coin isn't just going to go down... and down... and down... and be ignored? I guess not everything can be a win. :)

I hold blackcoin and verticoin when they are down, down... forever it seems - then one day they start to rise and I start selling. They all have their moments.

That's a great point. As long as the project stays alive, there's a good chance someone will come along and pump it eventually.

So I guess you are going to put a lot of bitcoin in Steem then haha...It is falling...float it to the moon!

I have most of my Steem powered up now so it's not being traded. Taking this on faith! The recent rise was great - I traded away my liquid steem. I will get it back when it bottoms again - no worries.

Excellent post friend.

Thanks for sharing this. As a new guy I am learning all I can. Followed.

Exchellent post Mr @sponge-bob _))
Thank you for the good and hard work ..!!

This sounds great in theory until you buy into a dead coin. What rule stops you continously buying a coin that drops forever? How do you handle this situation?

Totally beautiful. Thanks for sharing this strategy.