A trading strategy

in cryptocurrency •  7 years ago 

I have a new strategy. If I'm right, it guarantees profits. Care to learn more?
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Since starting in the crypto world a few months ago (at the previous ATH) I have been dealing in $AUD, but more recently in $USD. Whenever I would see a rise in BTC, it would be imitated by a rise in the ALT's. I have only just learnt that this is because of a very important relationship.

BTC/ALT, where ALT = BTC/fiat

Please correct me if I'm wrong. Because I'm about to go all in on this theory.

Let's push on. I have four scenarios that can happen in the crypto world.

BTC 👆 increases in value

BTC 👇 decreases in value

ALT 👆 increases in value

ALT 👇 decreases in value

These scenarios can be caused by any number of things but the important thing is that you only look at the value in terms of Satoshis. This point is vital

For my trading technique we are only trying to amass BTC value. I am doing this because I am confident that BTC will not go away. There support is too great for it to just disappear. So the dollar value of BTC will continue to rise and will not fall ulnless something completely disastrous happens.

let's break it down

For each of the four scenarios I have designed a play in which you are guaranteed to profit.

scenario 1

BTC 👆

ALT/BTCup in valuedown in value
ALTCOIN*send ALT's into BTC, *buy back into ALT's using BTC when ALT has a correction or when ALT consolidates and stabilizessend BTC into ALT's, buy more BTC at the value of profit made (using fiat) or send ALT's back to BTC when ALT returns to previous value
BITCOINsend BTC into ALT's, buy more BTC at correction or when BTC consolidates and stabilizessend ALT's into BTC, buy more BTC and hodl, when BTC returns to previous level you can repurchase those ALT's

There you have it, four scenarios, four plays, four ways to profit. These scenarios only work if the rise or fall happens independently in either an ALT or BTC. It gets more complex when both are moving, but I'm sure if you are clever you can work out what to do.

There are also a few rules to play by using this strategy.

  • be prepared, always have amounts in both your preferred ALT's and BTC, so that you can act on any scenario
  • only carry stable ALT's, high risk ALT's can disappear and your profits stored in them can too!
  • remember we are trying to build our level of satoshis, never look at the dollar value of your holdings unless you want to draw it into FIAT currency
  • when you're looking to put more money in always use TA to find a good entry point for whichever crypto you are depositing fiat currency into, either that or follow someone who does TA on your coin

As always, this is not trading advice, this is a theory, I want discussion, does this work? Trade at your own risk and never trade more than you can afford to lose.

Peace, Love and Light

@stickycj

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Really interested to hear some other respectable people chime in, would appreciate any thoughts from @samstonehill, @ashr, @hotsauceislethal, @joshsigurdson, @jerrybanfield and @ash.

Report back with your results.. trading 'theories' are usually garbage, since they are either put to the test with the author's capital, or they aren't (if the author has no capital or business trading in the first place)

Usually ends up being the latter, but I'd be intruiged to see some positive results, get 1% account gain daily for a few years and you could be a millionaire in short order.

Consistency is key.

thanks for your effective strategy. if you interest @adviser

Sound as a pound.

My strategy... do what @dlavrov do, haha