How I am beating the crypto market by 10% per compound

in cryptocurrency •  8 years ago  (edited)

Last week I wrote my first steemit post ever. I described my journey to the crypto market. Today I intend on going much more in depth in my crypto investing strategy that has been beating the crypto market by 10% per compound. This is not investing advice. Just a written account of what I have done.

I built out my fund’s positions by researching for hours and allocating high weights to cryptos that I believed have a much higher potential than others, namely ETH, XMR, XRP, and DASH. Then with 150ish the smaller cap cryptos I allocated .03% of the fund. This basically pegged my fund to the market as a whole.

My next step was to try to learn about the life cycles of the “Pump and Dump’s” in this market. Each pump starts with a huge gain for some reason (almost always unforeseeable). Huge amounts of volume is traded in the first few hours and usually within 18 hours a pump hits its first ceiling. Usually it hits this ceiling (Within 5%) two more times over the next 32 hours as shown on the graph below. After this, usually the crypto drops back to about 1.5x its value before the pump.

Since I started trading, this has changed alot. But it still is a baseline that I use when I see a huge rise in value

Now that the explanation is there of the lifecycle is out of the way, here is the way we take advantage of it. First, research. I check reddit and other sources to see if I can find any major breakthrough or mass adoption of the crypto. If I can’t find anything, I will set a sell for 95% of the ceiling of the original pump. Within a day, the currency usually hits this mark and our sell order is filled. I make a mark to check the price over the coming days and reinvest when the crypto levels out.

This is an easy way to see massive gains over night. I have realized 10x gains on multiple cryptos doing this. Something you may want to try out. Reply with your ideas! I would love to hear a more efficient way to do this etc.

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I recently started following you, and your posts are awesome :) keep it up! @ronaldmcatee