Topic: How about this trading strategy? (Read 1283 times)
This strategy does not work recently with run away market. In a few weeks, if the price is within a range, use this method.
better to not sell in a pump like this, or you will be left behind, now it's only time to buy, and reduce your buy order after a certain % of increase, maybe after the rounded big number like 300, 400, 500 etc...
True, a month ago this strategy would have been pretty good actually considering the price was always swinging between 200-220 each day. Im not doing anything right now, im waiting for some stability which probably will happen in a week or so.
better to not sell in a pump like this, or you will be left behind, now it's only time to buy, and reduce your buy order after a certain % of increase, maybe after the rounded big number like 300, 400, 500 etc...
You can try this on margin trading on bitfinex. Put your investment sum to ride the bull wave then use it as collateral to open margin position using this strategy. Although margin trading is very risky so only invest amounts you can lose
Bull until it's bear....if only I could guestimate the top =/
This strategy works in range trading. If the market is in the upper trend, you will earn little money. We are in a big bull market, maybe not suitable.
This trading strategy works if you have a deep pocket. I do this once in a while with the little bitcoin I have, as it is quite profitable at the right time.
Use at least 0,5 BTC
1) Check the current BTC/usd price
2) Put a buying order about 2 dollars below current price for 0,02 BTC (i.e. if price is 280 $ put a buying order at 278$)
3) If you manage to buy, put a sell order at least 2$ above your buying price (if you bought at 278$ put a buying order at 280$). When sell order fills, go to step 2.
4) If price keeps raising and your buying order did not fill (wait some hours/days whatever), cancel your buying order and go to step 2.
5) If your buying order fills, but price keeps going down, wait some hours/days and go to step 2 again (i.e. Buy more).
I know it depends on the time you use for waits, and you are not getting the full benefit if BTC keeps going up and up. Earnings might be slow, but pretty safe in my opinion (disaster would be only if BTC goes very low and you are caught with lots of BTC, but you could still hold them).
Opinions?
1) Check the current BTC/usd price
2) Put a buying order about 2 dollars below current price for 0,02 BTC (i.e. if price is 280 $ put a buying order at 278$)
3) If you manage to buy, put a sell order at least 2$ above your buying price (if you bought at 278$ put a buying order at 280$). When sell order fills, go to step 2.
4) If price keeps raising and your buying order did not fill (wait some hours/days whatever), cancel your buying order and go to step 2.
5) If your buying order fills, but price keeps going down, wait some hours/days and go to step 2 again (i.e. Buy more).
I know it depends on the time you use for waits, and you are not getting the full benefit if BTC keeps going up and up. Earnings might be slow, but pretty safe in my opinion (disaster would be only if BTC goes very low and you are caught with lots of BTC, but you could still hold them).
Opinions?
Here's a simple and effective strategy that works - gains are small, but you will always gain in the long run:
1) Pick an asset mix that you are very comfortable with (as it's important to keep this fixed) - larger the mix, the smaller the gain - more stable your income;and
2) Rebalance.
That's it. Simple - when you reblance, you're always buying low and selling high - effectively removing emotion.
Tried it yesterday using 0.02 and 0.01 amounts to buy/sell and more than 2$ jumps (sometimes 4 or more dollars jumps). It worked well, but did not earned that much (about 50-60 cents in Bitcoin I guess 
).
Considering I only had about 0.05 BTC invested at the same time, does not seem to bad, but neither too good.
).Considering I only had about 0.05 BTC invested at the same time, does not seem to bad, but neither too good.
Investing more bitcoins for this method contains more risk and if you loose you will loose more than these cents.
But also the earning would be greater but always remember that even if you don't earn anything try to cover the exchanges fee.
Tried it yesterday using 0.02 and 0.01 amounts to buy/sell and more than 2$ jumps (sometimes 4 or more dollars jumps). It worked well, but did not earned that much (about 50-60 cents in Bitcoin I guess ).
Considering I only had about 0.05 BTC invested at the same time, does not seem to bad, but neither too good.
).Considering I only had about 0.05 BTC invested at the same time, does not seem to bad, but neither too good.
Because you are using 0.02 btc which is not feasible for this strategy, he said you needed at least 0.5 but the more money you use the better and although you won some money you can lose it extremely easy with one of bitcoin price swings that happens really at least once a month
Tried it yesterday using 0.02 and 0.01 amounts to buy/sell and more than 2$ jumps (sometimes 4 or more dollars jumps). It worked well, but did not earned that much (about 50-60 cents in Bitcoin I guess ).
Considering I only had about 0.05 BTC invested at the same time, does not seem to bad, but neither too good.
).Considering I only had about 0.05 BTC invested at the same time, does not seem to bad, but neither too good.
This doesn't seems so bad of a strategy I might give it a go. 
I think in a relatively stable market, this will work. If Bitcoin price suddenly changes in a bull run for example, your buy orders will not get filled and you are probably better off buying and holding.
Regarding the 2$ below current price, how did you arrive at that number?
Regarding the 2$ below current price, how did you arrive at that number?
If buy order don't fill up OK but after buying if prices sudden fall very badly and don't recover for years then that will be the worst case. Like when prices was 1000+ and after fall we no way near to those prices after the fall. So I suggest for this method you should play with only your cash do not ever borrow money for this strategy, it may put you in deep trouble.
It doesn't seem better than any other strategy really, it will still depend on your luck with bitcoins and your winnings are really low and as some people said bitcoin is so volatile that it's probably worse doing it with bitcoins than any other currency. You could try it and tell us your results but i doubt it will work.
I think in a relatively stable market, this will work. If Bitcoin price suddenly changes in a bull run for example, your buy orders will not get filled and you are probably better off buying and holding.
Regarding the 2$ below current price, how did you arrive at that number?
Regarding the 2$ below current price, how did you arrive at that number?
Oh, the 2$ limit is only an example. Could be 3$, 1$ or 5. Depends on the individual, fees of the exchange used, etc. It is only an estimate.
As for the bull run you mention, you are totally right. In fact it just happened me today LOL
Use at least 0,5 BTC
1) Check the current BTC/usd price
2) Put a buying order about 2 dollars below current price for 0,02 BTC (i.e. if price is 280 $ put a buying order at 278$)
3) If you manage to buy, put a sell order at least 2$ above your buying price (if you bought at 278$ put a buying order at 280$). When sell order fills, go to step 2.
4) If price keeps raising and your buying order did not fill (wait some hours/days whatever), cancel your buying order and go to step 2.
5) If your buying order fills, but price keeps going down, wait some hours/days and go to step 2 again (i.e. Buy more).
I know it depends on the time you use for waits, and you are not getting the full benefit if BTC keeps going up and up. Earnings might be slow, but pretty safe in my opinion (disaster would be only if BTC goes very low and you are caught with lots of BTC, but you could still hold them).
Opinions?
1) Check the current BTC/usd price
2) Put a buying order about 2 dollars below current price for 0,02 BTC (i.e. if price is 280 $ put a buying order at 278$)
3) If you manage to buy, put a sell order at least 2$ above your buying price (if you bought at 278$ put a buying order at 280$). When sell order fills, go to step 2.
4) If price keeps raising and your buying order did not fill (wait some hours/days whatever), cancel your buying order and go to step 2.
5) If your buying order fills, but price keeps going down, wait some hours/days and go to step 2 again (i.e. Buy more).
I know it depends on the time you use for waits, and you are not getting the full benefit if BTC keeps going up and up. Earnings might be slow, but pretty safe in my opinion (disaster would be only if BTC goes very low and you are caught with lots of BTC, but you could still hold them).
Opinions?
This is what traders already do! Companies like Coinbase that are reliable can put a 1% fee on their purchases of bitcoins and gain more money.
I think in a relatively stable market, this will work. If Bitcoin price suddenly changes in a bull run for example, your buy orders will not get filled and you are probably better off buying and holding.
Regarding the 2$ below current price, how did you arrive at that number?
Regarding the 2$ below current price, how did you arrive at that number?
The success of that strategy will in large depend on how deep your pockets are, position sizes etc..
Most markets move in cycles and in each cycle you will find smaller cycles so most markets are moving up and down the whole time. With your strategy you will be able to capture these moves especially so in a ranging market. The problem however comes in when you hit a strong trend as your strategy is essentially a counter trade strategy i.e. buying as markets go down and selling as it goes up with the 'hope' that you catch a top or bottom and by doing so ride out the reversal and or start of a new trend.
If you hit a strong trend you might end up entering several position and depending on your reserves you might get to a point where you will have to liquidate some positions and or lose your full balance. That's why I say it will depend on how deep your pockets are. If they are deep enough and you keep your positions in line with the balance and you plan for the worse then you should be able to ride out most of the swings.
When it comes to trading and strategies there is a saying that everything works until it does not meaning that every kind of strategy will work at one or other time as it will be in 'sync' with market movements at that particular point in time. No strategy however will work all of the time.
Most markets move in cycles and in each cycle you will find smaller cycles so most markets are moving up and down the whole time. With your strategy you will be able to capture these moves especially so in a ranging market. The problem however comes in when you hit a strong trend as your strategy is essentially a counter trade strategy i.e. buying as markets go down and selling as it goes up with the 'hope' that you catch a top or bottom and by doing so ride out the reversal and or start of a new trend.
If you hit a strong trend you might end up entering several position and depending on your reserves you might get to a point where you will have to liquidate some positions and or lose your full balance. That's why I say it will depend on how deep your pockets are. If they are deep enough and you keep your positions in line with the balance and you plan for the worse then you should be able to ride out most of the swings.
When it comes to trading and strategies there is a saying that everything works until it does not meaning that every kind of strategy will work at one or other time as it will be in 'sync' with market movements at that particular point in time. No strategy however will work all of the time.
This is exactly what ping-pong buy and sells are all about, as far as I know. You can automate this in autotrader tools such as C.A.T. available here in the forum.
Use at least 0,5 BTC
1) Check the current BTC/usd price
2) Put a buying order about 2 dollars below current price for 0,02 BTC (i.e. if price is 280 $ put a buying order at 278$)
3) If you manage to buy, put a sell order at least 2$ above your buying price (if you bought at 278$ put a buying order at 280$). When sell order fills, go to step 2.
4) If price keeps raising and your buying order did not fill (wait some hours/days whatever), cancel your buying order and go to step 2.
5) If your buying order fills, but price keeps going down, wait some hours/days and go to step 2 again (i.e. Buy more).
I know it depends on the time you use for waits, and you are not getting the full benefit if BTC keeps going up and up. Earnings might be slow, but pretty safe in my opinion (disaster would be only if BTC goes very low and you are caught with lots of BTC, but you could still hold them).
Opinions?
1) Check the current BTC/usd price
2) Put a buying order about 2 dollars below current price for 0,02 BTC (i.e. if price is 280 $ put a buying order at 278$)
3) If you manage to buy, put a sell order at least 2$ above your buying price (if you bought at 278$ put a buying order at 280$). When sell order fills, go to step 2.
4) If price keeps raising and your buying order did not fill (wait some hours/days whatever), cancel your buying order and go to step 2.
5) If your buying order fills, but price keeps going down, wait some hours/days and go to step 2 again (i.e. Buy more).
I know it depends on the time you use for waits, and you are not getting the full benefit if BTC keeps going up and up. Earnings might be slow, but pretty safe in my opinion (disaster would be only if BTC goes very low and you are caught with lots of BTC, but you could still hold them).
Opinions?
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