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Topic: My spot Market trading stradegy what u think - page 2. (Read 277 times)

sr. member
Activity: 1022
Merit: 252
Consider combining other indicators or research techniques, such as technical analysis or sentiment analysis, into your approach to acquire greater insights into market patterns and potential entry and exit points.  Timing the market may be tough, and it is difficult to forecast when prices will rise following a dip. It is possible that the price could decline or remain static for a lengthy period of time, locking up your funds and perhaps resulting in lost chances elsewhere.
hero member
Activity: 1050
Merit: 681
DCA defeats this but only with BTC.

Altcoins? Trust me, I tried this in 2017. Down 50%? I bought. Then down another 50%? I bought more.

Never went up for 99% of coins, I lost so much precious BTC doing this.
You are almost correct here but if someone took a really bad entry on bitcoin like at the 2017 tops and start dcaing from there, you would blame bitcoin too for 3 years before you get to earn some profits. As bitcoin is getting older, the PA is getting slower too. Instead of DCAing from any price level, it would be better to understand some TA and take sensible entries and exits along the way.
legendary
Activity: 2716
Merit: 1859
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Whatever strategy you use will not be a problem, as long as you understand the risks.
But I am not familiar with the strategy you are using. I will usually do a Compound strategy for each purchase point when the price continues to fall until it reaches the capital limit that I use.

Let's say I started with $100 capital on the initial decline, when the price continued to fall through the next support I started to enter again with a total of twice the initial capital of $200 and so on until it reached $1000.

That will keep the capital stable and can make a profit even if it does not touch the initial purchase price. 
legendary
Activity: 2674
Merit: 1226
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I think this is just gambling, and it depends on what asset. Bitcoin? Great strategy, it always goes up eventually, but are you willing to hold for that?

More importantly, what if you miss the bull run and it keeps going up? Doesn't fall means you don't buy.

DCA defeats this but only with BTC.

Altcoins? Trust me, I tried this in 2017. Down 50%? I bought. Then down another 50%? I bought more.

Never went up for 99% of coins, I lost so much precious BTC doing this.
hero member
Activity: 1442
Merit: 775
Usually it's 10%-30% price fall in 24 hours.
Usually but not always true for all coins.

Quote
I have 1000$ capital for this If coin falling let's say 30% i buy with 300$ so Im safe.
You will be safe only if it is not a rug pull case or not case like Luna when developers enter a keyboard and mint massive new tokens to circulating supply.

Quote
If coin falling 10% then i'll buy 100$
The 24 hours % fall Will show me the % i can buy it from my total capital.
10% is a too small and it is risky if you think you are safe when entering any coin with -10% within 24 hours. Coins can drop in multiple days or weeks or months.

Quote
Once i buy it i'll wait for rebound and then i'll sell it for higher price.
Only possible if your entry price is good enough to give you chance to take profit.

I read all but did not see you write anything about weapons to protect your capital.

What are weapons in trading?
- Stop loss order
- Stop limit order

One of the Best Weapons in Trading
Stop limit order
sr. member
Activity: 1316
Merit: 356
Spot trading is safer than futures trading because you can keep your asset in account even if the price drops by 50% of your purchase price as long as you don't sell it, therefore it's quitely safe to invest large sums. However, your strategy, in my opinion, is a little riskier for me because you're relying on the percentage of the price decrease in 24 hours, so if the price of an asset drops 30%, you're trading 30% of your total funds. Here's the thing: From what I've seen in the market, following a significant drop in price, it will continue to fall. So it's not a good plan for me. This is just my opinion. Well, this is just my viewpoint, and if you believe your strategy is profitable, you can keep employing it. It's fine as long as you're profiting from your trading strategy.
legendary
Activity: 2506
Merit: 1394
This is quite risky though because in this case, you are basing on the percentage of dump or how much already is the losses then that's the time you enter, this is like buying the dip.
This is like you are "double down" your bet. The down side here is you will not know if there's more dip or none anymore. I suggest some high-mid market cap pairs.
jr. member
Activity: 138
Merit: 4
Quite a decent move you use to total power in a diversified way to grab more, it is a good and efficient averaging technique but I am curious about this strategy will for the market crash you are buying on every dip % so how you can figure out your profits in the short timeline because if the market is crashing then it takes time to recover itself, which clearly indicates your buying will be in pressure if you are playing in a single asset but the same strategy won't work on the multi assets.

Because to do that first you need to assign a total capital value for each and every asset then you can move forward with this strategy the collective results are gonna be satisfying with your Strategy in (Multi assets diversified portfolio).

So many Lowly posts in the trading section there are rarely some good things to talk about, most of the topics are based on recommendations and Tips which are all repeating nothing advance educational. Hoping for some good improvements on this section.

This stradegy works only with single asset. If you read all then you get the point how it works.
While Im buying asset with this stradegy on spot market i use just with 3% with 3x leverage short in case Market Will do bigger drop down.
Usually when i averaging dips down on spot Market i use small leverage short position to use it as hedge and anyone who been trading long enough knows it's smart way probably smartest ways to trade.
legendary
Activity: 966
Merit: 1042
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Quite a decent move you use to total power in a diversified way to grab more, it is a good and efficient averaging technique but I am curious about this strategy will for the market crash you are buying on every dip % so how you can figure out your profits in the short timeline because if the market is crashing then it takes time to recover itself, which clearly indicates your buying will be in pressure if you are playing in a single asset but the same strategy won't work on the multi assets.

Because to do that first you need to assign a total capital value for each and every asset then you can move forward with this strategy the collective results are gonna be satisfying with your Strategy in (Multi assets diversified portfolio).

So many Lowly posts in the trading section there are rarely some good things to talk about, most of the topics are based on recommendations and Tips which are all repeating nothing advance educational. Hoping for some good improvements on this section.
sr. member
Activity: 2366
Merit: 332
I think you seem to be careful and having a plan you believe in and that is good but you only mentioned about your selling plans to make profit. So how do you also make profit in the bull time. Do you leverage on the same strategy ?

However, trading high leverage or low leverage I think is also a risky strategy.
mk4
legendary
Activity: 2870
Merit: 3873
Paldo.io 🤖
Sounds super easy and simplistic but a huge chunk of the difficulty is actually picking the right cryptocurrency(or asset in general). A lot of assets don't even have a decent bounce especially if the asset is total utter crap.
hero member
Activity: 910
Merit: 507
This strategy is the primary beginner's strategy where the trader tries to minimize the risk, not going in at once is good and buying only small percentages of the total capital is also good but then you must know that as the risk loss is minimal so will your profits be small since it is based on your total investment.

Nothing goes for nothing so at that we must be prepared to face whatever becomes of our trading decision vs how we manage our risk, it depends on the trader whether or not his skills can contain the risk, some traders will go all in with the total amount of $1000 instead of dividing the amount into lower percentages of $100.
legendary
Activity: 1652
Merit: 1208
Gamble responsibly
Somethimes i use hedge with short btc or eth short with 3x leverage no SL but instead of SL I HAVE 5x Lev order added extra on top of the 3x leverage short position just higher then liq price in case the sudden drop of price.
So i will win or at least don't lose my loss is just small profit or brakeven.
I use to use 3x leverage bear/bull tokenz but since FTX case those kind of things can not be trusted anymore Also the NAV issue (balance reset not quite faovoreble 4 me )
This is called martingale strategy as it is gambling too. If you go for 1x and losing, you will go for higher leverage. It is tempting traders to use a higher leverage which makes this kind of strategy to be very dangerous. Averaging is better and make trading or investment to be less risky, unlike the martingale strategy that makes trading and investment to be riskier, making money loss to be more possible.
jr. member
Activity: 138
Merit: 4
Assuming you have $1000. You invest just $100. If you gain you take your profit. But if you lose, you invest more and more until you invest the $1000.

This is a good strategy and one of the averaging strategies. It makes the risk in your trading or investment to be minimal than to use the $1000 at ones. But also the profit can be minimal.

But it is important you have a better planning of when to invest more and more for it not to be done at the wrong time which may lead to significant loss.

Somethimes i use hedge with short btc or eth short with 3x leverage no SL but instead of SL I HAVE 5x Lev order added extra on top of the 3x leverage short position just higher then liq price in case the sudden drop of price.
So i will win or at least don't lose my loss is just small profit or brakeven.
I use to use 3x leverage bear/bull tokenz but since FTX case those kind of things can not be trusted anymore Also the NAV issue (balance reset not quite faovoreble 4 me )
legendary
Activity: 1652
Merit: 1208
Gamble responsibly
Assuming you have $1000. You invest just $100. If you gain you take your profit. But if you lose, you invest more and more until you invest the $1000.

This is a good strategy and one of the averaging strategies. It makes the risk in your trading or investment to be minimal than to use the $1000 at ones. But also the profit can be minimal.

But it is important you have a better planning of when to invest more and more for it not to be done at the wrong time which may lead to significant loss.
jr. member
Activity: 138
Merit: 4
My spot market trading stradegy.

First we need to understood that coin the assets can fall down max of 100% and Even this one is very high %
Usually it's 10%-30% price fall in 24 hours.
Here is the example what i do:
I have 1000$ capital for this If coin falling let's say 30% i buy with 300$ so Im safe.
If coin falling 10% then i'll buy 100$
The 24 hours % fall Will show me the % i can buy it from my total capital.
Once i buy it i'll wait for rebound and then i'll sell it for higher price.
If i buy with Same % of my capital then i Will have capital left enough of my total money to buy up all 100% price fall.
I hope you like it and it Will help you
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