Question for the traders: how do you manage a ROI target if BTC fluctuates?

bakujo0817

member

Activity: 313

Merit: 11

Quote from: cryptohoodz on May 30, 2018, 05:05:20 AM

Hi folks, I have a question for the traders.
Suppose you want to achieve a certain profit percentage in USD each month (at least 25% ROI).
How do you handle fluctuations in BTC value?

For example:
- you open a position in EOS at 0.0016 sats
- you think you can get on average 5% sats increase per day = 0.00008 sats (and open sell positions at the increase of sats)
- so per month its like 0.0004 sats = 25%
- however, BTC values fluctuate; so 0.0004 sats could be $3 today, but if BTC drops on average 7% per month (hypothetically), it's actually worth $2.79.
- would it make sense to adjust the target ROI for the average change in BTC per month? so instead of 25% ROI, we need 25%/97% = 27% ROI pm?

Let me know if I'm my assumptions/maths are incorrect or if you have other ideas.

Thank you!

when i trade altcoins i dont really care about what price of bitcoin im really increasing my bitcoin as long i earn btc on trading and then hold bitcoin long term.

gharjas2517

newbie

Activity: 114

Merit: 0

I don't care about the rise and fall of my bitcoin relative to the US dollar, because the price of bitcoin has been rising in the long run. My plan is that when my bitcoin holdings increase, I will sell some for profit. Trying to increase my bitcoin is the only way I invest in this market.

bitChipper

sr. member

Activity: 896

Merit: 290

Hard to trade altcoins with the goal of increasing $ amount, unless you don't care about the amount of bitcoin you have, I've never cared about dollar amount, only btc amount.

IMO when trading alts you should just be trying to pile up more bitcoin, we are all long on bitcoin anyways.

cryptohoodz

jr. member

Activity: 91

Merit: 5

Hi folks, I have a question for the traders.
Suppose you want to achieve a certain profit percentage in USD each month (at least 25% ROI).
How do you handle fluctuations in BTC value?

For example:
- you open a position in EOS at 0.0016 sats
- you think you can get on average 5% sats increase per day = 0.00008 sats (and open sell positions at the increase of sats)
- so per month its like 0.0004 sats = 25%
- however, BTC values fluctuate; so 0.0004 sats could be $3 today, but if BTC drops on average 7% per month (hypothetically), it's actually worth $2.79.
- would it make sense to adjust the target ROI for the average change in BTC per month? so instead of 25% ROI, we need 25%/97% = 27% ROI pm?

Let me know if I'm my assumptions/maths are incorrect or if you have other ideas.

Thank you!

Topic: Question for the traders: how do you manage a ROI target if BTC fluctuates? (Read 102 times)