The grue/qo method - page 2. | Bitcointalksearch.org

waveaddict

hero member

Activity: 532

Merit: 500

this is the exact reason why 90%+ of people that play the market lose everything. Think about it...if it was this easy to make money then everybody would be rich. The hard truth is that you must have an opinion of market direction, the technical backgound to make up a 'good' opinion in the first place, and the discipline to follow your method when trading while keeping emotions out.

Quote from: ?? on ??

Quote from: qo on February 26, 2012, 09:16:00 PM

Place buy orders on Mt.Gox @ 15% or more below current price. Ladder the volume higher with each percentage increase e.g.:

50 BTC @ 15% below current price
70 BTC @ 20 % below current price
90 BTC @ 25 % below current price
etc.

At some point they'll be hit (or not).

If they're hit, chances are the price will go up in the next several days.

Sell when the price exceeds your price by some small amount e.g. 5% (which isn't a bad return in the real world). If the price continues down, your ladders will be hit, lowering your average price.

If your orders aren't hit. No problem. Cancel and start over.

This has worked consistently for me so far.

IMHO, it's low stress and you don't have to watch the market at all. Set alarms for each of your order prices in Bitcoin Ticker on the iPhone, or one of the other BTC price apps that support alarms. With this method, you don't have to bother with charts, technical analysis, etc. It does require patience though and might not result in high returns that other methods promise.

Thoughts?

Sounds a lot like http://en.wikipedia.org/wiki/Martingale_%28betting_system%29

Yes, just like the martingale method, your method will work 9 times out of 10, hence the consistency you observe. But, that single 10% loser will be really big, wiping out any profit, on average.

This method's a way of making your profits look consistent when they really aren't, by taking increasingly riskier bets.

qo

newbie

Activity: 26

Merit: 0

Quote from: Eveofwar on February 26, 2012, 10:53:22 PM

Quote from: qo on February 26, 2012, 10:43:55 PM

Haha. I'd rename the thread to "The grue method" if the forum supported it. As it is, I've retitled this post :-)

Re title your first post Wink

Thanks! And done.

Eveofwar

sr. member

Activity: 406

Merit: 250

Quote from: qo on February 26, 2012, 10:43:55 PM

Quote from: grue on February 26, 2012, 10:36:33 PM

You stole my strategy that i worked on for 3 months straight! Angry

Haha. I'd rename the thread to "The grue method" if the forum supported it. As it is, I've retitled this post :-)

Re title your first post Wink

qo

newbie

Activity: 26

Merit: 0

Quote from: grue on February 26, 2012, 10:36:33 PM

You stole my strategy that i worked on for 3 months straight! Angry

Haha. I'd rename the thread to "The grue method" if the forum supported it. As it is, I've retitled this post :-)

grue

legendary

Activity: 2058

Merit: 1431

You stole my strategy that i worked on for 3 months straight! Angry

qo

newbie

Activity: 26

Merit: 0

Quote from: teflone on February 26, 2012, 09:30:08 PM

what happens when it goes down and dosent come up..?

So far, that's not happened. There's usually a bounce after every major decline. But, if it does then, yeah, I'm screwed Grin

But, the point of laddering down is to soften the blow of such events by lowering your average price as the market declines.

Part of my rational is that I got into bitcoin by catching the falling knife at around 18 or so. Against everything I'd ever learned, I bought more and more on the way down until my average price was around 3.50ish. Then sold around 4 in the last rally to 7 (missing a substantial part of that rally). I suppose the other option would be to sell, lick your wounds, limit your loss, and remain solvent for the next trade. Some folks have the demeanor for that, but it's just not a part of my mindset Cheesy

waveaddict

hero member

Activity: 532

Merit: 500

or...you could just succumb to my charting service and subscribe already Wink

Quote from: qo on February 26, 2012, 09:16:00 PM

Place buy orders on Mt.Gox @ 15% or more below current price. Ladder the volume higher with each percentage increase e.g.:

50 BTC @ 15% below current price
70 BTC @ 20 % below current price
90 BTC @ 25 % below current price
etc.

At some point they'll be hit (or not).

If they're hit, chances are the price will go up in the next several days.

Sell when the price exceeds your price by some small amount e.g. 5% (which isn't a bad return in the real world). If the price continues down, your ladders will be hit, lowering your average price.

If your orders aren't hit. No problem. Cancel and start over.

This has worked consistently for me so far.

IMHO, it's low stress and you don't have to watch the market at all. Set alarms for each of your order prices in Bitcoin Ticker on the iPhone, or one of the other BTC price apps that support alarms. With this method, you don't have to bother with charts, technical analysis, etc. It does require patience though and might not result in high returns that other methods promise.

Thoughts?

ineededausername

hero member

Activity: 784

Merit: 1000

bitcoin hundred-aire

Nobody can say the Bitcoin market is trendless. Trends are very powerful in the Bitcoin market, so contrarian strategies like this won't work... you would've been buying from June to November, and perhaps you would've run out of money by the time your average price was $5.

copumpkin

donator

Activity: 266

Merit: 252

I'm actually a pineapple

Quote from: teflone on February 26, 2012, 09:30:08 PM

what happens when it goes down and dosent come up..?

It's the usual momentum vs. contrarian divide. Contrarian strategies work for mostly stationary markets and momentum trading works for big trends. There's no single good strategy, ever, and you need to have additional (ideally, almost unbreakable) policies in place for dealing with (i.e., closing out and cutting losses) movements that go too far outside of your expectations.

If someone had stuck to this method blindly when we were deflating after June, they'd be pretty sad by now.

teflone

hero member

Activity: 770

Merit: 500

You're fat, because you dont have any pics on FB

what happens when it goes down and dosent come up..?

qo

newbie

Activity: 26

Merit: 0

Place buy orders on Mt.Gox @ 15% or more below current price. Ladder the volume higher with each percentage increase e.g.:

50 BTC @ 15% below current price
70 BTC @ 20 % below current price
90 BTC @ 25 % below current price
etc.

At some point they'll be hit (or not).

If they're hit, chances are the price will go up in the next several days.

Sell when the price exceeds your price by some small amount e.g. 5% (which isn't a bad return in the real world). If the price continues down, your ladders will be hit, lowering your average price.

If your orders aren't hit. No problem. Cancel and start over.

This has worked consistently for me so far.

IMHO, it's low stress and you don't have to watch the market at all. Set alarms for each of your order prices in Bitcoin Ticker on the iPhone, or one of the other BTC price apps that support alarms. With this method, you don't have to bother with charts, technical analysis, etc. It does require patience though and might not result in high returns that other methods promise.

Thoughts?

Topic: The grue/qo method - page 2. (Read 2754 times)