Crypto trading strategy that is foolproof along with some patterns to be aware of

[BackInTheGame78]

I have come up with a strategy that is pretty much foolproof and have also noticed numerous patterns along the way.

First the strategy. I doubt I am the first person who came up with this, but I didn't read this anywhere, it just makes sense to me based on how I think.

It basically is a buy-monitor-sell-rebuy strategy. I will give a real world example I just did so you can understand why it is nearly foolproof.

I currently have some money invested in some other items so I had $711 to use. I looked at Origin which had been trading in the 1.40s yesterday and was sitting at 1.165. So I bought 611 shares. Then I monitored it for the next 15-20 minutes. It went up briefly but then started to dip. I sold it at 1.167 and with fees actually lost some money. So at this point the $711 I had was actually $706 or something.

I waited until it dipped down to 113.1 and then rebought and ended up with 623 shares. So even though I lost money, I gained shares. And this is the shift in thinking most people can't get past. It is entirely acceptable and more important very profitable to sell things at a loss when a dip is occurring and then rebuy more shares with less money later. Price point for selling is 1.47 so those extra shares will make me .34 apiece or about $4 more. This is a small example but when you apply this to larger buys, you can end up with hundreds or even thousands of extra shares which will make you hundreds or thousands of extra dollars with almost 0 risk. You just keep monitoring it and rebuying when you can get more shares.

Now to patterns I have noticed.

1) There are typically 2 times the market dips during the day. Usually within 30 minutes in either direction. The first is 9am and the second is 10pm. I am assuming this correlates to US waking up to take profits and Asia waking up to take profits. Time buys around these dips with my strategy above and it's nearly guaranteed you will make money. There is also usually a dip around 6:30 or 7am as well, which is probably the early risers preceding the other US people.

2) Typically there will be a few cryptos that are lagging behind in terms of gains when the market is undergoing a big rally. I will give some examples. After the market crashed Sunday, Eth/Bitcoin started recovering nicely. Into much of the day Tuesday and yesterday while most followed Eth(and Bitcoin) up about 20-30% in the 24 hour change metrics, Skale(SKL), Decentraland(MANA) and Uniswap(UNI) lagged behind with all of them in the single digits for gains.

Within a few hours of me noticing this all of them skyrocketed to be in line with the market. Skale went from low .30s on Tuesday to almost .68 yesterday, Decentraland went from mid .70s to 1.01 yesterday, and Uniswap went from $25 to almost $30 yesterday. Look for the laggers when the market rallies and buy them. You will be greatly rewarded because they will catch up even if it's on a delay. The one caveat is do not do this with ones that are trading near their all time high already.

3) Do not set any buys overnight, you will almost always buy too high due to the before noted dips and inability to use the method I talked about above.

4) Identify a price point you want to sell at that is realistic and then set the limit sell and stick to it. I lost about 7K this week by setting them, then selling too quickly when the market went up. Patience is key. By realistic, I am talking about within 2-3 days. Plenty of movement in that time up and down to make a small fortune when done right.

I have some others that I can't remember right now but I will add them later when I think of them.

 

[Lookatu]

You aren't taking into account the day trading rules if you're not playing on margins or have the minimum $25k capital needed to overcome the day trading restrictions. This only applies to stocks but Crypto is nice since it's 24/7 and has no day trading restrictions.

If you've been in it long enough(which you haven't), you'll see that eventually it's not foolproof and you'll lose some and may even out at the end. Only a small percentage actually get ahead that doesn't do it for a living.

 

[BackInTheGame78]

You aren't taking into account the day trading rules if you're not playing on margins or have the minimum $25k capital needed to overcome the day trading restrictions. This only applies to stocks but Crypto is nice since it's 24/7 and has no day trading restrictions.

If you've been in it long enough(which you haven't), you'll see that eventually it's not foolproof and you'll lose some and may even out at the end. Only a small percentage actually get ahead that doesn't do it for a living.

Yeah I am not talking stocks, only crypto.

How is it not? It's only going to go down so much before it goes back up. It is common sense. People lose money because they panic. I don't. I wait patiently if I am under water and it will eventually come back up. And while it's way down I am buying more not selling.

Case in point, I put a 5K stop limit buy order in for Skale at 48.5 cents prior to going to bed when it's was trading at 55 or 56 before it crashed 2 Sundays ago the first time. When I woke up it was down to 40 cents. Which is why I will only put in sells now overnight on auto.

It ended up crashing down to 20 cents at one point again this past Sunday. Did I panic? No. I waited. Skale hit almost 68 cents yesterday and I ended up selling at 58 cents and made over 1K in profit.

The lesson. Never panic. Especially with Crypto. It's coming right back.

 

[Bible_Belt]

I wait patiently if I am under water and it will eventually come back up. And while it's way down I am buying more not selling.

The problem is that one bad trade can wipe you out. The risk reward ratio is an important consideration. Your method might work 99% of the time, but it doesn't matter if that 1% of trades destroys you.

 

[BackInTheGame78]

The problem is that one bad trade can wipe you out. The risk reward ratio is an important consideration. Your method might work 99% of the time, but it doesn't matter if that 1% of trades destroys you.

No, you only devote no more than a third of what you are playing with in a single trade. I operate under a strict set of rules I will not deviate from. I am very analytical. I am a software engineer. I am not one of these idiots who just plays around and throws money in without knowing anything about what is going on.

The biggest rule in any type of investing to know is that most people are complete dumbasses and do it backwards. They buy high and sell at a loss. You take advantage of these people ruthlessly during those times. That's when fortunes are made.

 

[Bible_Belt]

No, you only devote no more than a third of what you are playing with in a single trade. I operate under a strict set of rules I will not deviate from.

Good. When you trade with other people's money, the rules get a lot more strict. I was not allowed to hold losing positions very long and adding to them was even worse. My daily shutdown loss limit was a tiny percentage of my buying power. This is all with stocks, but the risk management principles are the same.

 

[BackInTheGame78]

Good. When you trade with other people's money, the rules get a lot more strict. I was not allowed to hold losing positions very long and adding to them was even worse. My daily shutdown loss limit was a tiny percentage of my buying power. This is all with stocks, but the risk management principles are the same.

I will never trade on margin, only with my own money. That way there are no limits to how long I can wait haha

Crypto as a whole is going to explode upwards over the next 5 years. A lot of new millionaires are going to be made and I intend to be one of them.

 

[Bible_Belt]

I will never trade on margin, only with my own money. That way there are no limits to how long I can wait haha

Do people buy crypto on margin? Good lord I hope not. I was talking about a proprietary gig, 100% opm.

 

[BackInTheGame78]

Do people buy crypto on margin? Good lord I hope not. I was talking about a proprietary gig, 100% opm.

Oh yeah. It's sometimes the cause of huge drops because they can make as much or more at times when it tanks

 

[Lookatu]

How is it not? It's only going to go down so much before it goes back up. It is common sense. People lose money because they panic. I don't. I wait patiently if I am under water and it will eventually come back up. And while it's way down I am buying more not selling.

Everyone just starting out thinks like this. Once you've been in the game awhile, you know better. Yes, things generally will come back but it's a matter of opportunity costs. Some elect to move on while others will hold it for many years. Just look at Amazon when it was down 90% at some point.

And not everything comes back up. Some things will go bankrupt or get delisted.

You make it sound easy just like others that have started out(I was the same). If it was that easy, everyone would be rich. Don't be like my cousin though and quit your day job. He's been doing it for 15 years but through dumb luck, he used to be able to live off his dividends. After having a family though, it wasn't enough.

Report back in a couple years and I'd be curious if you still have the same mindset.

 

[BackInTheGame78]

Everyone just starting out thinks like this. Once you've been in the game awhile, you know better. Yes, things generally will come back but it's a matter of opportunity costs. Some elect to move on while others will hold it for many years. Just look at Amazon when it was down 90% at some point.

And not everything comes back up. Some things will go bankrupt or get delisted.

You make it sound easy just like others that have started out(I was the same). If it was that easy, everyone would be rich. Don't be like my cousin though and quit your day job. He's been doing it for 15 years but through dumb luck, he used to be able to live off his dividends. After having a family though, it wasn't enough.

Report back in a couple years and I'd be curious if you still have the same mindset.

I'll report back by Dec 31st with a list of every trade I made and my profit amount.

Nah, not even close to being true. I have an exceptionally good skillset for this and excel at seeing patterns and then exploiting them. And crypto has a LOT of patterns you see over and over again.

It isn't easy to a lot of people, but it is easy to me. I have made a lot of dumb mistakes that I will learn from but already have made a sizable amount of money from it.

In my entire life I have never lost when I have bet on myself and I don't intend to start now.

 

[Lookatu]

I'll report back by Dec 31st with a list of every trade I made and my profit amount.

Don't forget to figure in Uncle Sam's cut too.

 

[BackInTheGame78]

Don't forget to figure in Uncle Sam's cut too.

Yeah I expect that to be a lot.

 

[Lookatu]

Yeah I expect that to be a lot.

Thanks to Biden's new policies.

 

[King Lion]

I have come up with a strategy that is pretty much foolproof and have also noticed numerous patterns along the way.

First the strategy. I doubt I am the first person who came up with this, but I didn't read this anywhere, it just makes sense to me based on how I think.

It basically is a buy-monitor-sell-rebuy strategy. I will give a real world example I just did so you can understand why it is nearly foolproof.

I currently have some money invested in some other items so I had $711 to use. I looked at Origin which had been trading in the 1.40s yesterday and was sitting at 1.165. So I bought 611 shares. Then I monitored it for the next 15-20 minutes. It went up briefly but then started to dip. I sold it at 1.167 and with fees actually lost some money. So at this point the $711 I had was actually $706 or something.

I waited until it dipped down to 113.1 and then rebought and ended up with 623 shares. So even though I lost money, I gained shares. And this is the shift in thinking most people can't get past. It is entirely acceptable and more important very profitable to sell things at a loss when a dip is occurring and then rebuy more shares with less money later. Price point for selling is 1.47 so those extra shares will make me .34 apiece or about $4 more. This is a small example but when you apply this to larger buys, you can end up with hundreds or even thousands of extra shares which will make you hundreds or thousands of extra dollars with almost 0 risk. You just keep monitoring it and rebuying when you can get more shares.

Now to patterns I have noticed.

1) There are typically 2 times the market dips during the day. Usually within 30 minutes in either direction. The first is 9am and the second is 10pm. I am assuming this correlates to US waking up to take profits and Asia waking up to take profits. Time buys around these dips with my strategy above and it's nearly guaranteed you will make money. There is also usually a dip around 6:30 or 7am as well, which is probably the early risers preceding the other US people.

2) Typically there will be a few cryptos that are lagging behind in terms of gains when the market is undergoing a big rally. I will give some examples. After the market crashed Sunday, Eth/Bitcoin started recovering nicely. Into much of the day Tuesday and yesterday while most followed Eth(and Bitcoin) up about 20-30% in the 24 hour change metrics, Skale(SKL), Decentraland(MANA) and Uniswap(UNI) lagged behind with all of them in the single digits for gains.

Within a few hours of me noticing this all of them skyrocketed to be in line with the market. Skale went from low .30s on Tuesday to almost .68 yesterday, Decentraland went from mid .70s to 1.01 yesterday, and Uniswap went from $25 to almost $30 yesterday. Look for the laggers when the market rallies and buy them. You will be greatly rewarded because they will catch up even if it's on a delay. The one caveat is do not do this with ones that are trading near their all time high already.

3) Do not set any buys overnight, you will almost always buy too high due to the before noted dips and inability to use the method I talked about above.

4) Identify a price point you want to sell at that is realistic and then set the limit sell and stick to it. I lost about 7K this week by setting them, then selling too quickly when the market went up. Patience is key. By realistic, I am talking about within 2-3 days. Plenty of movement in that time up and down to make a small fortune when done right.

I have some others that I can't remember right now but I will add them later when I think of them.

Thanks for sharing!

 

[jaygreenb]

Do people buy crypto on margin? Good lord I hope not. I was talking about a proprietary gig, 100% opm.

you can get up to 150x leverage, it is insane. Part of the reason we see such wild swings is whales liquidating everyone

 

[jaygreenb]

I have come up with a strategy that is pretty much foolproof and have also noticed numerous patterns along the way.

First the strategy. I doubt I am the first person who came up with this, but I didn't read this anywhere, it just makes sense to me based on how I think.

It basically is a buy-monitor-sell-rebuy strategy. I will give a real world example I just did so you can understand why it is nearly foolproof.

I currently have some money invested in some other items so I had $711 to use. I looked at Origin which had been trading in the 1.40s yesterday and was sitting at 1.165. So I bought 611 shares. Then I monitored it for the next 15-20 minutes. It went up briefly but then started to dip. I sold it at 1.167 and with fees actually lost some money. So at this point the $711 I had was actually $706 or something.

I waited until it dipped down to 113.1 and then rebought and ended up with 623 shares. So even though I lost money, I gained shares. And this is the shift in thinking most people can't get past. It is entirely acceptable and more important very profitable to sell things at a loss when a dip is occurring and then rebuy more shares with less money later. Price point for selling is 1.47 so those extra shares will make me .34 apiece or about $4 more. This is a small example but when you apply this to larger buys, you can end up with hundreds or even thousands of extra shares which will make you hundreds or thousands of extra dollars with almost 0 risk. You just keep monitoring it and rebuying when you can get more shares.

Now to patterns I have noticed.

1) There are typically 2 times the market dips during the day. Usually within 30 minutes in either direction. The first is 9am and the second is 10pm. I am assuming this correlates to US waking up to take profits and Asia waking up to take profits. Time buys around these dips with my strategy above and it's nearly guaranteed you will make money. There is also usually a dip around 6:30 or 7am as well, which is probably the early risers preceding the other US people.

2) Typically there will be a few cryptos that are lagging behind in terms of gains when the market is undergoing a big rally. I will give some examples. After the market crashed Sunday, Eth/Bitcoin started recovering nicely. Into much of the day Tuesday and yesterday while most followed Eth(and Bitcoin) up about 20-30% in the 24 hour change metrics, Skale(SKL), Decentraland(MANA) and Uniswap(UNI) lagged behind with all of them in the single digits for gains.

Within a few hours of me noticing this all of them skyrocketed to be in line with the market. Skale went from low .30s on Tuesday to almost .68 yesterday, Decentraland went from mid .70s to 1.01 yesterday, and Uniswap went from $25 to almost $30 yesterday. Look for the laggers when the market rallies and buy them. You will be greatly rewarded because they will catch up even if it's on a delay. The one caveat is do not do this with ones that are trading near their all time high already.

3) Do not set any buys overnight, you will almost always buy too high due to the before noted dips and inability to use the method I talked about above.

4) Identify a price point you want to sell at that is realistic and then set the limit sell and stick to it. I lost about 7K this week by setting them, then selling too quickly when the market went up. Patience is key. By realistic, I am talking about within 2-3 days. Plenty of movement in that time up and down to make a small fortune when done right.

I have some others that I can't remember right now but I will add them later when I think of them.

Just something to think about... Look at what your total value is not in dollars but in BTC, any tracking app can show btc or usd. If you are not increasing your BTC value by a minimum of 25%( plus any state taxes) you are actually losing between taxes and opportunity cost of not just buying btc. I hope this works out for you, I did a lot of this type of stuff last cycle, and in the end would of just been better off buying bitcoin and holding. One other thing to take into consideration is when the market turns at some point for an extended bear market, alt coins often lose 95%+

 

[jaygreenb]

Yeah I am not talking stocks, only crypto.

How is it not? It's only going to go down so much before it goes back up. It is common sense. People lose money because they panic. I don't. I wait patiently if I am under water and it will eventually come back up. And while it's way down I am buying more not selling.

Case in point, I put a 5K stop limit buy order in for Skale at 48.5 cents prior to going to bed when it's was trading at 55 or 56 before it crashed 2 Sundays ago the first time. When I woke up it was down to 40 cents. Which is why I will only put in sells now overnight on auto.

It ended up crashing down to 20 cents at one point again this past Sunday. Did I panic? No. I waited. Skale hit almost 68 cents yesterday and I ended up selling at 58 cents and made over 1K in profit.

The lesson. Never panic. Especially with Crypto. It's coming right back.

It does not always come right back though, at some point there is always an extended bear market. That presumption caused most people, including myself to ride down a 95% loss on alts in 2018. When it turns, it turns

 

[Lookatu]

One other thing to take into consideration is when the market turns at some point for an extended bear market, alt coins often lose 95%+

This

 

[BackInTheGame78]

Just something to think about... Look at what your total value is not in dollars but in BTC, any tracking app can show btc or usd. If you are not increasing your BTC value by a minimum of 25%( plus any state taxes) you are actually losing between taxes and opportunity cost of not just buying btc. I hope this works out for you, I did a lot of this type of stuff last cycle, and in the end would of just been better off buying bitcoin and holding. One other thing to take into consideration is when the market turns at some point for an extended bear market, alt coins often lose 95%+

Even within an extended crash there are buying/selling opportunities. Also, if you are aware the market is crashing and it is a true crash, why didn't you sell what you had at the beginning of the crash and then wait for it to bottom out and then rebuy at the much lower price?

If you lose 10% and then rebuy at an 85% discount you are getting a huge increase in shares. Again, the amount of shares you have with the same money is what matters not the dollars involved in the intermediary period.

There are very clear indicators that a crash is underway. Set alerts, check it often, whatever you need to do. But if it's because you aren't paying attention while it's crashing that's inexcusable. That's simply not taking it seriously enough. I don't care if it's happening at 4am an alert is waking me up. There are tens of thousands of dollars at stake I can sleep later.

This isn't some game for me. When I do something like this, I do it either 100% or 0%. There is no in between where sometimes I check or maybe every other day know what is going on. No...I know what is going on every waking hour. I am working on my work laptop with 8 or 9 tabs open tracking the movement and prices of various cryptos on my desktop. If I am away from it, I am on the app on my phone.

Most people leave a lot to chance. Not me. As little as possible is left to chance.