[Daily Discussion] Tuesday, August 08, 2017

Ok, so here's a cool, simple strategy, what do you think?

  1. Wait for a drop on your relevant timescale, use all you know to guess/confirm bottom.

  2. Set stop below the support you're probably counting on, a good buy should not be too far away. Remember, 20 bucks stops cost you basically the same as changing your mind without real price changes.

3: Adjust stop from time to time, if you're right you will come into ranges of taking profit with your stop alone

4: If you feel like sitting in front of the charts, guess local tops and sell, then start over. Or wait for your stop to trigger to start over.

More advanced versions would use OCO sometimes so you can sell where you expect a good top while you sleep. Also the way this is written expects you want to protect fiat and that you expect btc to rise.

To me this seems like a solid strategy that cuts all the panicky behaviour out of the equation and lets you profit from the quality of your decisions. It's main profit comes from being asymmetrically (I guess), which means protecting one side. I think you can't really trade profitable symmetrically although it would get the biggest gains. You need to be able to not play if you can't predict the outcome good enough.

/r/BitcoinMarkets Thread