Bitcoin Forum

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

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 )

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.

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.

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.

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.

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.

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.

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.

Usually but not always true for all coins.

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.

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.

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 (https://bitcointalk.org/index.php?topic=5173189.0)
Stop limit order (https://academy.binance.com/en/articles/what-is-a-stop-limit-order)

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.

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. 

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.

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.

we will never know how the graph of the selected coin will match the predictions from the analysis we are doing. maybe we will be trapped in a market situation that goes down much deeper.
we do not know how when we are wrong in placing the entry position. and getting stuck in a market situation that continues to decline or stagnate can be frustrating. maybe this can be overcome by selecting the right assets. trying to get high cap coins would probably be better.

But that's the whole point of DCA, to keep taking advantage of price declines for an entire 3 years or whatever long it takes for BTC to return to the ATH, and THEN move it higher.

DCA is guaranteed long term appreciation (provided you believe Bitcoin continues to grow).

Everyone keeps saying it's just TA and trading, but I keep pointing out nobody has the balls to show their trades because nobody can remain consistently in profit for years. I keep getting called bad by traders, but I think it's worse to tell newbies they can learn trading and make profits. It's not as easy as everyone claims. If it is, we would have tons of threads with people showing real time balances and performance, but we don't, right? :)

Are you truly following the strategy that you've said? It's nothing new and everyone knows that but it's hard to follow when you're inclined with the emotions that you have.

It's true and this is the best method that I've ever known. No pressure.


Sometimes you just can't time the market and even how good you are in TA and other analysis, you just can't beat it. DCA is what he's saying and that's a typical and nice approach.

Even if we assume the OP has a winning strategy, a stretch at this point I know, applying any kind of martingale is a huge mistake, there is a reason why martingale has a such a bad reputation with gamblers that know what is going on, even a gambler which is profitable can be destroyed by the martingale strategy as they are abandoning any kind of money management strategy, and the same is true for the traders which raise their position size after losing or use leverage to recover their losses.

But you wouldn't really place a large order at price 0 because the price will very rarely go to that point.
It's a good strategy to be honest, but there are regrets on the other side. So I'd not wait below the support point for no reason with a higher number of orders, or you'll only be executed a small part of all orders. At least I've to analyze the previous market trend.

That's wrong information my friend, in crypto world an asset can fall more than 2x to 4x depending on the previous pump that the asset as got. There isn't a fix range for falling of coins, and 100% is not a fix range for the dips. If you remember the case of Luna, and then that of FTX then you'll understand that those assets have gone many times down in their price, and that was way more than 100% in just few days.

Still, if we keep a positive outlook at your strategy than still there are many chances that you'll lock up your capital into a coin. The market in the times of bear run goes way many times below the range of 100%, and it hardly ever see a pump in those times. Any negative news in the market could create fear in the minds of the investors and within short period after that news the market can face huge dips because of bulk selling.

Your strategy might work in good market conditions, but a sudden bad condition could lock your capital for a long time if you applied the strategy with a useless coin that has limited use cases. I always recommend you to be careful with the strategy, and you should pick your coin more carefully because some of the coins won't get pumps after getting dumped, and the exchanges usually delist such coins.

Every trader has a technique that works for him or her with the aim to identify the precise trading pattern that suits our activities and generates money for us. Spot trading is best suited for short time frames, when calibrated risks are all that is required to trigger our trades in the market. Indicators served well, and technical and fundamental research also aids in market analysis and detecting potential entrances. To summarize, the market is unpredictable, and we must take extreme steps in order to profit.

The strategy you are implementing is good and it is called an accumulation strategy,
I also do this but keep in mind that accumulation in altcoins must also be analyzed first, because in a bear market, support can also be broken due to high market volatility,
choose an altcoin that will being accumulated is also very important, because if you are wrong then your accumulation in the altcoin will be in vain.

Not only no pressure, it just gives you back all the time in the world you would normally be spending trading, or rather, trying to make profits from trading. The stats are proven. Majority people lose money trading. But that's just a small tip of the iceberg.

The time you lose, the stress, the time you take away from other things. I know because I was doing it.

Paid less attention to job, to life, to friends, to family. And still end up losing and stressed.

DCA lets you live your life, be your best at job and friends AND you win in the end.

If you somehow meet a coin like ICP (Internet Computer), then your total investment is going to go down to zero if you follow that strategy. Btw there are a lot of coins that are doing bad but if you plan to use your strategy on coins like Bitcoin, Ethereum, BNB and others that usually perform well price-wise and at the same time you aren't limited in time, i.e. you can wait till next halving and year or two after that, then definitely that strategy will bring profit back, at least I think so because it has been working since the first day.

The strategy you use in spot trading is to divide your total capital into three parts, with one of which you trade. That is, you adopt this method so that your entire capital is not damaged. But if you are trading with one-third of your capital, what about the other two? Since you don't trade with both parts, I am interested to know how the two parts work. You have adopted this strategy to avoid loss from full capital, but when the value of that coin increases after you trade, is it possible to make the same amount of profit with one third of the capital as you can trade with full share of third?
We must take risks to earn more profits.

but what if it goes down? and getting down? it means you have lost 2 times, I'm not sure your psychology can withstand this loss. so trading is not as easy as you say, all plans can be thwarted in seconds if SEC or other authorities say that Bitcoin is no longer tradable in America or some other bad news.

i think that it doesn't matter if you have a strategy in mind, but you also have to think realistically, you have to look at the condition of your portfolio. My advice is don't put it all in one asset, you have to be able to diversify it, because actually short selling techniques like that are only done by professionals, and I don't think that you are a professional, so you better play it safe.

I think you are not getting what he is implying here, by 100% fall he simply means that the token falls 100% from its current price which simply means that a token goes almost to zero which barely happens unless a project rug pulls. For example, if a token is worth $100 at the moment and it falls 30%, it will be priced at $70 after the fall, and if it falls 90%, it will now be priced at $10.

This strategy is basically good if you are using it for a coin that you trust and know that if it drops 30%, it will recover back and will go higher than the previous 30% that it has lost so that you don't get your money stuck in the trade.

Yes I like this strategy, I always use it in my spot trading.
Buying at different price levels reduces losses and gives you a good average price. Buying from one level with all your capital is the worst thing in trading.

But you should be careful that this strategy may not work all the time, it may sometimes cause a complete depletion of your capital and a big loss if the coin continues to fall more and more.

Your trading strategy involves allocating a certain percentage of your capital to buy a coin when it falls in price. The percentage is determined by the extent of the coin's price drop in the last 24 hours. Your approach aims to take advantage of market fluctuations and capitalize on potential rebounds. By purchasing at discounted prices and waiting for the coin's value to increase, you aim to sell it for a profit. Think it is a very good strategy which can help make you decent profits.

As long as you have a system then you are good to go. Now the true test is being a TRUE TRADER and to FOLLOW YOUR PLAN WELL. This will prove your profitability. Build consistency on your trading by executing it well. It will work.

Since it's in a spot, you won't lose money unless you became impatient and sold your position. That is why following your plan is the most important.

As a tip, I would say be more specific. of the following:
What is your RR?
Where is your Stop Loss?
Where is your Target?
What time of day will you engage the market?
When will you remain liquid and not engage the market?
How will you monitor your trade?
How will you journal your trades?

I have been trading for a long time, but till date I have not adopted your strategy, and I like your strategy very much. Sometimes a bad news can cause the value of a currency to fall drastically. The most important thing is how much of your money you have used when a token falls in price. Never invest your total capital when the value of any token is low.

Your spot trading strategy is quite good, and by following your suggestions traders can do a good trading, and traders can reduce their loss rate, and increase their profit rate very well. Your suggestions will be very helpful especially for new traders.

There are some great advices here and further questions to hone the strategy, OP should use it to make it work. However, it made me realize what if we all got together to build a strategy? I mean there are so many great minds here, and we could definitely get together and all of us here could build a strategy that would work very well, couldn't we?

Doesn't mean it will always profit, sometimes it will be wrong, when the market goes down or some bad news pops out without any warnings, it will be impossible not to lose money but that doesn't mean that we can't try. I think it is quite important that we do what we possibly could do and if we do that then we are going to end up with a great return when the time comes. We should maybe give it a try.

The dilemma of this strategy is what if the price will continue to decline and there is no sign of going up?
Remember, most alts have such trend because they already got their peak at the start.
And once the team got their money out of this project, they don't care anymore about its remaining life in the market.
So such strategy of the OP is not true or work in most alts. That will only work if you are seeing that the coin has the chance of reviving itself.
You can only see it happen in most old alts where you have the confidence that they will not disappear in the trading market.
Most new alts will just be abandoned after quite some time without a warning. And so the strategy won't work because the decline is continuous.

Well that assets fall 10%-30% cannot exist in the top 10 list, maybe one or two fall in that range but that will be due to the bad conditions of the economy or many other factors. The point is if you are using this strategy in alts which are way more volatile and if they drop 30%, you will put 30% of your capital in it, what if that high volatility token remains 90% down for too long and at one point you will observe, it is not going back. For example, once i took entry in the DYDX token, when its price was around 19$ and sold then at 9$ because at that point, i knew, it is never going to touch 9$ too. so i sold them and yet i proved to be true as currently it is lower than 3$-4$.

Drawbacks of this Strategy

• What if a token is dropping 0.2% to 0.5% in 24 hours, then will you still put the corresponding capital in the market? If yes, then the profit ratio will be too long as the capital invested is low.
• This strategy needs to be implied on highly volatile tokens but that is too risky and sometimes there is a fear of losing all the assets

But overall, i liked the way you think, because you are taking full benefit of downtrend of the asset and i will try to use that in less volatile assets, maybe mostly in BTC