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Author Topic: Beating HODL by 22+%  (Read 185 times)
crabby (OP)
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May 09, 2019, 11:25:58 PM
 #1

I just published an article which discusses a new strategy for how HODL was beaten by 22+%.

Give it a look and let me know what you think!

https://hackernoon.com/an-analysis-of-high-frequency-rebalancing-a-new-strategy-for-crypto-portfolio-management-da95fe7d4fd4

Thanks!
xvids
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May 10, 2019, 10:59:35 AM
 #2

I don't really think that it would be a good idea .
The way I see or understand the strategy is you would buy or sell every one hour right and in crypto in 1 hour a lot of thing could happen.
We couldn't predict what would happen in the market so for me it is risky strategy to do.
I am not against the quick trade I also use it but not every trade could gain profit.

Lakai01
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May 10, 2019, 12:06:30 PM
 #3

It would be interesting to backtest your strategy in a bull market. I had a balance bot unning til late 2017, it was definitly way less profitable than plain holding!


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traderethereum
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May 10, 2019, 01:25:04 PM
 #4

Maybe that could work for some people, but for the others, I think they need to hold for a while, and it will be more than 1 hour.
As far as I know, hold the coin will need a long time before we can sell the coin and sometimes hold need more than a day or two days so we can sell it when the price can increase.
But sometimes, hold the coin will only need a short time to see the price increase later and that is a different case.
But if you want to hold in one hour because you are predicting that after one hour, the price will be increased, then I think you need to find the right coin which will be too difficult.
I think if you can buy at a price now or a low price, you can sell the coin when it increases no matter if that is only for a small increase of the price because you can get the profit.

Ailmand
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May 10, 2019, 03:51:05 PM
 #5

I think it would only work depending on the coin that you're holding. It's a risky strategy but I guess it would work well for Bitcoin. However, if you'll focus on trading every hour, it wouldn't be profitable as always. I would still prefer a long term hold. I won't risk my holdings just to gain better in such a short period of time.

palle11
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May 10, 2019, 04:17:27 PM
 #6

Such strategy can be risked on bitcoin because of its volatility, one can be lucky in such a short time. Except someone is also lucky that an altcoin gets pumped within the hour of holding.
Genemind
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May 10, 2019, 04:56:12 PM
 #7

That kind of strategy is more like gambling your funds.
It sounds like a risky type of day trading.
You could gain now but could lose at some point.
I'll prefer the normal way of trading and holding.
Trading when the market is surely profitable is the best strategy that we can do without taking so much risk.
chenille
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May 10, 2019, 05:07:33 PM
 #8

I don't think your strategy will be successful. The purpose of HODL is to avoid risk generated by false decisions. Any other strategy will be more risky and the results are as usual when it's a bigger risk:

- you can also make more profit
- you can also have more losses

Your strategy has pros and cons but after all I think it can't be compared to HODL because HODL breaks everything down to avoid losses. HODL is speculating the basics of Bitcoin that BTC price will increase while Fiat value gets inflated.

⁓ chenille! ⁓
rizkyhiw
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May 10, 2019, 10:05:45 PM
 #9

I don't think your strategy will be successful. The purpose of HODL is to avoid risk generated by false decisions. Any other strategy will be more risky and the results are as usual when it's a bigger risk:

- you can also make more profit
- you can also have more losses

Your strategy has pros and cons but after all I think it can't be compared to HODL because HODL breaks everything down to avoid losses. HODL is speculating the basics of Bitcoin that BTC price will increase while Fiat value gets inflated.
Yes, you can say that Hodl is the behavior of people who do not want to take risks with a short period of time but they maintain it with previous values, the strategy will not affect some people and may be reluctant to do so they have a strategy for trading where to use trading strategies and don't make excessive speculation, I will not use the strategy you intended, because you only promote your own articles or blogs.
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