Crypto Trading Strategy - Juggling with Multiple AltCoins in an Intra-Day Scenario [from Chaos to Profit]

I have some years of direct experience with crypto trading and it's really vital, to be successful with that, to have a solid, well tested strategy. Here's my own, verified approach to day trading with cryptocurrencies.

The typical AltCoin scenario

• some brand new coin (like ZEC recently) starts gaining 100% value or more, then suddenly everyone wants to buy it
• as soon as you are able to buy, it starts loosing value very fast and you finish with a heavy loss

image from crypto-news.net

Surfing the Crypto Waves

Just like the ocean waves, the price moves in a cyclical way and sometimes is hard to catch the "perfect wave" and to enter it the right moment.

image from surfertoday.com

Diversify and Juggle

If you trade only one single AltCoin, you are relying only on that one, and loosing can be quite easy. The best strategy is picking a few of the top-10 higher volume coins and starting buying.

image from njpartyentertainment.com

Choose wisely

Try to pick different cryptocoins, and also keep some BTCs away from your trading: if bitcoin will start rising suddenly, all the other coins will start to fall, but you will still be earning with your BTC savings!

image from themerkle.com

Also consider that while an altcoin is going down, another starts to rise, so it's better to choose "conflicting" alts, to be sure that you will get some profits from one of them, while the other is performing bad.

Try to pick some high-volatility coins together with some low-volatility ones, just to balance your investment.

The psychological factor

Trading different coins at the same time will help you to reduce your anxiety: one of them maybe is doing quite bad, but another is doing great, so you can start to take the profit from the last one, while going long on the other.

If your mind knows that you're winning and loosing at the same time, it will perform better; additionally the whole trading will be less boring (you will not need to watch a single chart for hours waiting to sell or buy).

Look at the full picture

Your coin may be bearish in the short period, so you are currently loosing money, but if you look at the long-term trend, it's still bullish, so you have just to hold it and wait some more!

Take the money and run

Remember the great Woody Allen movie? It was called "Take the money and run", so you need to do the same! When you see that the bullish trend is exhausting, just take the profit and wait to buy again if it starts again later.

image from woodyallenpages.com

Fundamental vs Technical Analysis

Are you trading the news/rumors (fundamental) or the charts/indicators (technical)?
I think you need to check both of them, but remember:
the only real data is right on the price chart, no news or technical indicator is 100% reliable!

From day-trading to long-term

After some hours trading, it's better to stop, or you'll get too tired or confused.
So you'll need to close the most dangerous, high volatility trades and go long (overnight) with the others.

Using the Stop-Limit feature

Also remember that you can activate stop-loss triggers that will work for you when you're away from your computer!

image from How To Use The Stop-Limit Of Poloniex (Steemit post)

From Chaos to Profit

The Chaos Theory, or nonlinear dynamics, belongs to mathematics, but is very useful to apply it to markets. What apparently looks like chaos or randomness, is indeed meaningful and can be very useful for trading.

Bill Williams' Chaos Trading and Fractals

The first professional trader to bring the Chaos Theory and Fractals into markets was Bill Williams, and it's currently my favorite one. I bought his books and I really like his approach and views.

Here's a 20-years-old talk by him, I think it's still very useful and interesting today!

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