Disclaimer: This content reflects my personal beliefs and trading strategies. I'm not a trading or investment expert. Do your research and apply critical judgement before making trading decisions.

Warning: Because crypto is in a big frothy bubble, expect it lose value suddenly and unexpectedly. Only trade with money you can afford to lose. I overheard a posse of bro-dudes buying latte's the other day. They were boasting about borrowing money to buy crypto! BORROWING! If that sounds reasonable to you, drop everything and read The Great Crash 1929 by John Kenneth Galbraith. (Amazon affiliate link)

Request for feedback: This is my first post to steemit! I'd like to get your feedback and suggestions! Please comment below.

The strategy

Here, you see the price of Ethereum measured in Bitcoin. Unlike the a stock price, this line shows the changing value of BOTH currencies.

As shown by the dotted lines, the values of Ethereum and Bitcoin have a fairly predictable relationship:

• They are stable relative to each other: They tend to stay within the band defined by the parallel lines.
• They move in a consistent direction for extended periods: The band is straight.

This means that you can take advantage of the price fluctuations with low risk of the price flying off in an unpredictable way.

Put simply:

• When the price of ETH/BTC hits the lower line, use BTC to buy "cheap" ETH.
• When the price of ETH/BTC hits the upper line, use ETH to buy "cheap" BTC.

There are two approaches to this type of buying and selling:

• "Semi-Automatic": With this approach, I take the projected buy and sell prices from the dotted lines and put them into the STOP LIMIT feature. This approach frees me from constantly watching my exchange account. I may give up a few percent in profits, but it lets me do other important things like sleep, eat, work my day-job, and share a life with the people who matter most.

• "Fully Manual": With this approach, I check the exchange price frequently and watch it for extended periods. This is a great place to observe and learn about exchange behaviors but not a good way to spend your life. Unless you earn a lot more from trading than you do from your day-job (and if you do, why are you here reading this?), only use this approach to study trading for limited periods, like when you're on vacation and your loved ones are off doing something else.