💰 Super Simple Trading Strategy - Update - The fall of NSR
Proven again. Bitcoin jumps and alt-coins turn red
Or in other words, they hold their value.
I wrote about this factoid some time ago in this post, showing two charts mirroring each other, bitcoin and steem. Strangely enough, you cannot find the A-to-Z price drop in alt-coins when you price them in XMR or USDT.
Unless you look at your crypto priced in bitcoins, you will find that your holdings are not reacting much, if at all, based on the latest bitcoin price move. But my trading strategy looks to dump charts, dump emotions, and use one figure to dictate buying and selling. If under one-bitcoin-total-value, buy. If above one bitcoin, sell some.
It's difficult to remove emotion from trading decisions, but that is precisely what I have been doing.
What's been happening?
I started with a few bitcoins, selected three coins and invested ฿1 in each one. That was five weeks ago. I have expanded my holdings since then and even withdrawn a couple bitcoins.
After several weeks, I was able to nearly double up, and I made a post when I was holding ฿7 worth , moving up to ฿8 (total value) last week, then one coin dropped off - went near worthless.
I woke one day and my list of coins were all hovering at or above ฿1.000 but NSR (NewShares) was at ฿0.310 having lost 70% overnight. When I clicked to take a look at the chart, there was a notice saying the coin would be delisted.
That reminded me of a question I had received from @ausbitbank after I first posted this simple strategy. I will answer it now.
Well, this coin certainly qualifies as dead. So what did I do? If I had sold it, I would have locked in my 70% loss. By keeping it, I lock in a 90% loss at its current price with little, if any, hope it will ever be revived. Likewise, I also held bitcoin when it went to $40 and then fell to near nothing. I also held bitcoin when it went to $1300 followed by many months near $200
A loss on paper is not a loss until you sell!
When your system allows you to shrug off an entire bitcoin falling off, it's a good system.
Yes, I still have 2.5 million worthless NSRs in a wallet. DGB is in the same prices range, but active still.
I woke up this morning and saw a coin drain
I am still using the same system. When I opened Poloniex, I saw that everything needed to be topped off. Yesterday, they were all prices in less valuable bitcoin. Tomorrow? They will likely snap back.
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Note that the ฿1.59 shown above is profit. If these coins had not fallen, I would be looking to either add another coin or withdraw a full bitcoin in order to keep my online wallet from bulging. (gox anyone?)
It's really hard to "spend" ฿0.7 to get my levels back up to ฿1 for each coin I hold. So I go in quick, grab what I need to put them back up to ฿1 and then I leave. No emotion. Not so much as a glance at charts.
One goal - Make a column of 1's
Now I am back to maintaining ฿1 levels
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As long as you can avoid lower level coins that get delisted, this system works and builds wealth.
Let me say again that holding coins on any website is the same as putting them in a stranger's pocket. Poloniex has never been hacked (that I know of) but that doesn't mean they won't be.
Cover image source: Stairs
I appreciate your comments, upvote, resteems and following.
I upvote all friendly comments and reciprocate other good will :)
You are a Genius!
"If under one-bitcoin-total-value, buy. If above one bitcoin, sell some." So simple.
Yeah it worked well - made a lot of money for nearly no work until I lost all confidence in @poloniex. All my money is out of there now.
https://steemit.com/poloniex/@sponge-bob/poloniex-could-it-be-they-are-driving-down-steem-prices
Going to try replicating it in Bitshares or Bittrex.
Good idea to bail, it’s only a matter of time before they sink with everyone's investment. That was the first article I read by you, which lead me to your trading plan. I’ll be using your method on Bittrex next month.
Are you doing this manually or using a bot like https://cryptotrader.org ?
I do it all manually. It's not that much work. I just glance at the list and shave off the top on those that are 1.1btc or more. Then I buy up fractions for the coins that are below 1btc. The hard part is not getting emotional.
That sounds clever. I'm operating carefully in a similar way: Buy low - sell high applied to several altcoins. But you have still the risk that one special altcoin will replace bicoin entirely.
See also https://steemit.com/deutsch/@freiheit50/koenig-bitcoin-und-seine-moerder-short-english-abstract-included
I have been selling bitcoins for well over six years, mostly while sitting across from a stranger in a bar or cafe. I got out of bitcoin in December 2016. They are no longer instant, no longer free to transfer.
I still sell, and I still promise bitcoins to the buyer, but I show up without any bitcoins. My Coinomi wallet is capable of sending Dash to bitcoin or Etherium to bitcoin with one click, but I try to get an answer from the customer as to why they want to wait 2 hours for the first confirmation while paying 10 to 20 dollars for the transfer. After all, there is a Western Union right around the corner.
Many of my customers have downloaded Dash wallets on the spot.
Wanting. Needing. Having to have bitcoin is like insisting on the outlet that is full when there is one that is not overloaded right next to it.
Poloniex delisting announcement was unacceptable. It should have been done as pre-announcement first (without mentioning the names of the cryptos) a week before the full announcement.
I agree. Sucked the way they did that. I still have those half million NSR that are now worth 20% of what they were pre-dislist
I susually choose to hold than sell when something spikes down.
I have been trying this out with 0.1 BTC on a particular coin and since your post I have made 0.4 BTC on it which is a healthy return. This strategy does seem to fit with the cyclical rise and fall of coins throughout a week
I am glad that you are seeing results. I also tried this for over a year with 0.1 per coin. Selling when you suspect it will go higher is hard. Buying when you think it may go lower feels wrong. But trading this system works if it can be done without emotions.
Hard work is proof of success
Thanks for the advice (especially the part at the end about keeping coins on a website). I don't have much outside of steem but it was good to get a reminder that I should better protect what I do have. Thanks!