As the market kept falling this week, we stayed SHORT in our positions.
Out of 15 positions, we are now beating 8 crypto pairs. We are catching up with the HODL strategy overall. We remain in a Long position with Ethereum but it may not be too long now before we see a clear SHORT signal.
Cardano (ADA/USD) the second of the two remaining charts that for us look bullish finally crossed the lines drawn on the sand. Cardano had done well climbing from $0.09446 back on the 13th of September last year to its peak of around $2.50 USD. But recently, along with the other cryptocurrencies, people have started to sell it. Yesterday we got a bearish signal before it crossed short-term trendline and support levels.
On the 23rd of Dec, I have overridden my algorithmic trading signals at around 2 am and reversed them 11 hours later, around 1 pm, to get back in sink with our algorithmic trading signals. These trades were labelled algorithmic instead of discretionary. These have been corrected.
A duplicate trade signal for XTZ on 2020-10-11T07:48:43+0200.
There was already a Long trade signal on 2020-10-10T21:53:51+0200.
The duplicated long trade signal — the one given at a later time — will be deleted.
There are posts that are better presented as videos than as a blog or an article. So we have created a YouTube Channel we can use to publish videos.
The YouTube Channel is called Trading Adventures and it will cover videos related to trading Bitcoin and Cryptocurrencies as well as exploring their use-cases in business and in everyday life.
Please subscribe to it and if you have suggestions as to what you would like us to cover, let us know.
Our current parameters: allocate $1000 to trade each currency pair, trading 15 currency pairs, for a total of 15000 initial capital.
If we traded this strategy, our equity would now be $17,879. We have gained $2,879. That is a return of 19.20%.
If we compare this to having HODL'd, meaning we just bought and held during the same period, our equity would now be $15,299. We have gained $299.
That is a return of 1.99%.
Polkadot shot to the top 10 quite (according to Market Cap) so suddenly. We tried to short it but changed our minds. We then re-entered in stutters but now we seem to have found our footing. In a way, Polkadot is an experiment because we are relying on such a very short price history on which to base our decisions.
NEO really has us second-guessing. It had been behaving differently than most since we started trading it. Most cryptos have a similar rhythm to Bitcoin BTC but NEO seems to have it's own rhythm. So far, it was better to have HODL'd NEO than to have traded it with our signals.
I initially thought of just paper-trading Bitcoin SV but I slowly added cryptocurrencies to the portfolio because I needed to spread out risks and even-out volatility so it is not reliant on how we trade just one project. Now we have added 14 others, with the recent ones being Cardano (ADA) and Tron (TRX).
I thought of paper-trading IOTA about a month ago. At the time, it has already risen by a lot so I thought at some point, it would lose its steam so I looked for a Shorting opportunity. I opened a short-trade on the 11th of August. It went down but then it started to go back up and ate up any open profits. I thought that much of the buying demand had dried up but it hasn't. So being more cautious, I decided to wait.
At the start of the week, we jumped the gun thinking #Bitcoin #BTC was going to back up but then it makes a U-turn. We then close the Long position and go Short. There are people looking to buy around the $9K area.
ChainLink had been in the top 10 for a while but did not know much about the project so it as not in my radar. But this week, we added it to our paper-trading portfolio. We were too late to catch the bull-run but so far, it looks like we are on time to catch the drop down.
We took a LONG position with NEO a month ago before it slowly began its ascent. Then just when it started to look like the trend was finished, we tried to short it a couple of times but it kept going back up. So we jump on again for the final time, then it shoots off!
NEO has been included in a Coinbase project called Rosetta.
Bitcoin BTC and Ethereum ETH seemed to have followed the same pattern the last month. They started rising and yesterday their trend seemed to have ended which presented an opportunity to close of our trades at a profit and short-sold them we sold them.
The OMG/USD trade is currently posing a dilemma. Do we stick with the plan or de we make a discretionary call? The dilemma is that the trend looks strongly bullish, which is normal after such an extra ordinarily strong price spike. All technical indicators naturally show strong readings, but on the whole, I feel strongly that it is right to close the trade, take the paper profits. I am seeing many bearish signs.
I will make two calls of when to close trades like the current one with OMG:
OMG/USD has just skyrocketed very far, very fast, relative to its movement the past year. Now it is at around $7.50. What to do next? Because this is a very unusual event, this is where one may take discretionary decisions and take profits and buy back later, depending on your buy-back strategy. A buy-back strategy is basically what your rules and conditions are to know when you need to go long again.
"The federal agency in charge of regulating digital assets in Japan, has given OMG Network (formerly OmiseGo) the green light for the sale of its native token in the nation. As a result, Japan-based cryptocurrency exchange GMO Coin announced in a recent blog post that it will list OMG on its retail trading platform."
After an extensive sideways market, we got in almost a week before the price broke through crucial Support-Resistance Levels.
Today, we closed the first big gain from Bitcoin SV (BSV) a couple of days after we closed our first big gain from EOS. However if Bitcoin BTC goes above $12000, that can bring about a fresh bout of buying which might mean we need to reverse and go Long again.
Given that the price of cryptocurrencies is very volatile, what do you do when the price of the cryptocurrency you are holding, keeps going down? If you have a relatively small amount, then you might not worry too much about it. You can afford to keep holding until nothing is left. But what if you bought enough for you to care? At which price point do you exit? Once you provide a precise answer to this so that you are going to sell based on certain conditions, then you have essentially created a trading plan. It might be just one trade, and it might take ten or twenty years, you are still trading because your decision is based on price. Your time frame is just longer than most. How will you approach this problem?
I track a lot of varied topics because the human mind can be creative if you feed it lots of ideas. On this website, you see posts about Bitcoin, cryptocurrencies and the economy and various other topics that may not seem related at all. But how do they all relate to deciding on what we should invest our time and money on and how we can go about doing this? We cannot know nor understand completely how our minds connect dots, but it does. Today, I decided to share something personal to me — something I have been working on to give you context as to how I use and integrate all these things I post about.