Quote from: anvilc on September 04, 2016, 03:16:35 AM

I have two main trading "strategies".

What I do, among other things, is look for coins that have had previous boom/bust cycles, and aren't just brand new flavor of the month coins. Once I have identified the coins that have been holding pretty much steady, for a long period of time, near the lower end of the cycle, I begin to accumulate.

1) For example (completely hypothetical numbers), I'll use DOGE and LTC. These coins have existed for a long time, and have had numerous bubbles in the past, and both of these have been fairly steady at the current low levels for a long time (ideally you want at least 50% below the previous bubble price). I'm not saying DOGE and LTC are the only coins that meet these personal criteria (there are almost always plenty to choose from), I'm only using these as examples. Feel free to use any criteria for coin picking you wish. If you like ETC/ETH/DASH/XMR it works just as well, the important thing is to begin accumulating during the low movement, low price phase mentioned above. If the price shoots up before you begin buying, don't worry about it, again, there are almost always plenty of possible coins to choose from.

I'll then determine how much I want to "invest". So, for example, DOGE is currently around 40 sats, and has been there for at least a couple months. If I want to invest 2 BTC into this coin, I might use half of it to purchase now. If the coin goes lower, I can purchase more to lower my average cost. Eventually (and it may take many months), it should rise, and then I will distribute my holdings as I deem reasonable. I will usually be tracking all my buys at each price point:

500k DOGE at 40 sats
750k DOGE at 37 sats
etc.

Sometimes I will completely sell out if I am happy with a price increase, sometimes I will sell enough to "break even" one of the buys, and hold the rest for free "profit" at some point in the future. For example, during the last minispike a couple weeks ago, if I had the two purchases above, I may have sold say 425k DOGE at 48 sats to "lock in/even out" my 40 sat buy, then save the extra 75k in case the price increased further. Since it didn't, and is now back at 40 sats, I would possibly just purchase another 500k.

2) My second strategy is similar. I will find a good coin to buy, but is more of a longer term "play". I will use LTC as an example, since it is fairly "safe". However, this strategy technically can work with any coin that isn't a one-time pump/dump/dead coin, which is why I prefer longer term coins. I will determine how much I want to spend on LTC, let's say 10 BTC. I then split up the 10 BTC into equal chunks, say 0.2 BTC, and set buys of whatever LTC I can get, at various levels. For example:

0.0005 LTC will get me 400 LTC
0.001 LTC will get me 200 LTC
0.0015 LTC will get me 133 LTC
~~
I will go up to a pretty high, potential top (say 0.04) and "spend" 0.2 BTC every 50k sats.
~~
0.04 LTC will get me 5 LTC
etc.

I would spreadsheet my buys as follows all the way to 0.04 BTC/LTC:
0.00050000    / 400
0.00100000    / 200
0.00150000    / 133
0.00200000    / 100
0.00250000    / 80
0.00300000    / 67
0.00350000    / 57
0.00400000    / 50
0.00450000    / 44
0.00500000    / 40
etc.

Bonus, since prices are really low right now, I can get 0.2 BTC worth of LTC (say 5 LTC at .00395) for a fraction of the price. So, I would buy 5 LTC (for my .0395 buy to resell at .04).

Alternatively, this method is biased to keeping BTC, and is relatively conservative. You can also bias it toward LTC, and instead have say 25 LTC at each sat level mentioned above, instead of 0.2 BTC.

If a buy level hits, I then move to sell them 50k sats higher. So, if I bought 50 LTC at .004, I would then "sell" them at .0045. Basically it's just a game of accumulation and distribution at each price 50k sat price point. My "profits" I will usually just roll back in, so eventually, I may have 0.25 BTC per level (which increases the profit per move). Or you can use your "profits" for other purposes. This method can be slower than method #1, but it is relatively "safer". I'm a long-term BTC believer, so I prefer to stay mainly in BTC (as opposed to fiat), and potentially increase my stash this way.

At lower price levels, where prices don't fluctuate much, you would have fairly high profits for each "hit", but it may be days or weeks between hits. At higher price levels, there is usually a lot more price movement, but the profit per "trade" is lower. If the price does get well above your initial buy in and bubbles, you can obviously just cash out and start over during the above mentioned accumulation phase (or move to another coin, etc.).

Overall, these strategies don't include any technical analysis, but it still keeps me "trading". Obviously these strategies may not work for everyone (they may be fairly conservative and too tame for some), but just the ones I prefer at this time.

If you have any questions, please let me know.

Thanks @anvilc I will try your advice and nice to see such a detailed input.