Quote from: manicminer on January 10, 2017, 06:05:58 AM

Quote from: BiTiB.eu on August 02, 2016, 12:22:11 PM

Hallo,

This morning BTC lost 600$ , and now move around this support. We suggest to hedge position (expecially if you are in profit yet).

Follow our sheme:

A) We suppose you have 100 BTC (bot work the same with 100.000 satoshi too

)
B) You would preserve FIAT value (so 60 k $)

What you need to do:

1) Sell 20 BTC (20% of your asset) and hold 80 BTC
2) Go short on leverage 5x using these 20 BTC
3) Take Profit on leverage position @ 500$ & Put Stop loss on Holding BTC @500 $ too
4) Stop Loss on Leverage position @660$

This is a simply Hedge position that preserve your BTC value at a cost of about 3 % (spread + net loss)

But there are lot of hedge strategies: let us work for you, take a look on www.bitib.eu or PM me

Though the OP is selling something, would you be able to explain this hedging strategy to me like to a 5-year old? I'm interested in bitcoin hedging strategies in general. Wrong thread?

Well, I read this thread back then (yes, I did read it), and I admit that I didn't quite understand it either. If I don't understand some trading strategy and I don't feel like there is something in it, it's usually bullshit and not worth time getting the hang of it. I know it is a harsh approach but it saves time and money if you are going to use it blindly (which is evidently a big no-no). Now I looked deeper into it, and in this case, if you want to preserve the fiat value of your bitcoins, it seems that you would be by far better off by just selling all your bitcoins at 600 dollars per coin (and buying back at 500 dollars). If Bitcoin rises with an open 5x20 BTC short position (which is equal to profits and losses for 100 BTC), this position will cause you net loss which will eat profits earned by 80 BTC appreciating that you still have since 100 > 80...

And don't forget interest paid on borrowed coins