me and my fiat are taking a break this weekend. I think maybe it's not dissapearing into coins but it's just off the order book. I have no idea what to bid at the moment.
I just put lots of bids from $75 down to $10. Whatever the bottom is I'll catch a good chunk of it.
what is the best strategy for doing this?
I usually pick a spot where I want to begin, and double the amount I'm going to buy the lower it gets.
So for example
0.1BTC @ $80
0.2BTC @ $78
0.4BTC @ $76
0.8BTC @ $74
etc.
I'm sure theres different strategies for this but I find this one the most logical sounding.
I have a most likely price target in mind beforehand. For example, a couple of days ago I obtained a price target for this capitulation by way of comparison with the first and greatest capitulation of bubble 1. That one had a 55% drop from the top. This one started at $145 and my price target was therefore $65. I created pre-positioned buy limit orders at Mt. Gox for $95, $87, $80, $76, and $65. Based upon the relentless selling pressure today, I split the lowest bid and created a new bid at $60. Regarding order size, I use a rough gaussian distribution, i.e. bell curve, that heavily weights the orders in the center of the spread. In a sort of monte carlo analysis, I expect the majority of my orders to get filled, but not necessarily the lowest one(s).
My buy points illustrated above are in whole numbers, the actual orders are positioned according to the nearby bid walls, i.e. my orders are relatively small and I want them filled before the 1000+ BTC orders commonly placed at whole numbers as walls.
These execution tactics are new to me. I vowed during the last bitcoin bubble to learn - and to profit accordingly.