The strategy of OP is not easy to pull off because the price of bitcoin doesn't easily recover by $500 or crash by $500 every day. Imo it could work but not all the time.
That is why you should do the daily trading and be active, I believe if you have that huge bankroll it is still possible for you to make that happens because their volume on 24 hours is really much far than you can imagine. You can see big exchanges that having like billions of dollars traded on each coin, conpare to your $500 profit is really easy to do. You just need to be active on trading and thats all, no need anything more