This does not change the fact that trying to "ride the waves" or "predict the patterns" by investing/divesting multiple times while Nak is playing is just another form of gambler's fallacy. There are no predictable waves, no patterns, just random events.
If this is true, then investing / divesting does no harm (other than the opportunity cost of not being invested part of the time).
On the other hand, investing / divesting seems to work very well.
If I'm not 100% convinced of the Gambler's Fallacy explanation, then it is reasonable to invest / divest. At best, I come out ahead. At worst, I come out about even.