Quote from: JayJuanGee on January 02, 2017, 04:28:11 AM

Quote from: Yves_Oluchione on January 02, 2017, 03:18:27 AM

Quote from: JayJuanGee on January 01, 2017, 11:30:54 PM

Quote from: Yves_Oluchione on January 01, 2017, 10:13:18 PM

Quote from: JayJuanGee on January 01, 2017, 10:02:07 PM

Quote from: Yves_Oluchione on January 01, 2017, 09:50:09 PM

Quote from: JayJuanGee on January 01, 2017, 09:41:38 PM

Quote from: Yves_Oluchione on January 01, 2017, 09:37:12 PM

Happy 2017 to everyone, I think the next step is the 1050$ if it breaks i don't have any idea what would be the next stop of this rally, maybe some old bitcoiners have an idea Cheesy

?

I think that we need to look at the current ATH as the next stop and a potential resistance point...

There is considerable potential that the current ATH would not be a resistance point because we are already so close to it, but I think that we still need to see how this price range plays out between $1060 and $1180

Seems to be plausible, i'm very cautious because it's my first time as a bitcoiner as i experience a rally a these prices, so thanks for your thoughts

If you are nervous about retaining value with your BTC holdings, you can sell a little bit on the way up. Usually you do not want to sell too much because you could end up with a bunch of fiat and a lacking in BTC.

Everyone is different regarding how they will do it, but I tend to sell 1% to 2% of my BTC holdings every $100 price rise of BTC in about every $10 to $15 increments (in other words staggered in both directions - up and down), and then I buy back when BTC prices go back down... therefore, on average I end up selling less than 1% for every $100 (and my BTC holdings grow overall with the same amount of investment, more or less).

I started this selling strategy at a bit over $250 (but my selling between $250 and about $400 was an even smaller percentage of my BTC holdings because my BTC portfolio was then in the red) and today, I still have nearly 92% of my BTC holdings in BTC and the other 8% in fiat.

Some kind of a strategy of taking profits (even small amounts) can help you to be less nervous during BTC volatile periods (which are almost inevitable) but I think that even with extensive practice a lot of us get nervous no matter what when the price becomes really volatile (especially when it goes down), so we have to figure out ways to hedge and to safeguard some of our nervousness that are tailored to our own situations.

Thanks for the advises, I'm not so nervous because i have started by investing little amounts of fiat every months and i didn't invest a lot since november, also, what i've invested i consider if i lose this amount it won't change my life (even if i wouldn't be happy), but i wanted to trade a little bit but i was nervous so i was just hodl Cheesy

But it's an interesting strategy to start trading at minimal risk, thanks i'll try that

I completely agree with what appears to be your initial strategy to invest small amounts into BTC on a regular basis that you could afford to lose, if worst case scenario were to arise. That should be a continued strategy with any investment (and especially true with known volatile investments such as bitcoin).

Also, I understand that if you are in a kind of initial BTC accumulation phase of your investment, you cannot really justify selling any part of it.. because you feel that you have so little and you are continuing to accumulate and to buy on dips, etc.

I accumulated BTC for more than a year and a half before I created a selling (or BTC trading) strategy... but partly my hand was forced to keep accumulating BTC during that time because during my initial investment BTC prices continued to go down for the first year (2014) and then only became somewhat flat then next 6-8 months in 2015, which allowed me to accumulate some coins at the lower prices and then to create a BTC trading strategy that I considered to be profitable because my strategy only allowed me to sell coins from the ones that I had accumulated below the then selling price (as prices went up - so my average buy price was less than $250 for those coins that I authorized selling some of the profits)....

So in essence I divided my total BTC investment into mostly three components, and initially, I held 2 of the portions that continued to be in the red and only traded from the portion of the coins that was in the green... as price continued to rise, then my other two portions of my BTC portfolio merged into the green or at least closer in the green which allowed me to authorize myself to trade more coins and a higher portion of my BTC portfolio (my cost basis for the coins was a bit of a moving target as the price changed and as I continued to buy and sell, but initially my price averages for the three groups were approximately as follows: 1) below $250, 2) below $350 and 3) about $500.

I created some other limits too in order to only trade from "profits". For example, if you have accumulated 10BTC, then every dollar that BTC prices goes up, your portfolio goes up in value by $10, which is $10 profits. So, if BTC prices goes up $10, then your profits of your BTC holdings are $100, and initially I authorized myself only to trade from my BTC profits (and my authorization varied over time, but trading 30% to 50% of my profits seemed to be somewhat reasonable for me, but I know sometimes people will want to trade either more or less of their profits based on their own personality, view of bitcoin and/or otherwise overall financial circumstances).

Thanks for all these informations, for your strategy a little interrogation to help myself when you sell, at what level do you fix your buy back ? Level at selling - fees - 2 or 3 % ? I think I'll do regularly this in a little percentage until a reliable consensus for the scalability of the bitcoin will be determined, I think you could play with your method as long as this problematic remains unsolved, but I think if this problematic comes to an end the best strategy would be hold & accumulate with buying or proposing services/works based on your specifications/qualifications for remuneration in btc, as mentionned by BTCTrader in the case where Bitcoin could explose and replace the role of the fiat without being limited by the hashing power of the network and their fees for the microtransactions.

NB : Sorry for my poor English syntax, i didn't learn it by the books :/

Surely, you need to figure out a comfortable percentage for yourself for your buy back location and your sell location and your amount. I have varying fee amounts, generally between 0% and .4% (so usually the most for the fees is .8% to account for both the sell and the buy back, so the buy back price should be at least more than .8% lower when I am paying the highest rates.. the most usual fee on both ends is about .4%).

By the way, fees differ on each location, and currently, I trade on BTC-e, Bitfinex, Bitstamp, Gemini and GDAX.

(my local bitcoin's is sporadic and also direct buys and sells to individuals - and I am not currently using Uphold, even though it is available - and we all know that Circle is no longer functioning for buying/selling)

I am selling about .2% of my total bitcoin holdings approximately every $10 to $15 that the BTC prices rise with the understanding of the possibility that those sold coins could forever be left behind (but I will still have the cash from those coins that I could either completely take off the table or just use it for trading around, direct sales, arbitrage and even Localbitcoin sales and purchases/sells that are profitable).

So for example, if I sell at .1BTC at each of the intervals of $999.28, $1014.28, and $1029.28, then as each of the orders fill I may set an order to buy back .11BTC or even .105BTC at each of the intervals of around $981.62, $996.62 and $1011.62. In recent months, I had usually been planning to buy back a bit more BTC than I am selling because I am attempting to keep my bitcoin holdings up and not to bleed off the amount of my BTC sales more than necessary or more than my comfort level - I am currently at about 91.79% BTC, but I would feel a bit better to be above 92%, but I am not really too stressed about it, even though I feel that I have a bit more money in cash than I would prefer.

From time to time, I tweak the amounts and the intervals of my buying and selling based on the fee at that exchange, but I will leave orders on the books that have not been filled for quite a long time, and I have buy orders going all the way down to about $550, and currently sell orders up to $1,220.

In other words, when I sell BTC, it is already in my head that there is a possibility that I will never buy back some of my lower orders at the originally intended buy back price, and after a while I remove those old and lower orders from the table and use that money for other purposes. In that regard, I used to have some buy back orders all the way down to $240, but I have removed all my orders between $240 and $550 and have put that money to use in other kinds of ways - for example trading on local bitcoins and arbitrage opportunities but if I need to I still have that money in my BTC trading funds and I could reopen those buy orders at the low prices if BTC prices were to drop below my currently set orders below $550.

Overall, my method in the last year and a half has resulted in about the same amount of funds invested into BTC (although I do continue to put spare money into BTC in a kind of dollar cost averaging, but it is not any kind of high rate like it was during the first year and a half or so that I was mostly accumulating), my lowering my average cost per BTC from a bit more than $500 to currently around $420, and I have way more cash in my possession (like I said a bit more than 8% of the total value of my BTC holdings are in fiat), and I have about 10% more BTC than I had when I started trading in October 2015.

I will admit that my system for measuring my BTC profit levels is not really scientific because it involves a lot of buying/selling activities and BTC and dollars floating in several accounts, and including a currently 400% increase in the price of BTC... so it is a bit of a moving target to figure out some of the specifics on a rolling basis.

No, I think your strategy is mathematically accurate when uncertainty hit the bitcoin, it allows you to increase your btc/fiat stocks without invest more fiat, i think that now that uncertainty is more on fiat money (in my thoughts) you've got to move up your percentage of btc holdings, this is logic so this is just a question of momentums and be quick to adapt your percentages based on the moving market and fundamentals after all. My goal is just to increase little by little my holdings and if this strategy makes me waste some fiat at the end if i manage to have a good repartition i think it's still a winning strategy. Thanks for the tips this is highly appreciated.

Yves_Oluchione

Posts

Merits