A fail-proof trading strategy for long-term holders even if the market is going down?

I am not trying to imply that I know what I am doing or that it would work for everybody, but the last time I invested in crypto was in 2017 and when the market went down I invented a trading strategy for myself as follow:

1. I would select coins x, y and z that show promise in the future. My starting amount after purchasing with USDT would be 10.0x OR 5.0y OR 1.0z coins.
2. So I would for example hold x until the market is at the stage where I can sell x and buy 5.5y. Sometimes it might take days, sometimes weeks, sometimes a couple of weeks.
3. After that, I would wait again until I get an opportunity to sell y coin for 12.0x or 1.5z etc. I think you get the point.

I did not think anything about this strat since I managed to get my money out in 2017 and didn’t look at the crypto again until 2021. But the benefit of this trading strategy is that you are never \*out\* of your investment and yet it keeps growing no matter what the market does.

In the last month alone when the market has been this volatile, I have increased my coin count by about 25% by doing this.

Anyway, what do you think is the downside of this, if there are any? I think it’s impossible to lose in the long term + you don’t have to check charts every 5 minutes. Once a day is enough.

View Source

13 thoughts on “A fail-proof trading strategy for long-term holders even if the market is going down?”

  1. Trading strategy for hodlers?
    Easy just don’t trade and take out your initial investment when BTC breaks ATH.
    Then start reinvesting. Quite simple

  2. Unless your project shuts down and it’s worthless lol. Don’t forget about all those “promising ETH killer” projects of the past.

  3. Studies have shown that buy and hold outpaces even the best day trading strategy even against seasoned traders and bots. Throw in the fees of trading and the tax implications of frequent trades, it seems like a no brainer.

  4. A down side would be that everytime you trade a coin for another coin (x for y) that is a taxable event at 50% of your gains! That’s a lot of work at the end of the year if you are doing this on a weekly basis!


Leave a Comment