Feb 18th 2019, Crypto Chartbook

Bitcoin – portfolio add on strategy

Many ways lead to Rome (may be a few less, when it comes to market participation). One such way is a portfolio add on strategy we employ to support an existing portfolio holding.

We have been buying Bitcoin (BTC) early on, as you can view on our portfolio page. But even if you were “lucky” to hold Bitcoin from a price of $372, like in our case, you miss out on vast swing opportunities by simply just trying to hold onto your original purchase. Especially Bitcoin with its steep price advances and declines, invites for a more sophisticated market participation.

Markets trade from downward to sideways to upward price movements and vice versa. In the recent sideways phase of the market, no one  knows when the actual upward turning point will occur.

The following chart illustrates our first attempt to pinpoint such a turning point possibility (1), and it failed. But thanks to our Quad Exit Strategy, we secured initial profits (2) and got stopped out at break even price levels, with the remainder of the position, to still generate income.

BTCUSDT daily chart as of February 18th, 2019 a

BTCUSDT daily chart as of February 18th, 2019 a

Just 4 days later we got it right (3).

Rewarded with a steep up movement, and again partial profit taking (4) secured risk mitigation and provided for generous profits.

BTCUSDT daily chart as of February 18th, 2019 b

BTCUSDT daily chart as of February 18th, 2019 b

Two more times we added to our core portfolio position (5).

And again we took money off the table (6), on the following days to generate income.

The idea here is to now own small left over positions from each of these trades, that can be added to our core portfolio position. All of this was achieved without pyramiding, as it might seem at a first glance. Each added position had its own right of a low risk entry point. Position size is in proportion to gains already achieved.

BTCUSDT daily chart as of February 18th, 2019 c

BTCUSDT daily chart as of February 18th, 2019 c

“Working” these positions on an even smaller time frame again, reduces risk even more. And additional hip pocketing of remainder “runner” positions towards ones portfolio holdings is possible.

We did just that, as this 60 minute chart illustrates and all entry and exit points were posted in real time in our Telegram channel.

BTCUSDT 60 minute chart as of February 18th, 2019

BTCUSDT 60 minute chart as of February 18th, 2019

The pure HODL approach confronts the investor with the problem of when to exit.

Adding strategy components like the one illustrated here, supports the market participant:

  • to ensure long term gains
  • short term income and risk reduction
  • psychological ease of enjoying a consistent growth curve
  • additional portfolio growth
  • appropriate low risk tolerance

All charts timely posted in our telegram channel.

About the Author:

Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.

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