Day Trading with cryptocurrencies?

Pussyhands

SteelyDanJalapeno wrote: »

You will eventually miss out if it ever goes "to the moon" again as you will have sold for you 2 or 3% by then.

Not the worst method thou, needs a bit more TA maybe

Yes but at the moment it doesn't look like going to the moon. Even if it did go to the moon it would never not drop again. I think there'll always be 5 percent or so drops often enough... Even if it moons

smacl

Pussyhands wrote: »

Well lads,

So Tether stays at 1 dollar.

This market sees swings of multiple % in a day.

How about this...you buy Bitcoin when price decreases a number of %.

When it increases you sell.

When it decreases again you buy again.

Each time trading in Tether.

Risk is if the price stays down below the price you bought at and it never goes above that price.

Thoughts? Been thinking about trading my 16 dollars of vechain (originally 100 euros, sigh) and playing with this idea.

Way i tried was as follows;

1) Always hold funds in fiat when not trading, Kraken in my case
2) Have a percentage which is minimum acceptable gain
3) Have another percentage which is maximum acceptable loss
4) Buy crypto when you see an upward trend
5) Sell back when minimum gain or maximum loss is achieved

Didn't really work for me as gains and losses were being hit as often as one another, probably due to having the percentages too high. I think to work this you need to set your percentage thresholds very low (but obviously greater than transaction costs) and run it using bots making lots of small transactions against all available fiat/crypto pairs. There are still plenty of risks (e.g. the crypto could fall more quickly than your bot response and you miss your sell at a loss window). Day trading manually in an environment already full of bots looking for continuous small gains is likely to be a losing game. You might get lucky and beat them occasionally, but very difficult to do consistently.

I also tried something close to what you describe above and got caught holding depreciated crypto that didn't recover.

makeorbrake

smacl wrote: »

4) Buy crypto when you see an upward trend

Which TA indicators do you prefer for crypto? Do you base also on fundamental analysis, upcoming 'events',etc.?

smacl wrote: »

5) Sell back when minimum gain or maximum loss is achieved

On that, are there any exchanges out there that offer 'trailing stop loss' functionality? Thinking of setting something up on btc for the SEC announcement. I expect it to be knocked back but it's interesting as CBOE have included insurance in their pitch. Not sure how many points back I should set the stop...

Pussyhands

Well I am going to sample it with my 16 quid of vechain. Vechain was up 9 today so I sold for BTC, then bought Loom which was down about 10% at 20.1c ($)

I have a sell order set at 22.5c

Let's see.

smacl

makeorbrake wrote: »

Which TA indicators do you prefer for crypto? Do you base also on fundamental analysis, upcoming 'events',etc.?

On that, are there any exchanges out there that offer 'trailing stop loss' functionality? Thinking of setting something up on btc for the SEC announcement. I expect it to be knocked back but it's interesting as CBOE have included insurance in their pitch. Not sure how many points back I should set the stop...

Really basic stuff to date. Trends on exchanges typically. If I had the time, I'd look towards API tools across an array of sites being scanned on an ongoing basis by bots / automation tools. That's coming from a personal bias as programmer for way too many years. Something along the lines of buy once the graph direction is at half the desired percentage goal and then hold until win or lose scenario is hit. Rinse and repeat. If it worked probably move to something more adaptive, e.g. losses exceeding gains, auto tweek maximum acceptable loss downwards, gains exceeding losses, auto tweak minimum acceptable gain upwards, etc... Main thing I'd look is rule based automation, minimising time spent holding crypto, and if gains were made, SEPA it out at a fixed threshold level rather than gambling. Again you could have an adaptive re-invest level.

Note all of the above is entirely speculative, my trading history to date is pretty woeful (albeit manual and a learning processed), so take the above with a large grain of salt and maybe a shot of Jack Daniels

Pussyhands

I made an error and bought loom network but quickly discovered the volume wasn't a lot so I took a small loss of about .5% and bought Neo at 33.17$ when it had a sizeable drop.

Neo now at 34.04$