My trading strategy: profit is not based on USD

[MrSpasybo 1049]

Usually, a trader calculates his return based on the asset's value in USD. For example, yesterday he invested 2800 USDT and bought 1 ETH. Today ETH price reaches 3200 USD, he sells 1 ETH and has 3200 USD, so he makes a profit of 3200 - 2800 = 400 USD = 14.3%. Good job!

 

However, during this bullrun season, we all know that Altcoin's price increase potential is very large, making traders less profitable than holders. For example, a holder buys 1 ETH at 2800 USD and holds it until the end of the bullrun and sells 1 ETH for 10K USD, he will get a profit of 10K - 2.8K = 7.2K USD = 257%.

 

For trader: he usually sells tokens as soon as returns are between 15-30%, and even though he works hard, he usually only makes 100-150% returns during the bullrun.

Very few traders achieved greater profits than holders during the bullrun.

 

So I am doing a trading strategy with profit based on the quantity of one altcoin that I trust. And I join the trading pairs and then take profits on this token to optimize its amount instead of converting it to USD.

 

For example: I believe in the future of BCH, I will enter trading for the purpose of optimizing the quantity of BCH I hold. For example, when BCH/BTC reaches a high rate, I will sell BCH for BTC and wait for the BCH/BTC rate to be low and buy in to increase the amount of my BCH. The end goal is that I'll have plenty of BCH before the bullrun season ends, so I get a compound profit from the increase in BCH quantity and price.

 

However, as far as I experience, trading on an altcoin is quite stressful because that key altcoin price also changes over time and it is difficult for me to optimize the amount of key altcoin. It's a bit of a pity but I usually close when the return is 5-10% instead of waiting up 30-50% like for USDT based trades.

 

What do you think about this trading strategy? Do you like its potential or fear its complexity and risks? And are you trading and calculating profits based on the amount of USDT or Bitcoin or Altcoin?

[MrSpasybo 1049]

6 hours ago, Abd 360 said:

I think it is imoossible because USD  is one of the best physicall currency which is used in all over the world and btc is the best virtual currency which is used in all virtual programme. So dont be panic about that because your profit will also in the form of btc in the virtual program and in the usd in the physical site. 

@Abd 360 Some traders I know are adopting this method, some love BNB and trade with the aim of optimizing BNB before the bullrun ends, others love ETH & BTC, they all make profits by this. For example, a friend of mine had x5 his BTC holdings. Along with the increase in the price of BTC, he has x10 asset value in USDT.

[Whited35 15285]

On 4/30/2021 at 3:53 AM, MrSpasybo said:

What do you think about this trading strategy? Do you like its potential or fear its complexity and risks? And are you trading and calculating profits based on the amount of USDT or Bitcoin or Altcoin?

Yeah, the trading strategy that you are preferring is impressive and myself I do not always rely on Euro to check my profits counts but also use the BTC as the base currencies. I generally monitor the price of pair strengths for my favorite pairs like ETH/BTC, LTC/BTC, ADA/BTC, and BNB/BTC. 

In general, I am holding Bitcoin, ETH and other valuable altcoins but mostly, I love to prefer day trading on the volatile assets like Dogecoin, AWC, etc. 

[sikaup 0]

we must not be greedy, 15% is a large sum, that's what I do I convert into BTC and I calculate my 15% of earnings and I activate the automatic conversion into usd, this is the best way

[Maaz sultan 265]

i dont aggree 

On 4/30/2021 at 3:08 AM, MrSpasybo said:

For trader: he usually sells tokens as soon as returns are between 15-30%, and even though he works hard, he usually only makes 100-150% returns during the bullrun.

Very few traders achieved greater profits than holders during the bullrun.

Friend trading is much profitable as you told if holder make 10% gain in a month then a trader make 200% in a month , i agree that in trading the risk will rise and we have less chances of making mistakes thats why succesful traders uses risk management strategy but be careful trading needs too much ex[erience and knowlege before entering the market while holders need to buy and hold .