Ethereum: Portfolio strategy

I'm applying this strategy to my holdings, it's based on Tim West's ideas, which I already quoted in my previous ETHXBT             charts.
I added the weekly profile chart to illustrate the fair value areas, as well as the instante rejection/low time spent at price support and resistance , where larger players liquidated (and bought in).
If ETHXBT             gives us a bullish signal and we observe higher volume , we can start to predict direction, for now, it remains ranging around the mode.
So, buy low, sell high applies.
Cannot read text at chart.
Why weekly timeframe? Coin has only few weeks, weekly scale is not telling too much imho.:)
"Suggestion: If you feel like Ethereum might be a
good investment, apply an investment strategy to it.
Buy your desired BTC amount of ETH, say, 30% of your BTC
(which should already be a safe amount of Bitcoins to begin with, since holding Bitcoin
is in itself dangerous).

We stake 30% of our BTC in ETH, then whenever
price goes down by more than 5%,
we buy more ETH to stay at 30% allocation.
Sell these extra coins when price goes up
by more than 5%, and to go back to 30% allocation.

Rinse and repeat.
How often to rebalance the portfolio?
I'll leave it to your discretion."

I've said it before, bars represent periods of time. If in these time periods, no transactions took place, what is the meaning or significance of said bars?
With such low liquidity, we can't conduct any realistic technical analysis, specially not one where time and price are linear variables, like when you draw trendlines, etc.

For that reason, I'm plotting a simplified profile view, to graphically represent the important price levels on chart.
If you are not familiar with how to use it, then I'd reccomend checking out Tim West's charts here, and also the following books: "Markets in profile" by Jim Dalton, "Value Based Power Trading", Donald L. Jones.

If you still don't find any value in these, then I can't comment any further, trading is a highly personal endeavor, we trade our belief systems, and we trade our own personal edge, which we have to find to be profitable (as taught by Van Tharp in his book "Trade your way to financial freedom" (this one's a work in progress for me, seems very good so far :D).
+2 Reply
oldstout IvanLabrie
Thanks for reply. To me weekly chart is good for coin with minimum 1 year life, but I respect any method and timeframe that people use if this is profitable.:)
If you have too many bars at one price, you can simplify it and go to a higher timeframe. It's part of time at mode's rules. (Tim West's methodology)
I like the strategy for maintaining the 30% holdings ration. Very rational. Thanks for the info. I am currently mining ETH, havent bought any, though I may buy a little when the price dips below 380k.
IvanLabrie PRO Jay Snippit
Thanks, it's a simple way to trade. Can be very rewarding. I made a 43% profit with ETH trading like this. Nothing spectacular compared to people making 100 btc with margin, but it's a different thing altogether. Mining is investing electricity in it, so you already spent money on it, keep that in mind when figuring out how much to spend.
Good luck!
Answering to new thread as we told.:)
I dont know if there's be something serious in ETH rise before hit extremally hard bottom like 0.002 or even 0.001 or below.
Remeber ico price...
Anyway, I think about DASH last weeks, maybe its time to do some serious bull run.
I hope you are researching sometimes also another than ETH altcoins.
oldstout oldstout
And please think about typical alltime chart of most altcoins Ivan.
Big first bubble and long downtrend.
This scheme is very typical for altcoins and for now ETH is walking that path very clearly.
Yes, probably doing that.
I'll have to buy more to stay at 30% of the btc risked.
It's a problem if you trade short term.
Not a problem to hold an unrealized loss, when the prospect is of a big pump in the future.
All the lower entries compensate for the ones that were in the red for a while.
And you only risked price going to 0 with a rational BTC amount.
oldstout IvanLabrie
Yes but remember in altcoins easy to be bagholder when you have wrong decision about mid/longterm.
In ETH case, dumps can active ICO holders to sell, because price is still extremally profitable for them.
Even if few % of ICO buyers considering sell, it is huge supply for ETH makret, and demand is not rising too much at poloniex.
For now this is win-win game only for: a) ICO buyers b) short term traders who traded both (long/short) ways c) short/mid traders with shorts
Yes, that's how it is.
Time to hold some bags then. ;)
What's the point here?
Have you seen my publications other than this ETH one?
If ETH goes to 0, I'm prepared to take that hit...if it doesn't I'll continue to apply the same methodology until it rallies (or something drastically changes, forcing me to change my mind).
oldstout IvanLabrie
Hey I saw few of your chart few days ago. Good analysis.
Hmm ETH is oversold at 12h and touching 1d oversold rsi.... might be good signal to buy.
Most likely retracing a bit.
In a trading range, I use CCI with 11 periods and bollinger bands with 21 periods and 2 standard deviations to trade back to the mode or most frequent price.
Give it a go, maybe you find it useful.
Only problem I see is the low volume. Makes it very hard to get accurate forecasts.

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