Polygon is considered the leading Ethereum scaling solution and has been a fast mover and a popular pick for investors. I am using a scaled entry strategy on Polygon. I call it the crypto Martingale.
In this strategy, you choose several supports and buy at each one, tripling your position size each time. It requires a little math in advance in order to make sure you have enough money to buy at all the levels you've chosen.
Your first buy ends up being quite small and your last buy ends up being quite large. The small early buys help strategically avoid FOMO without taking on too much risk, and the large later buys ensure that you make a lot of money if there's a really big dip.
Here's the math: figure out what your budget is and divide that by 40. We'll call that B1, because that's how much you spend on your first buy. The next buy amounts we'll call B2, B3, and B4.
B2 = B1 * 3
B3 = B1 * 9
B4 = B1 * 27
Polygon just hit my first buy level at 1.57. The next levels are at 1.21, 0.89, and 0.45. Note that these are Coinbase prices and that prices vary slightly from exchange to exchange.
I have used this strategy to good effect as an alternative to dollar-cost averaging for market timing.
In this strategy, you choose several supports and buy at each one, tripling your position size each time. It requires a little math in advance in order to make sure you have enough money to buy at all the levels you've chosen.
Your first buy ends up being quite small and your last buy ends up being quite large. The small early buys help strategically avoid FOMO without taking on too much risk, and the large later buys ensure that you make a lot of money if there's a really big dip.
Here's the math: figure out what your budget is and divide that by 40. We'll call that B1, because that's how much you spend on your first buy. The next buy amounts we'll call B2, B3, and B4.
B2 = B1 * 3
B3 = B1 * 9
B4 = B1 * 27
Polygon just hit my first buy level at 1.57. The next levels are at 1.21, 0.89, and 0.45. Note that these are Coinbase prices and that prices vary slightly from exchange to exchange.
I have used this strategy to good effect as an alternative to dollar-cost averaging for market timing.
Comment:
Quick update: we've hit my first two targets, which means that I've spent 1/10th of the money I set aside for this trade. That's the downside of the crypto martingale, is you can spend a lot of time just waiting in cash for buy orders to trigger. :)
Comment:
We've now officially hit my third target, bringing my allocation to 3/10 of the money I set aside for this trade. I think there's a fair chance we'll hit my fourth target before we start the next bull cycle in crypto.
