LINK is hot, and how about ETH? Ranged Market Grid Trading

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(Edited)

Yesterday we got a great set of questions on our blog about DGB grid trading, from the user @forexbrokr, which we will show here for your ease of understanding:

These are some very good questions. We actually do not square up to BTC ever, although the bot works in such a way that the profits accumulate in BTC. If the price of DBG were to rise above our range, we could be left with only BTC as well. Inversely, if BTC would take off and DGB would drop, we could end up holding 'the bag' on DGB. So we are very careful on which tokens we trade, only ones we are keen on accumulating either way. But we manage position sizing carefully as well, not going 'all-in' on any trade, plus range management.

Let's take a look at a recent winner - LINK vs ETH

LINK/ETH

Recently LINK has been hot. It has been recommended by many sources, and after reading a small amount about it, we decided that we wouldn't mind some exposure. By range trading, we can get different levels and types of exposure than just holding a token. Remember that range trading with grids is more a bet on a certain type of volatility, and it doesn't have to be against BTC! Other popular tokens are USD, USDT and ETH.

In the above case, we noticed a giant upward accumulation wick on LINK/ETH, and we played a hunch and put the bot to work. Boy did it do its job. But now, it is gasping at the top of the range.

Like a fish out of water, when the the price comes back down into our range the bot continues to operate, so for now, we will watch for a 61% retracement and hopefully some aftershocks of this big move. If we are lucky, and ETH surges in the meantime, we can walk this same range back down again. In this way, we might completely independicize our earnings from USD prices. The same can be done with BTC, though its surges have been less predictable that ETH's lately.

Of course is we are 'unlucky', we will get stopped out into ETH, and will only have our reserve holdings of LINK to ride up to whatever moon it is headed too. That would be considered the 'worst case' scenario.

We hope this answers the question, please ask more questions on any of our posts, they are motivation for more content!

For those of you interested in the Bitsgap set of tools, that link is our referral link and great things happen for us if you were to sign up and buy the service after clicking our link.

Keep powering up LEO, and keep building the future! This is not advice, its just History.

Posted Using LeoFinance



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