Which strategy saved you in this recent flash crash? If I say, it will not be wrong that only 10% of the investors are save during this crash. Majority are the victims of this sharp decline. Who are those 10% investors? They were the ones who did sell their holdings by chance before the crash or investors who were waiting to buy at dip but were sleeping or busy in their works.
The rest 90% of the investors did not protect themselves. This was the flash crash which I think was the second after the Corona one. A sharp decline which takes the prices very down more then 60%. If I talk about #hive, it reaches the level of $0.03 which is just unbelieveable.
What is the main purpose of my this post? I want to bring your attention towards the strategy which I told around 2 weeks ago. Here you can read this post. I discussed about a trading bot strategy which works in every market conditions. How it is possible?
My Bot That Trades 15 Long and 15 Short Positions
Let's explore it. I am working on making trading bots, any kind of bot you need. I also offered to sell at cheapest price as compared to other markets like #fiver and others. I designed a bot in which it took trade 30 coins all in particular sequence and instantly. The whole buying and selling might take only 1 minute.
What I told was that bot will trade the top 15 gainers and losers (skipping top 5, which are extremely volatile). I given instruction to long top 15 gainers and short 15 losers. After running a command prompt, the bot starts taking 15 long positions and 15 short positions. It makes me a form of index trading and I dont need to close coin one by one rather I will check the whole index.
If the whole index is in profit, I close all. But, if incase its in loss, I will wait for recovery or for the next layer to take positions. I will run bot 3 times until 3rd layer is invested. There is a huge chance of recovery after investing the third layer. In worse condition (which has only 10% chance) the coins goes againt the trend then I have set 2% of Stoploss.
What is the benefit of this type of trading? Keep in mind that I do long those coins which are bullish with respect to market bias and short all those coins which are bearish with respect to the trend bias. Gainers will keep on going upside while losers will keep on going downside which gives me profit.
Why My Portfolio Didn’t Collapse in the Flash Crash
Out of 30 coins if only 16 coins come in favor then overall I will be in profit and the probability is very high. Lets assume this flash crash... All the gainers came down by 60% which gives me a loss of overall 60% and on the other hand losers also came down by 60% or around. During that flash crash, my portfolio was almost balance or in slight profit or loss.
This is because if gainers results in loss then on the other hand losers results in profit. This works like a hedge trading which keeps on balance all the time. Now, the question is, what was the profit during this sharp crash? You might have seen that a quick recovery happened with few minutes and all long sides recovered well while the bearish coins did not recoverd well because their trend was already bearish.
According to my calculation, If I had opened the trade I would definitely have made 5% profit. This is how the strategy works in every market condition. I deeply thought about this strategy and came to the conclusion that it might be the only strategy which had survived during this flash crash.
If you are interested with this strategy, I advice you to first test it with little amount and when you get satisfied then you can go with your full amount but must follow the strategy as explained in the previous post (link given above). Also anyone who have other idea can share with me, I will work on it and will make a proper bot.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Those who will interact will get my 100% upvotes. My staking is increasing. Thank you all for your time reading the content.
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IMAGES AND GIF TAKEN FROM CANVA, EDITED IN CANVA
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