Most traders say they want to buy at the bottom. But when the market actually falls, many have already spent all their available capital at previous levels.
I would build the strategy differently.
Suppose I have $1,000 that I’m willing to invest in BTC and ETH on the spot market. I wouldn’t try to guess the bottom; I’d allocate the money in advance.
BTC — $500
$125 — at $81,000
$125 — at $79,000
$150 — at $76,500
$100 — at $73,500
ETH — $300
$75 — at $2,350
$75 — at $2,250
$75 — at $2,150
$75 — at $2,050
Reserve — $200. I won't touch it until it's clearer what's happening with the market.
Why? If the price keeps falling, the next buys will be cheaper than the previous ones. If the market reverses sooner, some orders will remain unfilled. That's the price of trying to manage risk, rather than chasing every candle.
But there's one rule: if the fundamentals deteriorate sharply, I won't mechanically execute the entire plan. A limit order is a tool, not an obligation to buy a falling asset.
All amounts here are an example strategy, not a forecast or a buy signal. Price levels should be checked against current quotes.
And now a question for those who trade spot: do you prefer buying in portions on every dip, or waiting for confirmation of a reversal, even if that means getting in at a higher price?