RATIO TRADING
POST 1
Guys, let me tell you about Ratio trading. It's one of the Spot trading strategies I have employed for years now and to which I had tons of success with.
A lot of people think that trading USDT ---> Crypto -----> USDT and profiting is the way to go. This is one way, however, the problem of being in USDT for most of the time, is that it is of course STATIC.
Which is great when a crypto crash happens, but horrible when a Bull run goes off and you're sitting in USDT.
Part of my strategy is having my budget in crypto, where I trade one crypto for another based on strength and back again. Let me give you an example.
As I mentioned, I like BCH and TAO. They both have similar coin supply, they're both top coins and both move up and down aggressively and I like that kind of volatility. I have been trading them successfully back and forth over these few months. Here's the idea:
Let's say you have 2 BCH, and at the time BCH is worth $320 each, while each TAO is worth $250 each.
What I normally do, is compare their ratios over the past year or sometimes over two years, but I mostly use their price log for the past years.
The ratio is 1 BCH -----> 1.28 TAO
Now I would check if for the past year Vs. the average, has this been one of the highest ratios for BCH Vs. TAO? If the answer is YES. Then I would trade my 2 BCH for 2.56 TAO and I would wait for TAO to eventually close the gap where 1 TAO ------> 1 BCH.
This is when I would sell my TAO back to BCH, and my profit would be that 0.56 TAO which I would add to my USDT profits.
I have been doing this successfully for the longest time now and continue to build my portfolio.
There are some things you need to be careful of though, and this is what I will touch on in my next post.
SO don't forget to like and follow me for content.
And if you trade $TAO or $BCH I would eternally be grateful if you could click on those tags and trade through them, as it immensely helps me to earn through the content I write here.
Thank you so much.
* PLEASE ALWAYS DYOR FIRST!
POST 1
Guys, let me tell you about Ratio trading. It's one of the Spot trading strategies I have employed for years now and to which I had tons of success with.
A lot of people think that trading USDT ---> Crypto -----> USDT and profiting is the way to go. This is one way, however, the problem of being in USDT for most of the time, is that it is of course STATIC.
Which is great when a crypto crash happens, but horrible when a Bull run goes off and you're sitting in USDT.
Part of my strategy is having my budget in crypto, where I trade one crypto for another based on strength and back again. Let me give you an example.
As I mentioned, I like BCH and TAO. They both have similar coin supply, they're both top coins and both move up and down aggressively and I like that kind of volatility. I have been trading them successfully back and forth over these few months. Here's the idea:
Let's say you have 2 BCH, and at the time BCH is worth $320 each, while each TAO is worth $250 each.
What I normally do, is compare their ratios over the past year or sometimes over two years, but I mostly use their price log for the past years.
The ratio is 1 BCH -----> 1.28 TAO
Now I would check if for the past year Vs. the average, has this been one of the highest ratios for BCH Vs. TAO? If the answer is YES. Then I would trade my 2 BCH for 2.56 TAO and I would wait for TAO to eventually close the gap where 1 TAO ------> 1 BCH.
This is when I would sell my TAO back to BCH, and my profit would be that 0.56 TAO which I would add to my USDT profits.
I have been doing this successfully for the longest time now and continue to build my portfolio.
There are some things you need to be careful of though, and this is what I will touch on in my next post.
SO don't forget to like and follow me for content.
And if you trade $TAO or $BCH I would eternally be grateful if you could click on those tags and trade through them, as it immensely helps me to earn through the content I write here.
Thank you so much.
* PLEASE ALWAYS DYOR FIRST!