"Buy the dip" sounds simple until one coin dips… and never comes back 💀
I replayed our dip-buying module on 17 coins that died in 2021–2023. LUNA, FTT and friends.
What hurt the most wasn't the drop itself. It was buying MORE on the way down, because every new low looked like a discount.
Two boring rules fixed most of it:
1. if a coin's last trades keep losing, stop touching it for a while
2. if one coin crashes way harder than the whole market, no new entries
Without them, the 17 dead coins together cost −166% of the deposit over the test. With them: −13%.
The rule I live by now: before asking "how much can it make", ask "how much can one coin take from me".
#riskmanagement #crypto #trading
I replayed our dip-buying module on 17 coins that died in 2021–2023. LUNA, FTT and friends.
What hurt the most wasn't the drop itself. It was buying MORE on the way down, because every new low looked like a discount.
Two boring rules fixed most of it:
1. if a coin's last trades keep losing, stop touching it for a while
2. if one coin crashes way harder than the whole market, no new entries
Without them, the 17 dead coins together cost −166% of the deposit over the test. With them: −13%.
The rule I live by now: before asking "how much can it make", ask "how much can one coin take from me".
#riskmanagement #crypto #trading