It’s been a couple weeks since I published my last case study but I didn’t stop trading and keeping track of my results. I have adapted my strategy based on the data that I collected from my last case study and have found some ways to reduce the time it takes me to place my trades. This study was less profitable but I am still quite satisfied with the results since this study was only a 1 week span and I still managed to produce a profit greater than 10%.
Case Study Parameters
Case Study Term: May 9th – May 15th (1 Week).
Entry Strategy: Buy .01 BTC every single time I receive a buy signal.
Exit Strategy: For this particular case study, I sold off any given position if it had increased at least 20% but tried to get at least 40% before I sold. I am also holding every coin that is currently at a loss in an attempt to sell it at a later date at a profit.
Total Buy Orders: I received a total of 88 buy signals and bought .01 BTC at each one for a total of .88 BTC invested.
Gross Return: 67/88 positions were profitable. So far, my gross return on investment is 1.07 BTC on an initial investment of .88 BTC. That’s a gross profit of .19 BTC / 21% in 7 days.
Costs & Overhead: I paid .06 BTC for a 30 day membership to get the buy signals.
Net Profit: My gross profit of .19 BTC – .06 BTC for the buy signals = a net profit of .13 Bitcoins in 7 days. That’s a 14.77% profit in just 7 days and I still receive the buy signals for another 23 days.
In just 7 days, I have learned even more about how the crypto markets work. Here’s a couple things that I noticed and will adapt my strategy in the future.
More Powerful Spreadsheet Commands: When I first started off I only had some basic understanding of how Google Sheets work but now, just a few weeks later, I have learned quite a bit about how they can be used to reduce the amount of time I spend to make trades. I have used the conditional formatting feature to change the color of the cells based on what my profit margins are. On my last study, I only used green and red to show me whether or not a position was profitable. Now, with the help of conditional formatting, I know my profit and loss simply by looking at the color of the cells.
My next move is to figure out how the Poloniex API works so I can import live price tickers into my spreadsheet for real-time comparison to each buy signal. This will save me so much time when it comes time to sell off a position and might also help me with making some trades without the need for a buy signal. This is going to be very important in the future because one of my upcoming case studies will not be focused on trading on Poloniex.
Hold Currencies vs. Taking Loss: On my last study, my exit strategy was to sell 100% of my positions at the end of the study but this time I took a different approach. I am holding every currency until it is profitable. This might take me a while but I think that most coins will come back around within about 60 days. I can’t be sure so I will reevaluate these positions, around the 9th of June with a follow-up case study.
My Past Case Studies
I plan on doing 2-4 case studies each month with each study using a slightly different strategy. If you would like to learn more about the other studies that I have conducted, please take some time to read through them below.
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What tools do you use to make the most calculated trades? Let us know with a comment below or a tweet at @BitcoinReasons