Beating The Market — How To Harvest The Volatily of Crypto Currencies

DoubleUp Beating the market — how to harvest the volatily of crypto currencies 2020
DoubleUp Beating the market — how to harvest the volatily of crypto currencies 2020

Chances are you are one of many who could not catch a break investing in cryptocurrencies. It all changes so often and so unpredictably that you end up selling at a lower price just out of fear that you would lose it all. Investing in crypto is like riding a rollercoaster where you never know if behind the bend the cart goes up or down.

Investing is, in its purest form, buying an asset to sell it at a higher price and realize a profit. With highly volatile assets, you can do this more frequently and at more significant price differences. Unfortunately, this sounds easier than it is.

When you see a price rise, greed kicks in, and you don’t want to sell because you want to earn more. Or your positions are too big, and when the price drops and instead of buying more at lower prices, you can’t hold on to your position and sell at a lower price and realize a loss. Repeat that few times and blame the whales or some other market manipulation. In the best case, you may have become a holder if you didn’t lose everything and gave up.

There are many strategies available, but all must follow a simple rule: buy low, sell high. But to buy low and sell high, you need something to buy with and something to sell at the same time. You need to split your funds between assets and currencies of interest.

A general rule is that you buy assets with only a portion of the available money, let say half. Then you place a series of limit orders above and below the market price within a price range. When the trend occurs, you will sell at a higher price, when the price reversion kicks in, you can buy back previously sold assets and buy more than he had before. Therefore each price movement, regardless of direction, provides gain on when the price reverses.

This strategy is manageable by hand / manually. All you need is some vague estimation of the long-term range, where the prices will most likely be. It will give you peace of mind, knowing that in the worst case, you can end up with a lot more crypto, or make some profits. Even if the price wobbles around, you will end up with a profit.

This is both time-consuming and not optimized to achieve maximum gains. This is exactly why DoubleUp was developed. It follows the same  simple strategy, but with a much more fine-tuned algorithm that also has some additional built-in features, such as following the prices, an easy-to-understand overview of performance and a complete pallet of backtests. You can run multiple trading pairs at once and is very simple to use. It’s completely free to start, and you don’t send your crypto anywhere; keep it on your account at the exchange. Each setup uses a different subaccount at the exchange and connects through API – you restrict the API access in your exchange not to allow withdrawal of funds, so there is never any fear of losing your assets. DoubleUp makes sure you are always up to date with what’s going on trough both a Telegram bot and e-mail notifications.

And it works.

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Here is just one backtest for the most popular trading pair on Bistamp, Bitcoin / U.S. dollar, in one year period (you can check any desired setting, trading pair and period in the application itself).

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Beating The Market — How To Harvest The Volatily of Crypto Currencies

In the beginning, designated funds are equally split between the U.S. Dollar and Bitcoin, at the starting price around 10,000 USD per BTC. You can specify any range; however, in this example, a 30% trading range was selected with three steps. Each step is a limit order, so three limit buy orders and three limit sell orders, all within chosen range to both sides.

That’s it, after the Start button is pressed, DoubleUp will make sure you always buy low and sell high. Using our application, we increased the amount in USD by 37% and the amount in BTC by 60%. Total traded volume was around ten times the initial investment, so trading fees do tend to reduce the overall return slightly. However, some exchanges don’t charge any fee for limit orders.

Trading is worse than a zero-sum game. The only one that is guaranteed to win is the exchange. With DoubleUp, you have a perfect chance of beating the market and other traders over the long run as you will always buy low and sell high.

We meticulously developed the strategy to accumulate more assets over time, systematically. It takes advantage of high volatility and receives assets from impatient and greedy traders, make sure you are not one of them – register for free now and start your setups on Bitstamp and tokens.net exchanges in just a few simple steps. More exchanges will follow soon.