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What do you think about this strategy? Bitcoin’s “closing” low for the recent decline is around 31,600 and current price is 32,200. Buy GBTC and stay long as long as bitcoin’s closing closing price is above 31,500. Bail if it closes under 31,500. If I bail, get back long with a close over 31,500. Rinse and repeat if necessary until the next bull wave takes off.
While I believe bitcoin will prove to be worthless in the long run, I am convinced there are hoards of greater fools out there to make a run at a new high if not much further.
Provided I see a buy SIGNAL that matches my criteria and filters, that’s exactly how I do trades. I set my charts to display the last low, so I can set stops in an instant.
The ideal situation for me is to get that signal before price exceeds low + 10%. That’s the limit of the loss I allow trades to take, in full size.
Obviously it requires finely tuned signals, and speedy reactions when you get them before it gets away.
You guys may have a reasonable strategy for trading liquid assets with deep markets and transparency. Bitcoin isn’t transparent, transactions are slow, so don’t think it’s always going to work like stocks and commodities on major exchanges. Caveat emptor.