Well, let's look at this topic today. I understand that for many it will seem premature, but still, let's figure out what strategies there are.
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Profit–taking in a growing market is an art form. If you sell too early, you'll miss out on growth. If you drag it out to the last, you will be left with a drawdown.
The ideal strategy is to fix the ladder, gradually reducing the position as the price increases.
How does it work?
1. Fixing on percentage growth
If the asset has grown by X%, we fix Y% of the position. Example:
• +50% growth → we fix 10%
• +100% growth → fix 20%
• +200% growth → fix 30%
• +300% growth → fix the remainder
This method is good because you capture part of the profit in the early stages, but leave the position in case of continued growth.
2. Fixing by resistance levels
We focus on the key levels:
• Previous highs – we fix 15-20%
• Historical high – we fix 20-30 more%
• Fibonacci 1.618 / 2.618 – fix the remainder
This approach is suitable for those who focus on technical analysis.
3. Fixing by market metrics
We use overheating indicators:
• MVRV Z-Score > 7 → fix 30-50%
• RSI > 85 on weekly TF → fix 20-30%
• BTC dominance drops sharply → we fix alts in BTC
4. Cycle-based fixation
• We don't sell at the beginning of growth
• In the middle of the cycle, we fix 20-30%
• At the first signs of overheating (violas fly away, newcomers enter, HYPE in the media) we fix 50%
• Final fixation on parabolic growth
The main rule is to fix it according to a pre-thought-out plan, not according to emotions.☝️
If the market continues to grow, we are happy that we are still in position. If it falls, we are glad that we fixed it on time.
Which strategy is closer to you? Share it in the comments!