Tezos is outperforming the market again, this time in terms of rapidity of descent. Hovering just over $3.10 at the time of writing, the controlled descent seems for the moment at least to have halted after bottoming out around $3.07 earlier, but I’m personally hoping we see it his $2.xx so that I can get a great price when my next ACH deposit clears the Coinbase Pro service and becomes available (should happen any minute now!).
Long term signals, of course, remain bullish, and there is nothing in the news to cause a 10% decline, so can we just conclude that this is normal fluctuation in price? The fact of the matter is that there’s no way of knowing for sure, but it’s likely that last night’s sell-off has simply coalesced into more profit taking today. A lot of people have picked up 2-10x growth and frankly, would be a bit crazy to stay in much longer unprotected, given the 52-wk lows on the books. I believe more will see the low prices resulting from the overall market slump and decide these tokens are on sale, buy heavily, and cause a new price spike possibly to a new YTD high, but only by waiting and watching can we learn for sure.
I’ve only been watching with interest for about 25 days at this point, but I’m playing largely with house money after pulling out my initial investment to pay bills and so on. As such, I’ve decided to use my fascination with Tezos to help keep my content here targeted. The main interest I have in it is in crypto more generally, as a way to get paid for writing online. That being said, I’m planning to try out a new algorithm today if we get a repeat of last week’s resurgence following the low.
This Week's High-Risk/High-Reward Experiment With House Money
I’ve done passably well at producing a few shares here and there by selling peaks and buying dips, but I’ve squandered most of the proceeds by making bad bets. I’m sure this isn’t an uncommon experience, and so I’ve decided to implement (and iterate upon) a trading algorithm. This week’s algorithm will be the quarter up, dime down strategy. I’ll try to set my initial sell limit at whatever the trough for the day turns out to be plus a quarter, then drop $.10 and put a buy limit in.
If it works as well in practice as it does on paper, it should be possible to add about 15% to my share count by the end of the day. As nerves get the best of me sometimes and I do really dumb things sometimes, it may work out badly for me. However, it’s the best I’ve come up with to ensure I stay in the game during extreme volatility in the market.
As always, I’m eager to hear everyone’s thoughts. How are you planning to weather the ongoing storm? How will you maximize your holdings during the market’s seemingly inevitable recovery from this minor downturn?
