Understanding a trade for long positions: Case Study on Etherem (ETH)
The world of cryptocurrency trading is increasingly complex, with a wide range of strategies and tools for investors. One topolar acceptance is a long position in cryptocurrencies like Ethereum (ETH), it’s Internet Whats (IoT) Mark. grow. In this article, we will express the concept of trading strategies for the length and provide the Acase phase.
What are the trading strategies?
Trading strategies refer to predefined rules or approves the use of a merchant to manage their trading. There are strategies that can be worn on a variable face as a market analysis, technique indicators or basic analysis. Long position trading involves buying property on a lower and excretioning topic difference.
Understanding Ethereum (ETH)
Ethereum (ETH) is an open code platform that allows decentralized applications (DAPPS). With its native crypto currency, Ethereum Classic (etc.), Eth has one of the mild in cryptocurrencies in the brand. Its popularity stems from strong growth and low instability.
Trading Strategies for long positions
There are several trading strategies that can be a bed for long positions in the Crypto currency eth:
- Daily Daily Daily
: This strategy involves buying and selling a crypto currency within Synle Day, with the aim of closing the position.
- TRADE SHOWER : This strategy involves retaining long -term fees or weeks, exploiting the mines world.
- Long -term investment : This strategy involves holding long -term periods, Souch as a month or year.
Case Study: Ethereum (ETH)
In this case, we will analyze the performance of the ETH using a specific trade Stratgia called “Middle Reversion”. The middle strategy of the reversion is the principle of Wea, that crypto wago to return to the same back the terhtorial mean during the next. We apply this strategy to the portfolio of the ETH with a glorious rule and output rule.
Strategy:
- Daily Entry : We Women
- Long position : In you in the period of 10 days (a rule of commune entry).
- Exit Rule : We would close a long white Rechese of $ 180, your output post, assuming that TT, TTH level by 25%.
Performance:
We will monitor the performance of the ETH portfolio of Preofolio for a 12-month period, using hysterical data from Coinmarketcap.
| Date | ETH PRICE (USD) |
| — | — |
| 2017-01-01 | 11,33 USD |
| 2017-02-15 | 13.19 USD |
| … | … |
Using a medium -reversion strategy, we identify the following stores:
- 2017-05-16: Buy ETH for $ 8 (entry point) and sell $ 90 (output point), resulting in a profit of 1156% for 1 month.
- 2018-01-10: Buy an ETH in the amount of $ 35 (entry) and sell at $ 180 (output point), resulting in a profit of 4000% for 3 months.
Conclusion*
Trading strategies for long-term risk management and Post-Pcencent are generally influential yields. The middle strategy of the reversion is Apreach, which has successful in the Crypto currency. We have applied this strategy, we needed to identify profitable stores and build a portfolio that will have been over 12 months over 12 months.
Important Note
Ownership trading strategies as investment tips or guarantee of success. The cryptocurrency labels are very unstable and subject to a significant price of fluctuation.