Long position trading strategies: Ethereum (ETH) Case Investigation
The cryptocurrency trading world has become more and more complex and has many strategies and tools available to investors. One popular approach is long positions in cryptocurrencies such as Ethereum (ETH), which are gaining popularity because the market for the Internet of Things continues to grow. In this article, we will examine the concept of long -standing trading strategies and provide a case analysis on Ethereum, using a specific strategy.
What are the trading strategies?
Trade strategies indicate pre -defined rules or methods that traders use to manage their investment in the market. These strategies can be based on various factors such as market analysis, technical indicators or main analysis. Long position trading includes the purchase of assets at a lower price and sell it at a higher price to make a difference.
Ethereum understanding (ETH)
Ethereum (ETH) is an open source blockchain platform that allows developers to develop decentralized programs (Dapps). With its native cryptocurrency, Ethereum Classic (ETC), ETH has become one of the most widely used cryptocurrency market. Its popularity is due to strong growth potential and low variability.
Long position trading strategies
There are several trading strategies that can be used for long positions in cryptocurrencies such as ETH:
- Day Trading
: This strategy includes the purchase and sale of cryptocurrency in one day to close positions against the market.
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Case Analysis: Ethereum (ETH)
In this case analysis, we will analyze the performance of the ETH using a specific trade strategy called “average reversion”. The average reverse strategy is based on the principle that cryptocurrency prices tend to return to their historical average values over time. We will apply this strategy to the ETH portfolio with the rule of daily introduction and exit.
Strategy:
- Daily post : We would set the price of ETH on the end of each trade day, which is used as a purchase point.
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- Output Rule : We would close a long position with a price of $ 180, our outlet, assuming that it exceeded this level at least 25%.
performance:
We will monitor your ETH portfolio performance over a 12 -month period using historic CoinmarketCap data.
| Date | ETH Price (USD) |
| — | — |
| 2017-01-01 | $ 11.33 |
| 2017-02-15 | $ 13.19 |
| … | … |
Using your average return strategy, we have identified the following transactions:
- 2017-05-16: Purchase ETH for $ 8 (entrance point) and sell for $ 90 (output point), which is 1156% more than 1 month.
- 2018-01-10: Buy ETH 35 USD (entrance point) and sell for $ 180 (outlet), which is 4000% per 3 months.
Conclusion
Long duties trading strategies can be an effective way to manage risks and possibly generate a return on investment. The average reverse strategy is a popular approach that has been proven to be successfully operating in the cryptocurrency market. By applying this strategy, we have been able to determine profitable transactions and create a portfolio with extensive experience in 12 months.
Important Note
Trading strategies should not be considered as a consultation with investment or a guarantee of success. Cryptocurrency markets are very unstable and can be significant for price fluctuations.