ondra-novak
commented
6 years ago Hello.
The main objective of this strategy is to maintain a balance between the currency and the asset. If you started - for example, 1 BTC bought at 10000 USD, the strategy expects you to have another 10000 USD as a reserve to cover any price drops (by buying more assets at a lower price). The strategy promises that you will not exceed the total budget of your reserves (you could not buy more than 10000 USD altogether, even if the price drops to almost zero - try :))
So the main advice at the beginning is: buy half, hold the other half as a reserve.
You should trade at prices where the trend changes. Because no one is able to find the exact top or exact bottom, the mistakes are not so painful, you can still sell something at a higher price or buy at a lower price.
If you do not follow the advice by selling more than recommended, your portfolio is no longer balanced. Then the advices are trying to correct this situation. To buy at higher price does not look wise unless you really expect the price is starting to pump. (because you have in fact sold more than advised) Then the size of the trade is important and you should follow the advice and buy the advised amount and return your portfolio back to the balance.
If you wish to leave the strategy by selling most of your assets, you should
- Sell by following the advice to return the portfolio back to the balance.
- Sell the rest of the assets with the OOS option. This option resets the strategy by removing both the assets and the currency from the budget
Hope I helped you
jalso
Scenario: steps 1-10 : the price of asset is increasing, i am selling continuously as the strategy suggest step 11: the price hit the target price, I am selling 95+% of my assets. step 12: the price of the asset still increasing, the strategy suggest to buy back at higher price than i sold in the previous step.
I dont know if it is a bug, or selling the majority of assets was against the rules.