Understanding Trading Strategies For Long Positions: A Case Study On Ethereum (ETH)

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Understanding negotiation strategies for long positions: Casual Exploration of Ethereum (ETH)

The world of cryptocurrency trade has become increasingly difficult and investors have a wide range of strategies and tools. A popular approach is a long position on cryptocurrencies such as Ethereum (ETH), which has gained popularity as the Internet of Things (IoT) continues to grow. In this article, we will study the concept of a long position negotiation strategy and provide a casual study of Ethereum performance using a particular strategy.

What are negotiation strategies?

Trade strategies apply to predetermined rules or approaches used by traders to manage their market investment. These strategies can be based on various factors such as market analysis, technical indicators or basic brand. Trade in a long state means buying assets at a lower price and sells them at a higher price to benefit from the difference.

Understanding Ethereum (eth)

Ethereum (ETH) is an open source blockchain platform that allows developers to create decentralized applications (DAPP). With its native cryptocurrency, Ethereum Classic (etc.) ETH has become one of the most commonly used cryptocurrencies on the market. Its popularity results from the strong potential for growth and low volatility.

Commercial strategies for long positions

There are several negotiation strategies that can be used for long positions in cryptocurrencies such as ETH:

1
Daily Trade : This strategy is related to the purchase and sale of cryptocurrency within a day to close the position before market closure.

• Balance Sheet Trade : This strategy is linked to a long position for a few days or weeks with the benefits of short -term price movement.

3
Long Term Investment

: This strategy involves a long -term position to take a longer period, such as months or years.

Case research: Ethereum (eth)

In this case, we will analyze the ETH’s performance using a special negotiation strategy called “Mary Reverse”. The average reverse strategy is based on the principle that cryptocurrency prices tend to return to historical average values ​​over time. We will use this strategy for the ETH portfolio with the daily entry and exit rule.

Strategy:

1
Admission every day : We would identify the price of the ETH at the end of each negotiating day, which is used as a point of purchase.

• Long Position : We open a long position at the ETH Purchase point for every 10 days (a common input rule).

3
Exit Rule : We closed the long position when the price reaches $ 180, our output point assuming that it exceeded this level by at least 25%.

Performance:

We will track our ETH portfolio performance within 12 months using historical coinmarketcap data.

| ETH PRICE DATE (USD)

| —- —–

| 2017-01-01 | USD 11.33

| 2017-02-15 USD 13.19

| … …

Using our average reverse strategy, we identified the following transactions:

• 2017-05-16: Buy ETH USD 8 (input point) and sell $ 90 (starting point), resulting in a 1 month profit of 1156%.

• 2018-01-10: Buy ETH for $ 35 (entry point) and sell $ 180 (starting point), resulting in a 4000%profit in 3 months.

Conclusion

Long positions for negotiating strategies can be an effective way to manage risks and potentially generate return on investment. The average reverse strategy is a popular approach that has been proven as a successful cryptocurrency market. By applying this strategy, we were able to define profitable transactions and create a portfolio with a strong achievement within 12 months.

IMPORTANT NOTE

Trade strategies should not be considered an investment board or a guarantee of success. Cryptocurrency markets are highly volatile and are subject to significant price fluctuations.