Understanding Trading Strategies For Long Positions: A Case Study On Ethereum (ETH)
Understanding negotiation strategies for long positions: a case study about Ethereum (ETH)
The world of cryptocurrency trade has become a complex increase, with a wide range of strategies and tools available to investors. A popular approach is to take long positions on cryptocurrencies such as Ethereum (ETH), which are gaining popularity as the Internet of Things Market (IoT) continues to grow. In this article, we will explore the concept of negotiating strategies for long positions and will provide a case study of Ethereum performance using a specific strategy.
** What are negotiation strategies?
Negotiation strategies refer to predefined rules or approaches used by traders to manage their investments in the market. These strategies can be based on various factors such as market analysis, technical indicators or fundamental analysis. Long position negotiation involves buying assets at a lower price and selling at a higher price to profit from the difference.
Understanding Ethereum (eth)
Ethereum (ETH) is an open source blockchain platform that allows developers to create decentralized applications (Dapps). With its native cryptocurrency, Ethereum Classic (etc), ETH has become one of the most commonly used cryptocurrencies in the market. Its popularity stems from its strong growth potential and low volatility.
Negotiation strategies for long positions
There are serious negotiation strategies that can be used for long positions in cryptocurrencies such as ETH:
- Day Trade : This strategy involves buying and selling a cryptocurrency within a single day, with the aim of closing the position before the closing of the market.
- Swing Trading : This strategy involves maintaining a long position for a few days or weeks, taking advantage of short -term price movements.
- Long Term Investment : This strategy involves maintaining a long position for a long time, such as months or years.
CASE STUDY: ETHERUM (ETH)
In this case study, we will analyze the performance of the ETH using a specifications negotiation strategy called "average reversal". The average reversal 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 an ETH portfolio with a daily input and output rule.
The strategy:
- Daily entry : We would identify the price of ETH at the end of each negotiating day, which is used as a purchase point.
- Long position : We would open a long position in the ETH at the point of purchase for each period of 10 days (a common input rule).
3.
Performance:
We will track the performance of our ETH portfolio over a 12 -month period using historical coinmarketcap data.
| DATE | ETHE Price (USD) |
| --- | --- |
| 2017-01-01 | $ 11.33 |
| 2017-02-15 | $ 13.19 |
| ... | ... |
Using our average reversal strategy, we identified the following negotiations:
- 2017-05-16: Buy ETH for US $ 8 (input point) and sell at $ 90 (output point), resulting in a profit of 1156% in 1 month.
- 2018-01-10: Buy ETH for US $ 35 (input point) and sell at US $ 180 (output point), resulting in a 4000% profit in 3 months.
Conclusion
Negotiation strategies for long positions can be an effective way to manage risks and potentially generate investment returns. The average reversal strategy is a popular approach that has shown to be successful in the cryptocurrency market. By applying this strategy, we have been able to identify profitable negotiations and build a portfolio with a strong history over 12 months.
IMPORTANT NOTE
Negotiation strategies should not be considered investment advice or guarantee of success. Cryptocurrency markets are highly volatile and are subject to significant price fluctuations.
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