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Well, think about it in the context of a rising volatile asset. I think what OP is recommending is to identify "entry points" and "exit points". - Buy as the
by frikk 9y ago
Well, think about it in the context of a rising volatile asset. I think what OP is recommending is to identify "entry points" and "exit points".
- Buy as the asset is rising above 10 month MA (and likely will continue to rise, maybe for weeks, months, years)
- Sell as the asset is cooling off (falling below 10 month MA). Don't get "back in" until the asset is heating back up.
With something like bitcoin, this idea would be to ride up a large market bull, but then get out until it looks like it is happening again. If you play with the Moving Average[0], you can see that this strategy would basically have you enter in late 2013, sell in mid 2014, and not enter again until late 2015, then hold all the way. Not exactly a riveting strategy, but OP didn't claim as much.
[0] https://bitcoincharts.com/charts/bitstampUSD#rg1460zigDailyztgSza1gEMAzm1g300zm2g25zv https://bitcoincharts.com/charts/bitstampUSD#rg1460zigDailyz...