Disclaimer: The information from this article and analysis is for informational purposes only. It is not intended to be an investment or financial advice. Seek a duly licensed professional for investment advice.
May hasn't been long. We stopped our activity at the end of April and weren't able to resume it until the middle of May, I based my settings in what I got from the Providers' Analytic view, but it didn't work. I lost 5.76% of my entire portfolio, with just 18 positions.
I'll be brief this month. Eighteen positions don't need too much analysis; however, I got a couple of useful takeaways, that I'll detail below.
I'm still 4.88% above my initial investment (5 months ago), so comparing with what you can get from a bank, isn't so bad.
I have commented a couple of times that I don't like Tether (USDT), due to the controversy around it, so I looked for another stable coin and thought that TrueUSD (TUSD) could be a good option. Unfortunately, there aren't many signals for TrueUSD, so I thought it could be a good idea to increase my position size to cover as much balance as possible.
The thing went well until it didn't:
I can take two takeaways from what happened this month:
- Play with small position size.
- Don't touch it.
The first one is to split the risk, I wanted to cover my full balance, and at the end, I put all of them on risk. I could only play with 2 concurrent positions because the DCAs, which I don't like.
The second one is, once you have decided to do something, do it. The worse lost that I took, the one from the last day, was a 13% loss from a $3k position. Two DCAs were triggered, and then my position was close to the stop loss target, I saw it, and I decided to add a third DCA, risking almost my entire balance, and finally exiting at a considerable loss (around $400).
What I take positively from this month:
- I love trading with stable coins.
- The new Providers' Analytic view.
Stable coins are way easier to account. You know what you are earning/losing with a single glance. You don't need to convert your profits to USD or anything to know exactly how much did you make (or lost). It's just my personal feeling.
The new Providers' Analytic view allows me to take my conclusion based on real data, and it will enable you to get so much detail that you will find remarkable insights. For example, with the new Signals' Analytics view, in my opinion, averages aren't so attractive, it's better to sort by lows/highs and see how the signals have been performing for a given timeframe. I'm testing several providers based on this new approach.
I gave another opportunity to DCAs, but I don't like them at all. It doesn't allow me to optimize my balance because I always have to have an unused balance to cover them. Also, your increasing your risk exponential y with each target. Again, this is just my opinion, and so far, I haven't done very well, so...
Unfortunately, if I want to split my risk I need a coin with a bigger number of crypto signals, which TUSD doesn't provide. So, I'll be trading with USDT from now on, and you know how I dislike it...
May has been a short month, without much planning, so let's see how June works.