The long-term cryptocurrency trading strategy can be used alone or in combination with other local strategies. If you use this strategy separately, you can either take a very good profit for a period of 3 months to 6 months, or just waste time. Therefore, we use a long-term strategy in pair with medium and short-term.
Cryptotrading long-term strategy – the main goal
The main goal of long-term cryptocurrency strategy is to squeeze the maximum profit out of the global wave of price movements. It doesn’t matter whether it’s a price movement within global consolidation or a strong long-term trend.
To ensure the main goal of the strategy, we use the following principles:
- To trade on this strategy, we use funds received from the profits of other local strategies (we are ready to lose these funds in case of global error);
- Trade is conducted with a marginal leverage;
- The main position is constantly increasing (on corrective counter-trend price rebounds);
- The position is selected after placing a stop order on the previously typed position;
Profits are fixed only if the global goal is achieved (other trading strategies work at local critical points).
Advantages and disadvantages of long-term trading strategy
Using a long-term crypto trading strategy we can:
- In fact, by one long trade, lasting 3 months, significantly increase the deposit:
- Do not make unnecessary (often erroneous) movements during unclear local trading situations:
- Constantly monitor the development of the main forecast and the danger at critical points (when you check your forecast on your capital – this is a completely different attitude to analytics).
However, this strategy has serious shortcomings, which we correct with the help of other local strategies:
- In the event of a global error, the long-term trade deposit suffers great losses. But, such errors may be few during the year (catch the same global waves):
- The deposit does not become mobile at all, as the position is held either until the victorious end or until the global trend changes:
- Being in a global position, you can “sit back” profits, and record either break-even or small profits (it all depends on where the critical point, which indicates a global change in the trend). On the one hand, is this a problem? On the other hand, if you sit in a position for six months and then break even – this is a rather unpleasant result. Especially, if the potential profit was good enough.
How to deal with the shortcomings of a long-term strategy
There are medium and short-term strategies to avoid potential gains in the local rebound against the trend. These strategies do not “freeze” the deposit in one position. In addition, in case of error, the losses are controlled and allow without further financial and psychological losses to continue trading according to plan. It is thanks to the medium-term strategy that it is possible to insure the profits of the global position on the long-term strategy and predict the global reversal of the cryptocurrency market.
General parameters of trading long-term cryptotrading strategy
- Trade only on a global trend:
- The main timeframe is weekly:
- Selection of positions – in global liquidity zones only in the direction of the trend:
- The beginning of position selection is possible only after setting the break-even point to the starting position:
- Closing the position is possible either when the profit is triggered, or when you reach the critical point:
- Entry into the position (priority or selection) from 100% to the deposit to 300% to the deposit (from the first leverage to 3 leverage). It all depends on the market situation and the risks that are currently ready to take on deposit:
- The main position is divided into at least 3 cryptocurrencies. Only priority cryptocurrencies are used when selecting a position.
Let’s summarize. If you are interested in a good long-term profit, you are ready to wait and not touch the deposit for a long time – this cryptocurrency strategy will suit you. The strategy refers to high-risk trade and is not the basis of our overall strategy. Do you have a question? Write to us!