Portfolio Stability - Advanced Strategies
Mis à jour
Have you ever wondered why, during a crisis, BTC prices plummet significantly while altcoins are also massively sold off, even if the crisis primarily impacts BTC (such as the Mt. Gox crisis)?
The answer lies in the advanced strategies employed by crypto whales, who manage large, diversified portfolios.
Crypto whales typically build extensive portfolios with strategic entry points at low prices. To maintain stability in these portfolios over the long term, professional traders use various sophisticated strategies. One such strategy, which addresses the question above, involves a calculated response during a crisis.
During a crisis, some traders offload massive quantities of BTC, whether in anticipated or unexpected scenarios. To safeguard their liquidity and minimize market exposure, these traders sell large quantities of altcoins. By converting altcoins to cash, they create a liquidity buffer, reducing the portfolio's overall volatility. Additionally, traders may sell small quantities of BTC if their entry prices were particularly advantageous.
This approach not only mitigates the immediate impact of market fluctuations but also positions traders to capitalize on short-term trading opportunities (up to 15 min timeframe !). The liquidity set aside allows them to engage aggressively in the market as volatility rises, a period during which trading algorithms and artificial intelligence systems struggle to perform manipulations effectively.
Such insights into portfolio management techniques can cost up to $10,000.
Happy learning !
The answer lies in the advanced strategies employed by crypto whales, who manage large, diversified portfolios.
Crypto whales typically build extensive portfolios with strategic entry points at low prices. To maintain stability in these portfolios over the long term, professional traders use various sophisticated strategies. One such strategy, which addresses the question above, involves a calculated response during a crisis.
During a crisis, some traders offload massive quantities of BTC, whether in anticipated or unexpected scenarios. To safeguard their liquidity and minimize market exposure, these traders sell large quantities of altcoins. By converting altcoins to cash, they create a liquidity buffer, reducing the portfolio's overall volatility. Additionally, traders may sell small quantities of BTC if their entry prices were particularly advantageous.
This approach not only mitigates the immediate impact of market fluctuations but also positions traders to capitalize on short-term trading opportunities (up to 15 min timeframe !). The liquidity set aside allows them to engage aggressively in the market as volatility rises, a period during which trading algorithms and artificial intelligence systems struggle to perform manipulations effectively.
Such insights into portfolio management techniques can cost up to $10,000.
Happy learning !
Note
To summarize :During a crisis (BTC dump , bankruptcy , ...) :
- Whales portfolio managers sell off small quantities of BTC and large quantities of altcoins to maintain liquidity and reduce market exposure, stabilizing their portfolios against high volatility.
- By converting altcoins to cash, portfolio managers create a liquidity buffer, allowing them to enter aggressively in short-term trading (short timeframes).
- Trading during high volatility (with small capital compared to the managed portfolio) is tempting for traders . During this period , trading algorithms and artificial intelligence systems struggle to perform manipulations effectively.
Trust me, this is one of the most valuable information you will know.
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.