FOREX may have a holiday on the weekends, but in reflecting about a previous week’s trends, analysis may certainly not have any such holiday.
Not as though to indulge the whimsy of any passing Unicorns or of the Bitcoin community’s latently centralized empires of the early adopter’s mining megaliths, for all of the slow-moving trends and overall limited volumes being bought and sold in the Bitcoin and altcoin exchanges of the Modern Web, daily, a short practice in day trading with Bitcoin may serve to make for an interesting manner of profit indicator. To such an effect, the thesis of profiting in Bitcoin day trading – though to a very small net profit – may be reinforced with a literal proof of profit, as to which one presents another thesis: On following a “Down Trend” in the Kraken ETHXBT exchange, to a net profit in ETH Volume.
It is no secretive kind of a system denoted in that article. Rather, it is a simple algebraic inversion of a strategy of “Buy Low, Sell High,” factored onto the trend of an exchange momentarily favoring the Base Currency of a currency pair – in which, the currency pair is ETHXBT i.e Ethereum and Bitcoin, and the Base Currency therefore, Ethereum. Though the “Down trend” in the market does not immediately favor a volume of Ethereum juxtaposed to a volume of Bitcoin, but in following the trend with a series of subsequent tades, it may serve to net a profit overall in accumulation of a greater volume of Ethereum altcoin – even so far a that it ultimately serves as a profit in a single reserve currency.
The ETHXBT exchange being one of the more liquid exchanges at Kraken, but of course – in the peculiar characteristics of the Bitcoin and altcoin exchanges – it may not be terribly easy to illustrate any quick and hugely profitable manner of a profit indicator with those exchanges, sufficient to indulge the no-doubt many of us looking for quick and hugely profitable investments, hypothetically.
That a profit of approximately $2 is a profit nonetheless, a simple system to such an effect is illustrated in the article – as linked-to in the previous. It is, ostensibly, a successful system, thus – as it gains a net profit to a manner of not any ethical or material loss – of course it might seem like a greater profit if more volume was invested immediately, but – then again – if more of a volume had been invested, immediately, then in the particular dyamics of that singular exchange, the trade pattern may not ever have advanced at all, not even to a net of $2 profit.
Contrasted to any manner of a broker’s leverage as may be available for trades posted in a FOREX exchange, any trades made in the Bitcoin and altcoin exchanges may be made without a calculable leverage, such that – ostensibly – if a leverage option was available, it might otherwise serve to “Level the playing field” as for entry by low-volume investors in a market then materially shared with high-volume investors and not at any loss to either scale of investment, then. At some point in time, however, Kraken had stopped offering any option for leverage as an option on bids — and thus, we are all left with a 1:1 leverage ratio. We must therefore all contend at a 1:1 scale with all of the market-clogging large volumes levied at singular price-points on the Bitcoin and altcoin markets.
Regardless, it may be theoretically possible to turn a profit in trading in the Bitcoin and altcoin markets anyway. It may be theoretically possible, but a profit indicator as such might not be able to advance at any more than a one tenth of glacial pace.One may credit, mostly, the — as previously denoted — the market-clogging large volumes levied at singular price-points on the market.
As may be logically and algebraically illustrated of a history of market exchanges at Kraken, when the market rate is advancing along as would be under any singular market trend – such as towards an immediate favor of volumes in Bitcoin, in the ETHXBT market’s latest trend – the trend ceases to progress forward by any appreciable magnitude, when the market exchanges must first buy or sell off a large volume of Bitcoin, e.g. at a scale of 1000 or more Bitcoin invested alongside volumes of e.g 0.5 Bitcoin at any single price point.
That even as a slow-going trend it is certainly to a learning experience, the profit of $2 might not seem completely matched by one’s greater understanding about the singular market, then. In short, the absence of any system of leverage for bids, such that – if it was available and implemented well – could serve to “Level the playing field” for all investors, the absence of any such leveraging system … it is just as it is?
Of course, then, although the FOREX exchanges are always closed for the weekend, but so far as the week’s previous market data in FOREX, itself, may be available via any single trading platform – e.g the boldly if not intoxicatingly overwhelming MetaTrader platform (MT4) (MT5) …. and its nonetheless intriguing, if not in all ways immediately simplistic MQL (MQL4) (MQL5) programming language – both of which may available with most brokers on FOREX … thus, the analysis need not take a holiday.
The simple, algebraic logic of a system might ever seem obscured for its description, perhaps? If so, but perhaps a further proof may serve to illustrate how an algebraic inversion of “Buy Low, Sell High” and a $2 profit has become – in all ways already – quite a profound learning experience, after all.
Hardpan Media 