STEEM Trading System (Dollar Cost Averaging Experiment) Days 39-42
Bitcoin has been bucking like a wild bull over the past week and this has had the expected inverse correlation with STEEM prices. The dollar value of 12 cents has been holding but the BTC value is dropping towards hard support levels.
We would really like to see some higher volumes enter the market in order for us to sustain some price action. As for now there is so little volume due to the interest in bigger, more exiting projects. Steem is still chugging along though slowly building the social media and blockchain gaming platform of the future.
Trading strategy rules:
- Use approximately 10% of the starting reserves (in BTC) per day to BUY STEEM when the price is BELOW a set value. In this case that will be the moving average (center line) on the Bollinger Bands using 1-Day candles on the chart. Each 10% chunk will be considered a "unit".
- Sell ALL STEEM when the price is above the upper range of the Bollinger Bands (1-Day candles), or 10% per day when ABOVE the moving average (1 unit).
- After 5 consecutive days of buying, reduce buy quantity in half (5% or 1/2 unit).
- If price is within 10% of the ALL TIME LOW, and there is 50% (5 units) or less reserve BTC, then I am allowed to "go all-in".
- "Buy below, sell above" is the golden rule.
So for the past 6 days I have been unable to make a trade because I have already expended all of the reserve BTC. The price must rise back above the Moving Average which is sitting at 1685 Satoshis. The price is currently in the low 1500 range and aching for support. With low volumes like this the price easily experience slippage on bigger orders, I would not be surprised to see a break of the 1500 support levels again and a retest closer to the bottom price ranges. The all time low was 1365 Satoshis which was achieved only a few months back.
Today's Trade: 1/11/2020 NO TRADE Price: N/A Quantity: N/A Total Cost (with fees): N/A
Day 1) Buy 1 unit- Price: 0.00001611 BTC, Quantity: 84.20909241
Day 2) Buy 1 unit- Price: 0.00001636 BTC, Quantity: 82.92227865
Day 3) Buy 1 unit- Price: 0.00001599 BTC, Quantity: 84.84105558
Day 4) Buy 1 unit- Price: 0.00001615 BTC, Quantity: 84.00052500
Day 5) Buy 1 unit- Price: 0.00001592 BTC, Quantity: 85.21410042
Day 6) Buy 1/2 unit- Price 0.00001618 BTC, Quantity: 41.92238809
Day 7) Buy 1/2 unit- Price 0.00001614 BTC, Quantity: 42.02628496
Day 8) Buy 1/2 unit- Price 0.00001632 BTC, Quantity: 41.56275976
Day 9) Sell 1 unit- Price 0.00001670 BTC, Quantity: 84.107
Day 10) Sell ALL units- Price 0.00001824 BTC, Quantity: 462.59148487
Day 11) NO TRADE
Day 12) NO TRADE
Day 13) NO TRADE
Day 14) NO TRADE
Day 15) NO TRADE
Day 16) NO TRADE
Day 17) NO TRADE
Day 18) NO TRADE
Day 19) NO TRADE
Day 20) NO TRADE
Day 21) NO TRADE
Day 22) NO TRADE
Day 23) NO TRADE
Day 24) Buy 1 unit- Price: 0.00001818 BTC, Quantity: 80.10776139
Day 25) Buy 1 unit- Price: 0.00001776 BTC, Quantity: 82.00220170
Day 26) Buy 1 unit- Price: 0.00001722 BTC, Quantity: 84.57369931
Day 27) Buy 1 unit- Price: 0.00001696 BTC, Quantity: 85.87023008
Day 28) Buy 1 unit- Price: 0.00001731 BTC, Quantity: 84.13397471
Day 29) Buy 1 unit- Price: 0.00001800 BTC, Quantity: 80.90883901
Day 30) Buy 1/2 unit- Price: 0.00001783 BTC, Quantity: 40.84013186
Day 31) Buy 1 unit- Price: 0.00001753 BTC, Quantity: 83.07810052
Day 32) Buy 1/2 unit- Price: 0.00001724 BTC, Quantity: 42.23779298
Day 33) Buy 1/2 unit- Price: 0.00001727 BTC, Quantity: 42.16442102
Day 34) Buy 1/2 unit- Price: 0.00001695 BTC, Quantity: 42.96044549
Day 35) Buy 1/2 unit- Price: 0.00001684 BTC, Quantity: 43.24106598
Day 36) Buy 1/2 unit- Price: 0.00001660 BTC, Quantity: 46.78003785
Day 37) NO TRADE
Day 38) NO TRADE
Day 39) NO TRADE
Day 40) NO TRADE
Day 41) NO TRADE
Day 42) NO TRADE
BTC: 0.00000000 (0 units)
STEEM: 838.89870190 (10 units)
Things are not looking so hot for Steem right now but we must continue forward and hope for the best. There has been little mention of the new roll outs but they are assuring us they will be out soon. Smart tokens will bring a little bit of attention to Steem but I highly doubt it will produce the drastic effects we want.
Overall the portfolio is still up over 3.5% (in USD) since the start, but down slightly in BTC value.