1/ @jimtalbot made a very good point in response to my dip thread. I said I would give a detailed response, here it is.
I believe both approaches are valid, and performance ultimately depends on what the market gives us.
I believe both approaches are valid, and performance ultimately depends on what the market gives us.
https://twitter.com/jimtalbot/status/1479067929622859778
2/ -- APPROACHES --
I need to make some assumptions here on Jim's trading, sorry if I get anything wrong.
In the below scenario, if consolidation occurs, Jim would outperform me. However, if we get a strong bounce, I leave myself open to a few more favourable outcomes.
I need to make some assumptions here on Jim's trading, sorry if I get anything wrong.
In the below scenario, if consolidation occurs, Jim would outperform me. However, if we get a strong bounce, I leave myself open to a few more favourable outcomes.
3/ -- FAVOURABLE OUTCOMES --
My approach is approach has its roots in game theory. I am trying to give myself the most favourable outcomes so that despite what happens, I end up ahead.
I don't know if this is a bear market or if it's a quick dip before a major run.
My approach is approach has its roots in game theory. I am trying to give myself the most favourable outcomes so that despite what happens, I end up ahead.
I don't know if this is a bear market or if it's a quick dip before a major run.
4/ -- THE LOWER IT GOES --
The lower cryptos go the better Jim's approach works. I am starting my averaging down from here, whereas Jim will wait for consolidation.
If BTC drops to 20k and consolidates for months, Jim's performance will be better than mine.
The lower cryptos go the better Jim's approach works. I am starting my averaging down from here, whereas Jim will wait for consolidation.
If BTC drops to 20k and consolidates for months, Jim's performance will be better than mine.
5/ -- FLASH VS CONSOLIDATION --
If BTC has a flash recovery, I believe my performance would be better, based on what Jim has said.
If BTC has a flash recovery, I believe my performance would be better, based on what Jim has said.
6/ -- CONCLUSION --
I believe performance is dependent on how deep this retrace goes. Waiting for consolidation is more profitable if things consolidate long enough to take advantage of it. They do not always do that.
I don't believe there is an overall winning approach.
I believe performance is dependent on how deep this retrace goes. Waiting for consolidation is more profitable if things consolidate long enough to take advantage of it. They do not always do that.
I don't believe there is an overall winning approach.
7/ -- CONCLUSION cont --
I hope this is taken in the spirit in which it is meant, one of discussion. I might be wrong on Jim's overall approach.
I hope this is taken in the spirit in which it is meant, one of discussion. I might be wrong on Jim's overall approach.
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