Jump to content

Recommended Posts

  • Replies 25.3k
  • Created
  • Last Reply

Top Posters In This Topic

  • RegalChicken

    1542

  • zenkert

    1137

  • John_Buh

    936

Top Posters In This Topic

Popular Posts

This is not the reason I thought I’d have an erection on Valentine’s Day...

This has got to be the single most bullish community on the face of the earth. Asset dips = "EVERYONE BUY BUY BUY BUY BUY" Asset dips more = "EVERYONE HODL HARD, HODL THE FRONT LINE, GIVE TH

Completely, completely off-topic but since there's so much good news around today, I'm going to share my own that just came in. BMG have offered me a favourable worldwide distribution deal for my musi

12 minutes ago, automatic said:

Try this for a simple exit plan w/ some room to grow the portfolio:

1. Create a split xrp / cash portfolio.  Assume that your initial split is 100 / 0, but the percentage of xrp will be reduced and percentage of cash increased at some preset prices.

2. Create tolerance bands that will be used to rebalance the portfolio.  If at any point in time either side drops to half of its optimal percentage (i.e. 80% drops to 40%), then rebalance the entire portfolio.  This will over time force you to sell high and buy back low.

3. Create your desired price targets and associated percentages.  ie. xrp $10 -> move to 90/10;  xrp $30 -> move to 80/20, and so on.  Extrapolate this until you are at 100% cash, or at some final desired ratio (i.e. cash out 90%, hold 10% forever).

Now, simply follow the plan.  Rebalance only when xrp hits the appropriate price targets, or when your percentages get significantly out of whack.

If you have to draw money from the portfolio, then withdraw from the cash portion.  If the process of withdrawing throws your distribution off by more than 50%, then rebalance the entire portfolio. 

This approach will increasingly dampen the market swings as your ratio goes from all xrp to all cash, while serving to largely protect the gains.  The only gotcha is that you will want to keep maximum concentration for as long as possible in order to truly realize maximum gains.  Diversify too soon, and long-term results will be significantly dampened.  For best results, wait until xrp touches $10 before commencing the diversification phase (i.e. switching to 95/5), however the specifics will depend on the size of your position and your appetite for risk.

 

 

Smart approach. My exit has always been structured in that way, however it didn't account for that % split and the rebalance / buy back dynamic.

Link to post
Share on other sites
24 minutes ago, automatic said:

Try this for a simple exit plan w/ some room to grow the portfolio:

1. Create a split xrp / cash portfolio.  Assume that your initial split is 100 / 0, but the percentage of xrp will be reduced and percentage of cash increased at some preset prices.

2. Create tolerance bands that will be used to rebalance the portfolio.  If at any point in time either side drops to half of its optimal percentage (i.e. 80% drops to 40%), then rebalance the entire portfolio.  This will over time force you to sell high and buy back low.

3. Create your desired price targets and associated percentages.  ie. xrp $10 -> move to 90/10;  xrp $30 -> move to 80/20, and so on.  Extrapolate this until you are at 100% cash, or at some final desired ratio (i.e. cash out 90%, hold 10% forever).

Now, simply follow the plan.  Rebalance only when xrp hits the appropriate price targets, or when your percentages get significantly out of whack.

If you have to draw money from the portfolio, then withdraw from the cash portion.  If the process of withdrawing throws your distribution off by more than 50%, then rebalance the entire portfolio. 

This approach will increasingly dampen the market swings as your ratio goes from all xrp to all cash, while serving to largely protect the gains.  The only gotcha is that you will want to keep maximum concentration for as long as possible in order to truly realize maximum gains.  Diversify too soon, and long-term results will be significantly dampened.  For best results, wait until xrp touches $10 before commencing the diversification phase (i.e. switching to 95/5), however the specifics will depend on the size of your position and your appetite for risk.

 

 

Wow almost exactly what I have in mind but articulated far more eloquently. The problem as you pointed out is determining those numbers. 

Greed is a horrible master. My sell numbers have all moved up since December. 

What I thought I wanted a year ago, has tripled. 

And when I think about that number, it feels like I'm short changing myself... 

Link to post
Share on other sites
2 minutes ago, RegalChicken said:

Wow almost exactly what I have in mind but articulated far more eloquently. The problem as you pointed out is determining those numbers. 

Greed is a horrible master. My sell numbers have all moved up since December. 

What I thought I wanted a year ago, has tripled. 

And when I think about that number, it feels like I'm short changing myself... 

Ya, I can relate to that.  The plan such as the one described never feels good when the price is pumping, but then as soon as the price starts tanking you immediately start cursing yourself out for not having implemented it when you had the chance.  If I have learned one thing (hopefully, we shall see) during January, that is while making paper money feels great, losing that paper money feels a whole lot worse.

I think that implementing a plan such as this one and then sticking with it would probably make us more likely to actually hold to $100+.   Without it, pretty soon "the money you can afford to lose" grows into a mountain that becomes increasingly hard to ignore, which then promptly translates into panic sells as soon as the price starts pulling back.   In absence of adequate cushion, the longer the hold, the weaker that the hand becomes. 

That has been my experience at least.

Link to post
Share on other sites
29 minutes ago, hyperguy said:

Waited forever... Just went in at 1.00

giphy.gif

Me too...well, i was about to, only to find out BINANCE DOWN AGAIN ARGH

edit, you can get there via us.binance.com but they'll start another maintenance cycle in about 1 hr...fyi

Edited by eddiebrock
Link to post
Share on other sites
20 minutes ago, automatic said:

Ya, I can relate to that.  The plan such as the one described never feels good when the price is pumping, but then as soon as the price starts tanking you immediately start cursing yourself out for not having implemented it when you had the chance.  If I have learned one thing (hopefully, we shall see) during January, that is while making paper money feels great, losing that paper money feels a whole lot worse.

I think that implementing a plan such as this one and then sticking with it would probably make us more likely to actually hold to $100+.   Without it, pretty soon "the money you can afford to lose" grows into a mountain that becomes increasingly hard to ignore, which then promptly translates into panic sells as soon as the price starts pulling back.   In absence of adequate cushion, the longer the hold, the weaker that the hand becomes. 

That has been my experience at least.

But then we need also to consider taxes in the US. Only 15%, if I hold a year but double+ potentially for short term sells. 

Link to post
Share on other sites
1 minute ago, RegalChicken said:

But then we need also to consider taxes in the US. Only 15%, if I hold a year but double+ potentially for short term sells.

Ya, minimizing turnover and maximizing tax efficiency is always important.  On the other hand, we just made 20%+ return in the past 24 hours;  does extra 20% in tax really matter in the grand scheme of things?  To me, safety of position takes precedence over ST cap gains worries. 

I'll let you know how that turns out next year though.  ;)

 

Link to post
Share on other sites
Guest
This topic is now closed to further replies.


×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.