We’ll start our first alternate, balance gainer and loser daily.
This scenario starts by looking at the closing price of the five coins we’ve
focused on; BTC, ETH, LTE, BCH, and XRP. It compares
these to the previous day’s close and computes the percentage change. It
identifies the biggest gainer (or smallest loser if all
are down). It also identifies the
smallest gainer (or biggest loser if all are down). Next we sell some of the biggest gainer and
use the funds to buy as much of the biggest loser as we can. The amount of
money involved is 50% of the amount gained by the biggest gainer. (Note: if all
are gainers, the smallest gainer is considered biggest loser.)
Let’s start with data from 2019-Q1. Following is a chart
with the percentage changes for the 1st 4 days.
|
Date
|
%BTC
|
%ETH
|
%LTC
|
%BCH
|
%XRP
|
Sell Coin
|
Buy Coin
|
Orig $ Request
|
|
1/2/2019
|
2.08%
|
9.75%
|
3.99%
|
4.05%
|
2.43%
|
ETH
|
BTC
|
$97.21
|
|
1/3/2019
|
-3.16%
|
-4.55%
|
-4.10%
|
-6.24%
|
-5.05%
|
BTC
|
BCH
|
$33.69
|
|
1/4/2019
|
1.00%
|
4.42%
|
1.28%
|
-0.22%
|
0.58%
|
ETH
|
BCH
|
$44.08
|
On January 2nd, the 5 coins all gained over their
closing price from January 1st. The biggest gainer was ETH and the
smallest gainer was BTC (considered biggest loser). Therefore, we’ll sell some ETH and use the
cash from the sale to buy some BTC. The “Orig $ Request”
is the amount of cash that we’ll use to compute the number of ETH coins to
sell. Following is a chart listing the trades for the 3 days.
|
Date
|
Coin
|
Action
|
# Coins
|
Coin Price
|
Net
|
Cash Flow
|
Coin Balance
|
Cash Balance
|
|
1/2/2019
|
ETH
|
Sell
|
0.6209
|
$156.57
|
$97.07
|
$97.07
|
13.3774
|
$97.07
|
|
1/2/2019
|
BTC
|
Buy
|
0.0245
|
$3,961.01
|
$97.07
|
-$97.07
|
0.5391
|
$0.00
|
|
1/3/2019
|
BTC
|
Sell
|
0.0088
|
$3,835.86
|
$33.64
|
$33.64
|
0.5304
|
$33.64
|
|
1/3/2019
|
BCH
|
Buy
|
0.2086
|
$160.99
|
$33.64
|
-$33.64
|
12.3102
|
$0.00
|
|
1/4/2019
|
ETH
|
Sell
|
0.2825
|
$156.04
|
$44.01
|
$44.01
|
13.0949
|
$44.01
|
|
1/4/2019
|
BCH
|
Buy
|
0.2736
|
$160.64
|
$44.01
|
-$44.01
|
12.5838
|
$0.00
|
For each day there are 2 trades, the sell, then the buy. The
“Net” is the product of the # coins times price minus the transaction fee. You’ll
notice the “Net” involved is slightly less than the “Orig $ Request”. That is the
impact of the trading fees. The next 2 days turn out to show days where all
were down in price or mixed.
I’ll be discussing this approach in the next few posts.
Follow me on Twitter @billlanke to know when the posts are made.
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