Recently I had a pretty good run on altcoins and want to share how I did it. Some people probably were left on the sidelines (and for good reason, the macro picture is no joke).

A lot of the reason most people get scared off is they place trades on leverage or on coins that have no proven track record OR they are denominating their gains in USDT.

An alternative to this approach is to only trade spot (no leverage) on coins that have been around for a few years and to track your gains against BTC and ETH only.

The Major Benefits of this Spot-Only Strategy

^No liquidation risk from using margin.

^Altcoins are more volatile than BTC and ETH so when you are on the right side of the trend, you will profit more than just holding them against USD.

^Large cap altcoins will mean revert eventually (if you are in too early or late, chances are you can revert your ALTs back into BTC or ETH without loss of return at some point in the near future).

Anatomy of a Spot Altcoin Trade

Recently APE had a really nice move to the upside

2022 has been extremely challenging for bullish scenarios. Since the end of March, making money buying crypto has been, ahem, difficult.

BTC hasn’t really been in an UP trend according to CoinRotator.App until just a few weeks ago. On July 10th an UP trend alert was seen in the channels.

I redeployed USDT into BTC in early and mid-July, partially based on the excessive selling due to the liquidation events mentioned earlier and the less hawkish tone set by the FED. I was looking for some Altcoins which had not only bullish Up trends but also a newsworthy narrative.

Highly personal charting approach ahead

Once the signal appears on CoinRotator I never blindly enter any altcoin trade. There are many reasons for this but the most important are as follows:

>Altcoins are much less liquid and susceptible to price gaps.

>A very wide range candle often marks the short-term top of a trend.

>Altcoins are dependent on the movements of BTC 85% of the time.

Once a list of candidates is created from CoinRotator I scale down to the 45minute chart on Tradingview.

I check for coins trending above the 4hr SuperTrend

Then wait for a light pullback but price doesn’t close below the 4hr trend

Once price resumes its uptrend I enter by swapping BTC or ETH for the targeted Alt.

The trade looks something like this:

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https://preview.redd.it/hqvjyqfqkhi91.png?width=700&format=png&auto=webp&s=c12bc779c9a586a47e21c3912eece1931b73e3b9

I'll hold this trade for more than a day if it suits my time horizon. In the case of this trade, it still seemed mkts were shaky so I took partial profits as soon as I saw some bullish momentum.

An easier setup is simply to track the daily Supertrend and wait for a profitable close against the trend to exit partially with a stop loss moved to break even or simply exit all at this point.

The most conservative play on this is to exit on the first red candle (bearish close) in profit (10% profit is the minimum threshold in our experience as it overcomes slippage, commissions and the USDT spread you are trying to overcome).

The chart would look something like this:

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https://preview.redd.it/313ttdr1lhi91.png?width=700&format=png&auto=webp&s=c46e7620a42cc83a60cccd30c1ed1b5f4930d3a7

When an Altcoin Trade Goes Against You

The most liberating aspect of this approach to Altcoin trading is the perceptual shift where you no longer compare your performance to USD. Perhaps this doesn’t suit your long-term goals and that is fine, but for a lot of “crypto maxis”, this is the healthier mindset.

There is however one major caveat: you can’t go all in on any altcoin. If you want to keep your net worth in crypto you must apply the [Lindy effect](https://en.wikipedia.org/wiki/Lindy_effect#:~:text=The%20Lindy%20effect%20(also%20known,proportional%20to%20their%20current%20age.)) or you more than likely will suffer tremendous loss at some point.

LUNA maxis will understand this risk all too well.

Trading can be really fun and profitable when you keep your risk at manageable levels. CoinRotator takes a very stoic approach to crypto trading. Of course, I suffer losses just like everyone else.

I was lucky enough to escape the LUNA trade at 80 but still did not protect myself well enough on UST. Effectively we exited the remainder of the UST position at .75 cents taking a 25% haircut on my stablecoin reserves.

I'll leave the rest of the trades I took recently on my medium post and you can decide if it's a viable strategy for you or not.

Always stoked to talk trade setups with others. And if you lost money this year, sorry to hear it, just try to survive until the next EZ mode begins. When that will be in anyone's best guess.