$NOT $ENA $BB

After two months of experimentation, the conclusion is: the “sell high and buy low” grid arbitrage strategy for mining new coins does not work.

NOT has recently surged and sold out at low prices without any suspense. The strategy of "selling high" is actually at the foot of the mountain, and "buying low" again probably has to wait until the next bear market 😂

Of the six new coins recently launched, from ENA to NOT, only ENA’s strategy is still running, and the strategy applicability rate is only 16%.

For details, please refer to the following two old posts

Abnormal grid strategy for mining new coins

Sell all new currency bands

Let me explain why it is not applicable.

  1. Unable to see the daily trend, looking at the previous new coins, the daily trend is oscillating, falling, falling and soaring. In various situations, the methods of new coin market makers are different.

  2. The step spread of the grid is difficult to set. If it is set too large, the arbitrage times will be very small. If it is set too small, the price will be sold out in one surge.

  3. The grid position size is difficult to set. The trading activity has been very low for a month. In order to arbitrage profits, the position was increased. As a result, a wave of surges occurred and all the chips were surrendered in the low price area.

  4. The number of samples is too small. Even if you know that the market makers of several new coins are the same, it is difficult to predict the daily trend, starting point and timing of the current new coin.

  5. Most of the time, the trading of new coins is not active. The active time is basically a one-way trend, which is not suitable for grid arbitrage.

If the appropriate position and step spread can support a pull-up from bottom to top of about 5 times, the rate of return of such a configuration will be very low.

It is better to sell them manually in batches into U and invest them in current accounts 😅, or just lie in wait and wait until you reach a satisfactory price to cash in.

To make a satisfactory price judgment, you can try to look at the long-short ratio of the contract. If most people are bullish, can you sell them in batches?

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I used to sell manually and often sold at a loss. Now that I have played it out, I still sell at a loss. When I think about it calmly, I am not a market maker, so how can I not sell at a loss?