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BITCOIN BREAK-OUT STRATEGY
 taming the wild beast




Compared with other assets, Bitcoin(BTC) has either been
at the top or the bottom of the annual performance ranking.



Source: Ishares.com



The returns in the blue boxes above are illustrated with the
blue line on the chart below. It's hard to see but after the
huge gain in 2019 (+95%), it's still down 50% from the
beginning of 2018. Big losses are brutal.







Trading vs Holding Bitcoin

the value of $1000 from 1/1/2018 until 10/24/2024
(6.8 years)



[for perspective, $1000 in the stock market grew to $2377 during this time]



TRADING STRATEGY: Wait for a new price high to buy. Sell at first profit target.

Bitcoin is now available in an Exchange Traded Fund. This means you can
trade it like any other secturity in a brokerage account.




Bitcoin is extremely volatile. Do not invest any money you are not willing to lose.








BITCOIN TRACKING FUNDS

Until this year, Bitcoin was not approved for an Exchange Traded Fund. The fund we used for the sumulation above is the ETN (GBTC) which dramatically under-performed Bitcoin prior to 2022. Now we have several ETF options. The largest, IBIT is very liquid with average daily trading volume greater than $800 million and average bid/ask spread of only 0.03%. It has tracked the price of bitcoin extremely closely.

Because it's a fund, anyone with a brokerage account can trade it during normal market hours just like any other security. It doesn't require learning about the many nuances that are part of trading currencies.
DISCLAIMER: This website is for informational purposes only and not investment advice. The past is not an indicator of future performance. Results are hypothetical based on rules applied to the past. Investments can and do lose money In trading, there may be times where we will get less than the full profit target on a trade, reducing the total gains.