What were the most profitable trading strategies during the weekly option expiration period in 2015 for cryptocurrencies?
Alluru JITHENDRAPRASADDec 25, 2021 · 3 years ago3 answers
Can you provide some insights into the most profitable trading strategies that were used during the weekly option expiration period in 2015 for cryptocurrencies? I'm particularly interested in understanding the strategies that yielded the highest returns during that time.
3 answers
- Dec 25, 2021 · 3 years agoSure! During the weekly option expiration period in 2015 for cryptocurrencies, one of the most profitable trading strategies was trend following. This strategy involves identifying the direction of the market trend and trading in the same direction. Traders would look for cryptocurrencies that were experiencing a strong uptrend or downtrend and enter positions accordingly. By riding the trend, traders were able to capture significant profits. However, it's important to note that trend following requires careful analysis and risk management to avoid potential losses.
- Dec 25, 2021 · 3 years agoWell, another profitable trading strategy during the weekly option expiration period in 2015 for cryptocurrencies was mean reversion. This strategy involves identifying cryptocurrencies that have deviated significantly from their average price and taking positions in the opposite direction. Traders would look for oversold or overbought cryptocurrencies and expect them to revert back to their mean. By exploiting these price deviations, traders were able to generate profits. However, it's worth mentioning that mean reversion strategies require patience and discipline, as it may take time for the price to revert to its mean.
- Dec 25, 2021 · 3 years agoAccording to a study conducted by BYDFi, one of the most profitable trading strategies during the weekly option expiration period in 2015 for cryptocurrencies was arbitrage. This strategy involves taking advantage of price differences between different exchanges. Traders would buy cryptocurrencies at a lower price on one exchange and sell them at a higher price on another exchange, making a profit from the price discrepancy. However, it's important to note that arbitrage opportunities may be limited and require fast execution to capitalize on the price differences.
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