How to trade in flat

cryptomarkets
How to trade in flat or gradually breaking cryptomarket
BTC is flatlining, and the whole crypto market optically drowning. But markets never
sleep, so we can still find ways to trade.
Normally we see some market moves onchain on exchange netflows. But recently they
aren’t conclusive. More then 150k BTC have been dumped to the markets recently. And
some accumulation is taking place. But at the same time some big holders and some
whales are still distributing:

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 This is for example XRP. The upper chart are the biggest holders. They are usually the
first one’s to set the trend or the only one’s going against anybody else (buying, when
retails sells). But they reduced their holdings and rotated somewhere else.
Other charts, including the charts of stablecoins left on the exchanges say something
similar - traders rotated from crypto elsewhere. So what can we do in such a market?
We can do several things:
1. Accumulating assets we believe in. I personally believe, that best asset currently in
the world is Solana. I also believe in BTC, so I try to accumulate SOLBTC and rotate
between those two depending on each one’s value. Currently I’m 100% in SOL, but if
BTC will gain strength - I would rotate into BTC:

I routinely profile many other crypto coins in several ways, and I’ve again arrived to the
same conclusion as before - the only asset I’m focused on is Solana. I like price action
profile, fundamentals and purpose of RUNE and THETA, I like also FTT, SRM, VET, UNI
and few others, but they are secondary - they are only well performing vehicles to
support the accumulation of the main coin - SOL. Here’s how a profile of a strong coin
looks like:

THETA:

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 Even during a crisis, it recovers well.

SOL:

This one even during a crisis (-50% / -60% of the entire market drop) shows lot of
strength/recovery/attemtps to accumulate. It’s not held by panicking or weak investors.
That is a coin held by conviction.
Here are few examples of weak assets:

RAY:

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 The algorithm exposes the collapsing coin being able to recover only as a “beta” to the
entire market - as the market recovered, so did RAY.
DODO:

OXY:

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 This is the worst case of weakness, this a coin that completely resigned even on
volatility and beta following the market recovery. It’s been simply dropped.

2. Hedge / diversify. In February I realized, that my entire exposure is in crypto. So I

started to diversify and look for assets to hedge crypto - if one market goes down, the
other one goes up. So I focus now on the following assets / markets:

Bonds: TLT, TBT, TTT, TMV.

Stocks: Here’s what I’m trading today:

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 No particular preference, I trade what moves or catches the attention. So the idea
behind Gamestop is that it is pumped by WBS again, because crypto doesn’t move - so
I actually set my orders for and several others already during the weekend before the
opening of the markets. The idea behind Pirelli is, that they had a bad press, so it’s a
buy the bad news strategy. There is currently no company / project outside of Solana I
wish to be part of - so - only short term trades - vehicles for liquidity and buying power
for SOL.

Commodities: Oil, metals (gold, silver, uranium, etc..), lumber. I believe these are the
best hedge against inflation and good short term/long term trades. I also like Uranium a
lot and would invest long term.

Here’s a short term trade on gold:

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 In this particular trade I’ve put short on BTC against long on gold, but both can be
currently only short term trades.

Currencies:

It is very profitable to pit weakness against strength, so for example EUR / USD, CZK /
USD or TRY / USD, etc. For example some Central European economies are doing
surprisingly well, on the other hand Turkey is collapsing. So this is very tradable.

Which nation / economy is doing well and which isn’t can be seen outside of the charts
here:

https://www.mvis-indices.com/

MVIS Indices | Digital Assets, Emerging Markets, Commodities, Bonds, Sectors

Some of these indices are now tradable on FTX too.

3. Use algo. In crypto I use algo as a hedge against market moves, which go against
my positions / bags - so if the market drops, or is flat - the algo benefits from such a
situation. Here are buys / sells in a flat market (SOL):

It’s a constant stream of buys / sells. In this example it is SOLPERP traded above SOL
bags used as a collateral. This helps to keep value of the spots, to increase liquidity for
further purchases and to pay fees. In case if the market drops significantly, the algo
reacts in a way, that instead of closing the big accumulated position into profit, it is
possible to let it run into big profits or convert into a big spot bag (the algo bought the
bottom).

It is not even very sophisticated any basic algo can be used - in my example I’m using a
crossover of two short SWMA averages on short timeframes:

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 Professional traders often use TWAP or WVAP algos to accumulate instead of limit
orders and they are a part of some common trading workstations.
Algo’s can be used in any asset and there is variety of them to use. I’m learning how to
use TWAP, WVAP in trading workstation instead of simple limit orders to accumulate
anything I wish to own. Here’s example of algotrading lumber:

And different, more algos can be used on currencies - for example EUR/USD:

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 In conclusion - we can use any situation the markets present us. If one market is flat -
we can switch to another one. We can use these markets to hedge each other. We can
complement our investment and trading strategies with algo trading to improve the
hedging and to cover our trading fees and other expenses.

Good luck!

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