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    Author Topic: (SSS) - A Sane and Simple bitcoin Savings plan  (Read 85006 times)
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    rpietila (OP)
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    November 24, 2013, 07:23:49 PM
     #21

    Thanks for the swift and thorough reply.

    Have another question. If one uses your adviced strategy of cashing out (rake) at set intervalls should one not take the exponential trend line into account? Let's say we are well behind the trend and we just hit a target. Is it really wise to sell 10% in this case? If you answer no I'm thinking one has to set some exception rules to the outlined plan before hand.

    LOL I was considering that matter going back and forth whether to include it or not when I wrote the post.

    THEN I realized that new highs are never reached when you are behind trendline Smiley It is mathematically practically impossible.

    Again - for most of people, I think it is most important to sell exactly according to schedule, because any deliberation leads to suboptimal results. With bitcoin, you only ever lose money by daytrading. The strict schedule guarantees you exactly a certain amount of bitcoins when they are worth a million a piece.

    For most of us, the problem is selling too much too early, and it will be achieved also if you are acting greedy and try to postpone selling. When the price crashes, you then get emotional and sell in the bottom, hoping it will go down more and you will be able to buy back. Most of the time you cannot, and either lose bitcoins or lose bitcoins. Losing bitcoins is bad because you will need them when the price is higher.

    If your rake% is zero, you will have all your bitcoins (10,000mBTC in this example) when we hit the target ($1M), but no rake.
    If your rake% is 5%, you will have 5,987mBTC and total rake of $665k. (I like it when USD is measured with k and bitcoins with m  Grin )
    If your rake% is 10%, you will have 3,487mBTC and total rake of $871k.
    If your rake% is 15%, you will have 1,969mBTC and total rake of $842k.
    If your rake% is 20%, you will have 1,074mBTC and total rake of $712k.
    If your rake% is 25%, you will have 563mBTC and total rake of $556k.
    If your rake% is 30%, you will have 282mBTC and total rake of $411k.

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