Spike strategy
Investor guide
You can invest in Spike strategy on Moonbase. It works by placing buy orders at very low prices. This way, it catches “capitulation spikes” — irrational sell-offs from inexperienced traders.
Essentially, Spike strategy picks the low-hanging fruit and re-sells it in small portions at normal market price.
Overview
- Potential: 3x-12x allocated capital per spike (depending on spike depth; see examples).
- Min deposit: 0.1 BTC.
- Max deposit: 100 BTC.
- Duration: can withdraw anytime.
- Profit distribution: 50/50 between us & investors.
Examples
Others:
- 12x spike at BINANCE:YOYOWBTC on 14 Mar 2019 from 0.00000481 to 0.00000040.
- 8.2x spike at BINANCE:CMTBTC on 30 Nov 2018 from 0.00001077 to 0.00000130.
- 6.9x spike at BINANCE:CNDBTC on 12 Jun 2018 from 0.00000693 to 0.00000100.
On average, there are about 1–2 spikes per month.
Description
- Strategy detects that CND is traded at 0.00000600–0.00000615 BTC.
- Strategy places an order to buy 3000000 CND at 0.00000200 BTC (3x lower from current bid price).
- An irrational trader sells 9500000 CND at once, creating a spike & driving the price much lower.
- Strategy buy order for 3000000 CND is filled at 0.00000200 BTC.
- Rational traders close the gap by placing buy orders in the interval between 0.00000200–0.00000600.
- Strategy starts selling with small orders (average sell price = 0.00000605).
- Strategy receives a revenue of 18.15 BTC = 3000000 CND * 0.00000605 BTC.
Results:
- Input: 6 BTC.
- Output: 18.15 BTC (~3x initial capital).
Spike strategy allows to 3x initial capital with low risk, but works only when there’s an irrational trader who wants to sell a large amount of tokens.
Risks
- Delisting: sometimes, a sell-off happens because the token has been delisted. However, it doesn’t happen instantly — instead of one big sell-off, there are multiple small sell-offs (cascade). The strategy detects that and cancels the orders.
- Fundamentals: sometimes, a sell-off happens due to fundamental factors (developer leaving the project, vulnerability being discovered, etc). This case is similar to delist: it doesn’t happen instantly, because the information spreads in waves — there are small delays between sell-offs. The strategy detects that price is going down too fast & cancels the orders before they are filled (it has enough time, since closest orders are sitting at -50% from pre-sell-off price).
- Exchange: it is somewhat risky to keep your money on the exchange, but most trading strategies require that anyway. In addition, we only use reputable exchanges: Binance, Bittrex, OKEx, Huobi.
It’s time-consuming to execute this strategy manually. Most people don’t have the time to constantly move the orders to maintain the distance from bid price. Our strategy is fully automated: it monitors the market 24/7, moves the orders accordingly and re-sells the tokens it bought without human intervention.
Spike strategy provides 3x-12x return with low risk & low execution frequency. Min deposit is 0.1 BTC — contact your account manager if you’re interested.