STEEM Trading System (Dollar Cost Averaging Experiment) Day 6

Bitcoin got a slight relief pump today after the SEC announced positive news for once, approving a BTC fund (check out Cointelegraph for more info). That sent prices above the $7,500 mark again which also should have had a slight downward pressure on STEEM prices, but instead we saw a little bit of buyer demand this morning.

Volumes are extremely low today with under 1 BTC exchanged for STEEM on this exchange. We need more liquidity and more traders out there actively making an effort. That would provide the price support we need to build legs upwards.

Trading strategy rules:

1. Use approximately 10% of the starting reserves (in BTC) per day to BUY STEEM when the price is BELOW a set value. In this case that will be the moving average (center line) on the Bollinger Bands using 1-Day candles on the chart. Each 10% chunk will be considered a "unit".
2. Sell ALL STEEM when the price is above the upper range of the Bollinger Bands (1-Day candles), or 10% per day when ABOVE the moving average (1 unit).
3. After 5 consecutive days of buying, reduce buy quantity in half (5% or 1/2 unit).
4. If price is within 10% of the ALL TIME LOW, and there is 50% (5 units) or less reserve BTC, then I am allowed to "go all-in".
5. "Buy below, sell above" is the golden rule.

Today's Trade:
2019/12/06
BUY 1/2 Unit
Price: 0.00001618 BTC
Quantity: 41.92238809
Total Cost (with fees): 0.00067999 BTC

We are still below the Moving Average, which has been trending downwards and is now sitting at 1652 Satoshis. I was able to scoop up some STEEM today for the price of 1618 but since we have already bought for 5 consecutive days the rules say I have to cut buy quantity in half. I will now purchase 1/2 of a unit per day instead (leaving me 10 days of reserve BTC).

Trade History:

Day 1) Buy 1 unit- Price: 0.00001611 BTC, Quantity: 84.20909241
Day 2) Buy 1 unit- Price: 0.00001636 BTC, Quantity: 82.92227865
Day 3) Buy 1 unit- Price: 0.00001599 BTC, Quantity: 84.84105558
Day 4) Buy 1 unit- Price: 0.00001615 BTC, Quantity: 84.00052500
Day 5) Buy 1 unit- Price: 0.00001592 BTC, Quantity: 85.21410042

Current Holdings:

BTC: 0.00619068 (4 & 1/2 units)
STEEM: 463.10944015 (5 & 1/2 units)

I just checked the total holdings and I am up roughly 2% so far on the portfolio! As time goes on and we get more data points I will be able to more accurately demonstrate how effective DCA strategies are.

*Disclaimer: I am not a financial adviser and this is not financial advice. This information is for entertainment and educational purposes only.