Extreme vs. Optimization in crypto trading

Trading shouldn’t be emotional. As long as there are no “kicks” it means that you are doing well. As soon as the heart rate increases, it is clear that something is wrong.

You either trade too big or violate other rules of prudent trading.

Why optimized trading is better than chasing extremes

Florian Grummes is the head behind Midas Touch Consulting, an analysis service for the market of precious metals and, for some time, also crypto currencies. On his blog, he and other analysts conduct technical, fundamental and sentiment-driven analyzes. Below you will find one of his analyzes, first in English on his blog published is.

We all like to be inspired. We want to be special, feel meaningful and have a story to tell. The extremes deliver this Bitcoin Revolution. They make us feel something. One of the greatest challenges in trading is not to bet on extremes or put everything on one card; not following his instincts. Successful trading requires a firm belief that averages and optimization are the way to get rich. Extreme versus optimization – the inner battle that a trader has to win every day.

Optimization may not create the desired euphoria

Nonetheless, it is the surest way to approach the market from a low risk perspective.

Optimization is what brings systems to life. In addition, the goal must be to act and trade in your own interest and to orientate yourself towards the laws of probability. It’s not exciting – but it makes money.

In 2020 we had a negative oil price. Today, one in six people in the US is unemployed. We are dealing with a pandemic and civil unrest. We hear daily about conflicts in Iran and China and from governments taking out record loans. Money printing machines are overheating. In summary, we can say that we live in extremes.

Trading requires the utmost discipline to maintain balance, act modestly, and optimize carefully. In other words, stay in the middle and don’t let emotions overwhelm you.