A YouTube video (creator: Kosta Ouzas) discussing algorithmic strategies for trading Bitcoin to generate passive yield. The excerpt emphasizes how algorithms behave during sideways markets and sell-offs, and warns that trader impatience/emotions can lead to poor decisions; it also notes an algorithm missed re-entry after a 3.2% dump.
If the market's moving sideways, it doesn't care because it knows there's going to be an opportunity for it to buy again at value and exit its position. So in my opinion, impatience and kind of, you know, feeling like the market's boring or not doing anything, this is just emotions that are going to cause you to lose your trades. Right. It doesn't actually really mean anything. Now the market has a big sell off, takes out this pool. We go long again right at the bottom of the pool. The market runs up, we close our position at the top of the pool. As you can see, the algorithm stopped taking buys here. If you look what's happened now, since this point, we've had a 3.2% dump and the algorithm has not entered again.
