Reversal Trading

What is reversal trading?

Reversal trading is a technique to minimize your losses by strategically selling your coins at a loss before they wipe out too much of your investment while at the same time tracking the coin and buying back in when it’s more or less bottomed out to ride it back up to profit or break-even.

1. Buying the coin & reversing the trade

2. Getting break-even

% needed to recover loss

3. Selling

At the end (above example), we sold our coin for 3.13% profit. If we had done nothing we would have recovered also at least on this chart but with no profit and it would have taken us much longer. And you don’t always get this type of 100% recovery sometimes there’s a small upward correction after which it drops even more in that case getting break-even without reversal trading would be impossible.

Apex example

Bots that support reversal trading

The example here shows reversal trading in APEX but also other bots like Cryptohopper and 3commas support this technique. Just note that it’s named differently.



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