Would you consider yourself a professional trader or more a hobby trader?
Both. I originally began as a hobby trader, however, I then went on to turn this hobby into a profession through linking everything back to my MSc degree; Economics and Governance. I am highly passionate about Crypto Trading because I am constantly battling my own emotions. I always strive to better understand and control my own personal emotions and maintain an entirely rational and strategic approach.
What was your plan from the beginning, did you stick to that plan or you adjusted it?
It is pretty ironic to tell you that I did not know whether I was actually participating in the competition. I signed up in the morning of May 1, so I simply was not sure. During the weeks after, I just did my thing until I realized that I was performing very well during those weeks. On May 20, I looked into the ‘Ultimate Pizza Day Contest’ page and I realized there was a page that was tracking the performance of all contestants, and my goodness, I was in first place! I am actually very happy that I had not seen the performance page before that day because it might have affected my trading performance negatively during those weeks.
Check out the CryptoChris Crypto Strategy.
How many times did you monitor your strategy?
I monitor my strategy every day. I analyse the prices of different projects and base my decisions on that analysis. In this case, I was focused on a few projects which were technically promising and positioned on a low-price level in both the short- and long-term.
Did a correction (or Bitcoin Halving) in the first week change your plans?
No, it did not. I try to avoid overreacting and I try to stay rational.
Which asset really pulled you to the top?
STEEM and Omisego. STEEM was very well positioned in the short-term, so I decided to ‘ride a short-term price cycle up’ and close my position. STEEM actually went up 100% that day, but I sold after 30% profit. The same happened with OmiseGo (OMG). For a very long time, I had been waiting for OMG to get pumped. I knew it was perfectly positioned and I was simply thinking: ‘If I were part of a group of pumpers, I would definitely go for OMG now.’ And so, I invested more than 30% of my assets in OMG. I was more than right; OMG went up by 400% in May! I cashed out after a 30-50% increase, simply because I knew this had already given me a huge chance to win the contest (if I were even in it). I felt a little disappointed that I did not enjoy the full ride up, but hey, I sold, and I moved my assets to new and better positions.
Do you usually rebalance with the same risk as you did during the contest? Less/more risky?
Because I was not 100% sure whether I was signed up for the contest, I behaved quite like I would normally do. But I did sell positions thinking: If I am in the contest, I must be very close to winning, these percentages will help me out and I better sell to secure my profits.
My Best Bitcoin Story
I’m not sure whether any of you guys ever heard of Peepcoin (PCN)? Summer 2018. PCN was one of the cryptocurrencies that wasmentioned on the Twitter account of John McAfee, and as a result, it skyrocketed during a few weeks. I looked into it, but I couldn’t take the project too seriously due to its name.
During that summer, a close friend and I renovated an old camper van. We installed solar panels and the camper provided us with sufficient electricity provision and internet connection. We planned to travel through Europe while being able to trade cryptocurrencies on the road. We drove from the Netherlands to Croatia in two weeks. During these two weeks, Peepcoin increased from 1 satoshi all the way up to 20 satoshi.
I felt annoyed. How could a project with that name perform so well? Maybe, there was more going on here? On one of the days that followed (in Croatia), I saw PCN going down to 13 satoshi. I decided to buy because I considered the decrease from 20 to 13 as a good moment to gain some short-term profit. Before going to bed, I set my sell targets at around 15 satoshi.
The next morning at 6am, I woke up and I saw that PCN totally crashed and was now selling at 1 satoshi, the smallest possible price in BTC! I checked their Twitter account and read bad news about PCN. But at the same time I knew; ‘the news is bad, but is it bad enough to explain a 20-fold decrease?’ At this point I knew I had to invest, although it might seem risky, real profits could be made by ‘taking the risk.’ And I have seen such things happening many times before. So I put a significant investment (4k USD profit) into PCN at 1 satoshi and I set my sell orders ready at 3 satoshi before going back to bed.
The next morning, I woke up in the camper van, on the Mediterranean coast in Croatia, my positions were sold, and I started the day with 8K USD profit. It was extreme to experience such a thing in such an epic setting. For the rest of that day my friend and I decided to celebrate.
What would you suggest for other managers?
Write down your successes and failures, and keep a diary of your own thoughts and emotions. This will help you understand your strengths and weaknesses, and apply the lessons you learn during your trading journeys. When your feelings tell you to buy, think twice. Often, we are driven by fear of missing out (FOMO) or fear under decrease (FUD).
One of the big lessons I have learned is to stop thinking in black or white terms. I often encounter the dilemma: should I sell or should I keep my position? Why not sell 50%? This often helps me to focus and make determined decisions.
When I explain my way of thinking to friends, I explain investment markets as follows: the majority are sheep, they lose, the minority are wolves, they win. As Warren Buffet said: ‘be greedy when others are fearful, be fearful when others are greedy.’ It is funny to observe how I get texts about crypto when markets are green, while nobody talks about it when the numbers are red! We should actually do the opposite! We should become greedy when we see these red numbers, and be extremely careful when things seem too good to be true. This strongly aligns with my story about the Peepcoin (PCN) story, but it also refers to the ‘crypto bubble’ in 2017.
For everything you gain, another must lose. For every right decision you make, another person makes a wrong decision. Sometimes we just need to do the opposite to what we feel like doing. But find your way to distinguish yourself from the herd and become a wolf. But if you do not, an investment in the CryptoChris strategy might be a good option for you to become a part of my wolf pack! ;-)