Expert crypto trader Koroush AK shares 3-minute market timing playbook for financial freedom.

Expert crypto trader Koroush AK shares 3-minute market timing playbook for financial freedom.

In the dynamic world of cryptocurrency trading, expert Koroush AK has distilled his market timing strategies into a concise 3-minute playbook designed to help investors achieve financial freedom. AK's approach emphasizes discipline, patience, and a deep understanding of market dynamics.

AK begins by emphasizing the importance of risk management. He recommends adhering to a strict "1% rule," where no more than 1-2% of total capital is risked on any single trade. This conservative approach, he argues, is crucial for surviving the volatility inherent in the crypto market [1].

Next, AK discusses the concept of "dollar-cost averaging" (DCA), a strategy that involves investing a fixed amount of money at regular intervals. Unlike traditional DCA, AK suggests adjusting the investment amount based on market conditions. When Bitcoin drops below major support levels, he advises increasing the weekly buy amount, and scaling back during highs. This approach allows investors to channel market emotions productively, using fear as an opportunity and caution during euphoria [1].

AK also highlights the significance of portfolio allocation. He recommends allocating 3-6% of a portfolio to Bitcoin, with a barbell strategy of 70% in Bitcoin and 30% in Ethereum. This strategy focuses on the two most established cryptocurrencies, minimizing complexity and maximizing potential returns [1].

AK emphasizes the importance of stop-loss orders, but advises against traditional price-based stops. Instead, he suggests using "time-based stops," where positions are reassessed after 30 days of adverse movement. This approach, he argues, is more effective given Bitcoin's high volatility [1].

AK also discusses the correlation between Bitcoin and traditional markets. He advises increasing Bitcoin allocation when correlation is low (below 0.3) and reducing exposure when correlation spikes (above 0.7). This strategy helps ensure that Bitcoin is fulfilling its role as a hedge rather than a risk asset [1].

In addition to these strategies, AK advises against investing Bitcoin money needed within the next 18 months. He argues that modern Bitcoin cycles can take 2-3 years to complete, making short-term investments risky [1].

AK also touches on the importance of tax optimization, suggesting that investors structure their Bitcoin investments to minimize tax drag. He recommends using tax-loss harvesting during bear markets to offset gains [1].

AK concludes by emphasizing the importance of having a clear exit strategy. He suggests selling 10% of a Bitcoin position every time it doubles from the average cost basis, ensuring that investors capture significant gains while maintaining exposure to future growth [1].

References:
[1] Tony Kenler. (2023). How I Cracked the Code That Separates Winners from Everyone Else in the World's Most Volatile Asset Class. Medium. Retrieved from https://medium.com/@tonykenler/the-insiders-playbook-13-bitcoin-investment-rules-only-the-elite-know-d0b2eb3fddc6