Convex Finance (CVX)

$CVX

In this type of range the trader's patience and emotional intelligence are truly measured. A strategy as simple as buying near the bottom of the range and selling near the top is extremely profitable in this case: 42% gain on each upward swing and purchases at a 30% discount after downward swings (excluding shorts). 189 days in the range, but only 7 good buying opportunities and 5 selling opportunities using this strategy. That means 94% of the time waiting and only 6% executing.

It sounds quite simple, right? It is not at all. When you spend so much time waiting, your emotions start working against you:

1) “Why buy before it reaches the extremes? It should be at the extremes. Will it really reach the extremes?”.

2) “Another day waiting. I feel useless. I need to do something. What if this time it doesn’t reach the extreme?”.

3) “X coin is moving faster. That must be a better opportunity. I’ll leave here and buy the other coin”.

4) “This time I won’t buy/sell at the lower/upper limit. What if the range breaks to the upside/downside?

Impatience is every trader’s number‑one enemy.

#CurveFinance

Happy 5th year anniversary, @ConvexFinance 🥂