With the S&P 500 and bitcoin being significantly down from its high, has anyone pursued an active of strategy of setting in limit orders all the way down to zero which will not trigger but are there to catch total extent of any selloff. However, then you would set limit sell orders immediately after these buy orders are triggered. Take bitcoin for example. The current price is around $20,600. You would buy in maybe 0.05 btc now. Then set limit buy orders down at 98% of 20,600. Then another limit buy at 95.5%. So on and so on. Each limit buy would be at a greater percentage off the original buy in order to decrease stress on your portfolio during big selloffs. Assuming the bear market lasts all the way to $10k bitcoin, you would have several purchases. However, there are always big bear market rallies within a bear market. Assuming you make a purchase at 15k, you would set a sell order for that tranche at maybe 17k. This would allow you to take advantage of volatility in order to bring in some cash. Eventually, we will get out of the bear market which would mean hodling. Never go on margin with this strategy. Never buy an asset that has potential to go to zero.
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