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This is Version 1.1 As time progresses, I will develop additional models tailored to various assets and strategies. This new version stems from a Q&A question this weekend as to how to sell half and keep half using LILO model. 

Hey Team

as promised here is the new profit taking model for use in conjunction with Layer in Layer Out Model.

Pls hit FILE, MAKE A COPY and gear to your own risk tolerance or style. I included some examples.

  • The provided model is tailored for capitalizing on profits during an anticipated bull run. While it is specifically crafted for assets such as cryptocurrencies, it can be equally applied to disruptive stocks.
  • This strategy is intended to work synergistically with the 'layer-in, layer-out' method, which identifies the best layers based on temporal factors.  The model can be executed in three distinct ways, though more variations may be introduced in the future, reflecting changes in on-chain analytics, volatility, money flows, and other metrics.  Incremental

3 METHODS

  • Profit Taking: Here, one sells 10% of their current position at each layer, for up to five layers. This approach ensures that you remain invested to a certain extent, retaining 'skin in the game.'
  • Fixed Position Reduction: Under this method, you would sell 10% of your initial position at every fifth layer. By the end of the fifth layer, you would have completely liquidated your position.
  • Staggered Gains Strategy: For the first five layers, sell 10% of your position at each layer 6 thru 1o of LILO model. After this, you proceed to sell 10% for every 20% increase in asset price. This tactic is particularly tailored for scenarios anticipating a sharp surge, commonly known as a 'blow-off top' in the cryptocurrency world.

REMEMBER: The numbers and layers are dynamic.  Your cost basis and your goals are up to you. I just build the tools to make sure we as a community do not get caught out like last bull run.  MY RULE #1 of INVESTING - NEVER MAKE THE SAME MISTAKE TWICE!!!

Which method you choose will depend on your risk tolerance and investment goals. If you are more risk-averse, you may want to choose the second or third method. If you are more risk-tolerant, you may want to choose the first method.

Files

PATREON IA: MASTER PROFIT TAKING MODEL Dec 2023

instr This is an early stage model, and is a starting point for consideration NOT my final view on where to take profits Customise to input your own target range and how aggresively you want to take out cash once we enter that range This sheet is my own thinking, its NOT IA approved Input your o...

Comments

Anonymous

Hi, James, Thank you so much for the sharing. Can we save a copy of your LILO model? Where to find it? Thank you.

Anonymous

Love this. Can we add versions of this for solana and other assets?