Are Crypto Pump groups profitable for new-comers in 2021? Update #3 — Strategy for next pump
Part 1: Are Crypto Pump Groups Profitable for new-comers in 2021?
Part 2: Update #1 — Strategy
Part 3: Update #2 — My first pump!
Part 4: This post
Part 5: Update #4 — My second pump!
Going with the assumption that there likely won’t be many outsiders bringing new money into these pumps, I’ll be approaching the pump tomorrow from a purely speed standpoint. Everything I do will be focused on trying to get my buy order in before as many people as possible.
In addition to this, I will be taking a conservative approach and going for a modest profit of 15%. I’ve seen a few people get abusive over this idea, but in a group of 200k it’s likely going to be bedlam and over within a minute or two — smaller groups with experienced pumpers will tell you that they buy, hold and wait for new-comers, then sell. I’m not convinced this is a thing — it feels to me like a great opportunity for the organizers to ensure they can sell all of their holdings at a handsome profit.
It’s worth noting that the instructions on all of the pump groups say we should buy and hold and wait for new-comers to buy, so my initial strategy is at odds with what it is we’re supposed to do. I’ll be trying this with pocket-change though, so my behavior won’t affect anything.
For this pump, my strategy is going to be to market buy at the speed of light, and then get 10x limit sell orders in at 10%-20% above the market buy order price in increments of 1%.
Example:
Market buy of $20 worth of Bitcoin of coin XXX — let’s say it fills at 100
Limit sell of 10% of the holdings of coin XXX at price 110
Limit sell of 10% of the holdings of coin XXX at price 111
Limit sell of 10% of the holdings of coin XXX at price 112
Limit sell of 10% of the holdings of coin XXX at price 113
Limit sell of 10% of the holdings of coin XXX at price 114
Limit sell of 10% of the holdings of coin XXX at price 115
Limit sell of 10% of the holdings of coin XXX at price 116
Limit sell of 10% of the holdings of coin XXX at price 117
Limit sell of 10% of the holdings of coin XXX at price 118
Limit sell of 10% of the holdings of coin XXX at price 119
Limit sell of 10% of the holdings of coin XXX at price 120
The idea is these limit sell orders are in place before everyone has finished buying, so I can sell on the way up instead of trying to panic sell on the way down.
(Hint: I’m going to automate the creation of the buy / sell orders for ultimate speed — details on this in a future post). If this works and its profitable, I’ll probably be open to offers for it.
It’ll look something like this:
This should mean that we don’t have to pick the top, and it gives us a good chance of being successful. If this does work, then we can compare what level of the market we managed to buy at and adjust the profit percentage to get a little more greedy.
Also bearing in mind that the compounding effect for subsequent pumps will come into play here if this is consistently profitable — assuming there is a pump a week, we’d be looking at 15% a week on our investment. Not bad.
Wish me luck…
Ideas still percolating
- Auto-detecting discrepancies in the volume of shit coins around the time that pumps are scheduled seems like a good idea to try and get ahead of the game — I will investigate this further
- Figure out a way to get faster at buying — can we skip some steps or automate this?
- Decrease the risk of market buying — what happens if the pump is fraudulent and it’s already 100%+ by the time we go to market buy? Hard to detect this and be super quick at the same time. Feels like a limit buy order that’s an acceptable % above the lowest ask in the order book could be a good idea here.
The next pump
There is another pump scheduled on Big Pump Signal at:
Sat, 9 Jan 2021 9:00 PM GMT (London)
Sat, 9 Jan 2021 4:00 PM EST (New York)
Sun, 10 Jan 2021 6:00 AM GMT+9 (Seoul)
This is the largest pump group with something like 200k+ users, so surely we’ll be able to be faster than a heap of them to turn a profit.
Stay tuned!
If you’re keen to get involved, here are the groups I’m currently a member of:
Big Pump Signal — Discord
ThePump — Discord
PumpIt — Discord
Pump Makers, Risk Takers — Discord
Fire Pump Signal — Discord
Giga Chad’s Pump ‘n Dump Fraternity — Discord
Insider Pump Signals — Discord
Monster Pump — Bitcoin Investment — Discord
Pump Central — Discord
United Binance Pump — Discord
Nuclear Pump Signals — Discord
