How the Scale (Seesaw) method works
I have brought up the scale (seesaw) method before in Discord and a few people have mentioned they find the idea interesting, so I decided to do a post to explain how it works.There are two scale methods I have used and I will explain them both. Mind you, this is not financial advice, simply an explaination of how the methods work.
The first example puts fiat or a stable coin on one side of the scale and a porfolio of 10 cryptocurrencies on the other side. The total value of each side should start out equal and the each cryptocurrency should start out equal to all the others. For example: The stable side could start out at $100 and each of the 10 Crypto investments could start out at $10 each to give the crypto side a total value of $100. You could use any portfolio size you wish. for example 4x at $25 would work, as well. To be perfectly honest, you can do this method on a crypto by crypto basis with a spreadsheet, to simplify it. Just remember to use a spreadsheet and track swapped quantities for each stable/crypto pair independantly on the sheet, not in your wallet.
The function of this method is to utilize the Bear/Bull actions of the market to sway value back and forth between stable and crypto and accumulate bits and pieces through the kenetic energy of those movements. You should wait for a value difference of 10% or more, and then transfer 5% value to the other side to balance the scale. If crypto drops 10% below stable, then take 5% of stable and buy whatever crypto has dropped the lowest (remember, 10 equal portions, as much as possible). When the market recovers and the scale tips 10% high on crypto, then sell off 5% of your biggest crypto values into the stable side of your scale.
The second type of seesaw/scale method doesn't use stable coins and is a 'all in' method. This is also a floating method because the entire method value goes up and down with the value of the Markets. You divide your value evenly between 10 cryptos and 'let it ride', so to speak. This is the method I used in 2015-2017 to turn $264 in seed money into $3500 plus. Some value was lost later due to the following valley because I failed to put everything into stable after the crest, but I did manage to close the experiment with over $1400, which is still 530% in just about 2 years. I did this experiment on Poloniex with value shifts of 0.0001 BTC, every time a 0.0002 gap was detected, and I used a bot to do it. So, all I really did was watch it happen. I would also note that value was split beetween Poloniex's whole BTC pair market, as opposed to 10 crypto, so at a minimum, the bot was watching probably 35-70 crypto values.
The method works just like the first method, but, compares to each other instead of a gap in value between its total value and a stable pool. If the gap between the highest and lowest crypto holding reaches a specified gap, then half the gap value is swapped from the highest dollar valued crypto to the lowest. For example. If I have $100 worth of BTC and $100 worth of of Dogecoin and the value of my Dodgecoin goes down to $90, while my BTC value remains at $100 (a 10% gap), then $5 worth of BTC would be swapped into Dodgecoin.
The easiest way to use this is to identify 10 crypto that seem to not work too closely in tangent, in regards to value, AND, not be cryptocurrencies that you tend to use or add and subtract value to, as this woul mess with the values. You CAN use crypto that you reguarly add/subtract to, but then you would have to use a spreadsheet to track the exact quantities partitioned with your method (price * qty = value) for each coin and precisely modify the qty involved for each swap. Easiest to use void crypto you have no use for and just see what the dollar value is of your holding in your wallet.
I hope this adequately explains the method to such a degree that you can see how to use it yourself, if you chose to. Feel free to like and comment below. I will keep my eyes and ears open to other tidbits I can tell you guys about.