A Day Of Carnage
Yesterday we saw Ampleforth get absolutely decimated in a bloodbath that left the AMPL price crushed at $0.62! There is a fair amount of speculation regarding the actual cause of the sell-off but it is most likely just the sell pressure below a dollar being compounded by the ecosystem fund selling a large amount of tokens.
There is always a lot of speculation surrounding large moves in either direction. At the end of the day one has to try and design a strategy that incorporates as many possible scenarios as possible.
My Strategy Approved
My strategy incorporated this market move perfectly and I am glad to say that my stack is currently about 20% in profit since yesterday. Provided the price stays above a dollar, the daily rebase will compound this profit further. I recently described my strategy in my recent article, "My Ampleforth Strategy!". Sure, I could have bought down at $0.62 but there is always the risk that the price drops a lot further and stays suppressed below a dollar.
If the price were to be trapped below $0.60, the daily negative rebase would reduce the dollar average significantly and one is not guaranteed to see highs required to compound the holdings back into profit. As I am writing, the AMPL price is at $1.21 and has been as high as $1.36 on the day.
This strategy is more about securing gains, effectively and speedily. I have chosen to experiment with another strategy, where I utilize a bit of a hodl approach but I still need to work out the average length of cycles etc.
Ampleforth definitely is an interesting concept and I think a lot of the early gains were made due to people not fully understanding the mechanism that empowers AMPL. So early buyers were seeing the daily positive rebase multiplying their initial investment at an alarming rate, while many new buyers were simply buying void of any understanding.
Trade or Buy AMPL on FTX
