LP farming on a downtrend market. My plans for my money.

It is not news that Bitcoin has declined in price, and the current sentiment is to the downturn. You can only make money when you buy cheap and sell high, not the other way around. LP farming means that probably your money is split 50/50, and when the prices of one of the pairs increase, the further decreases. And this is true regardless of the LP network you are using. You could be using SmarjtBCH and RSK, and those parameters will not change. On a downtrend, nothing beats buying at the lowest possible price, selling at the highest possible time, and going in and out with all your capital; unfortunately, that is easier said than done because no one can predict the market.

When you are providing liquidity, your incentives are the rewards you get and price appreciation, and you will get some impermanent loss if the price goes either up or down; I will put as an example my Sovryn LP farm since the price of Bitcoin and Sovryn aginst Bitcoin has come down my LP farm is now less valuable. As a result, my LP is holding more SOV than what I started with and less BTC than what I started with; in addition to my value lost now, I have some impermanent loss to add to the situation.

I started with 0.088BTC and 400SOV, until this morning I had around 450SOV and 0.075BTC, with a total value of less than $7000.00 that will mean my farm is losing some $2000 or so. My strategy is to accumulate when the price goes down and sell once the price goes up beyond my entry point. So I removed it from my LP 100soV so that the result will be that my LP will only have 400SOV and around 0.00665btc.

I am removing 100 Sovryn from my LP farm to have it liquid and ready to be sold later. The only price that I am paying has less value in my LP and, as such, probably less daily interest, and if the price comes even at lower support, and once again my farm shows another 500SOV instead of 400, I will be doing the same until I get at least 400SOV this way.

This is like slowly accumulating every time the price comes down, and you are essentially dollar or Bitcoin cost averaging; obviously, nothing beats just holding dollars when the market comes down and buying up the asset you wish to invest too, but since my money was already in 100% now I can remove some tokens to later sell them in case the price starts to go up again.

I will probably do this if the price of Bitcoin goes down to $30k and $20k levels, and at some point, I will do a double down which only means I get out of farming and I only hold my money in Sovryn. I will do a "double down" once I have accumulated at least 400SOV and my farm still has 400SOV plus whatever Bitcoin is left; that is my plan as a Sovryn farmer, and you could do the same if you are a farmer who is farming at this moment, and the same principle will work regardless of the network meaning you can do the same to your SmarjtBCH tokens like MIst, Eben, and Tango.

Pretty much my plan is the more my LP farm drops in price, the more I will set aside and remove from it so that when the price finally comes up again, I will have more tokens to sell at a higher price, I could wait until the price goes up to where I bought it in the first place, but I believe this way I could profit much more if the price goes up to my previous level, this article is not financial advice on anyway or form, I am just telling you my ideas and what I am doing, what works for me may not work for you.