Part 5/7:
- Buffer Room for Volatility: Creating a strategic buffer can enable stability during periods of market fluctuations. This balance is key in maintaining profitability while capturing trends.
Illustrative Examples of Staying in Range
Using concrete examples, the speaker shares results from different liquidity positions:
- A 146% APR Position: When the investor remained in range 97.5% of the time, they achieved a $6,000 profit, which significantly surpassed the typical market earnings of $2,800. The majority of this income stemmed from the efficiency of staying in range.