I grab the data from coinmarketcap.com and look at plots of the logarithm of the vector of market caps. It looks kinda like this.

http://i.imgur.com/TFwe5lD.png [1]

Then I zoom in on sections and look for deviation from linearity, kinda like this.

http://i.imgur.com/w8wWnKb.png [2]

I believe the distribution in the first pic (with log scale) to be the inverse hyperbolic tangent

http://mathworld.wolfram.com/InverseHyperbolicTangent.html[3]

Anyway I look for points that are low and buy them hoping their BTC price rises. Gambling yes, but at least it’s math.

Discussion on reddit:

http://www.reddit.com/r/BitcoinMarkets/comments/20j78z/altcoin_trading_strategy_based_on_market_cap/

ALTOIDNERD 2014

Donations: 17NA1jYg5u6ejboArdM7HW4MwSa6cWfnEd

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