🚀 Dream Edition: Pushing MEME ATH Sell-off Hypothetical Return Analysis
Hypothetically speaking, just hypothetically:
If you bought MEME tokens at $100 each and sold them at their ATH (All-Time High), what would the potential returns be?
People often say retail investors love to fantasize, but calculating the potential maximum returns isn’t a bad idea.
To summarize briefly: the returns are quite impressive.
Out of the 90 tokens pushed, all of them yielded positive returns;
The highest return was from $BANG, with a peak return of 25x;
The average return of the top five tokens was 12x.
🤔 What does this indicate?
Compared to the previously analyzed strategy: buying and holding firmly, (if) selling at the ATH, the returns would be astonishing. Even in such a poor market, there’s still a maximum return of 25x.
Of course, no one can sell at the absolute peak, and it’s even less likely that every token you buy will be sold at its ATH.
But this at least gives us an insight:
Besides filtering and selecting which MEME tokens to buy, choosing the right timing to sell is crucial for profitability.
❓ So, what is the best selling strategy?
Selling at ATH is a form of "hindsight bias" and is impossible to achieve. However, selling strategies can be optimized.
Given the highly volatile nature of on-chain MEME tokens, you might consider a staggered stop-loss/take-profit strategy. But stop-losses should be decisive, while take-profits can be more aggressive.
For example:
If the price drops by 20%, stop-loss at 35%;
If the price drops by 50%, liquidate completely.
If the price rises by 50%, take profit at 35%;
If the price rises by 100%, take profit at 50%.
This is essentially an asymmetric take-profit and stop-loss strategy.
You can backtest different strategies to see their effectiveness.
Additionally, more effort can be put into the MEME token selection process, as there are too many scam tokens that quickly go to zero.
Here’s the complete data analysis:
--- ATH Potential Return Analysis ---
Total number of valid tokens analyzed: 90
Initial investment per token: $100.00
Total initial investment: $9,000.00
--- Overall Potential Performance (Selling at ATH Prices) ---
Total potential maximum value: $25,444.78
Total potential maximum profit: $16,444.78
Overall potential maximum return rate: 182.72%
Number of tokens with positive potential returns: 90 (100.00%)
Average potential return rate (%): 182.72%
Median potential return rate (%): 84.37%
--- Top 5 Tokens by Potential Return Rate (%) ---
Name, Potential Return Rate (%)
$BANG, 2545%
$UncleSam, 997%
$ppp, 992%
$MEMEWAR, 855%
$Wo, 766%
Top 5 Average Potential Return Rate: 1231.33%
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