Dollar Cost Averaging for Exiting a Trade

The dollar cost averaging strategy, commonly used for entering markets, can also be useful for gradually exiting trades. Instead of selling all your trades at once, you can sell portions of them at regular intervals or at different price points. This will determine your average exit price.

Example:

Let's say you have one Bitcoin that you bought at $2,000. During a bull run, the price of $BTC rises to $50,000. Instead of selling everything at $50,000, you can sell 0.1 BTC at $50,000, another 0.1 BTC at $55,000, and so on. This reduces the risk of losing further gains, while retaining some of the profits.