Using the Break-Even Price Feature on CMM
By CMM Team - 10-Jan-2020
The break-even data widget is probably a team favorite piece on the CMM dashboard. It’s incredibly helpful to know the exact price an investment needs to be above to stay in profit and monitor when a trade needs to be managed if the price drops.
Example: A STRAT Investment
One important use for monitoring the break-even price is to know when to start exiting a bad trade (even if a trader still likes the coin they own). One CMM team member, for example, acquired a bag of STRAT. The break-even price started around 65,000 sats, but eventually it averaged down to 22,500 sats.
The screenshot on the right shows how they managed this trade.
Buying around 22,000 sats and then selling into a level they marked as resistance at 29,000 sats were two key steps they made to manage the position based on checking their technical analysis and the break-even price. So, the break-even price had already moved lower.
Then, they re-bought the coin around 20,000 sats and later sold a larger chunk of the investment between 36,000 to 40,000 sats. By this point, they had totally reduced the initial break-even price. And it must have been fun to check the profit and loss data on their dashboard.
They also successfully lowered their break-even number as close to zero as possible.
Example: Portfolio Break-Even Overview
Readers can see how this trader is performing with their other investments from an overview of multiple break-even price levels shown in the screenshot below.
OCN is the worst performer. MUSIC is the best performer (so far).
Readers will also notice in the second row that the MUSIC trade has a break-even price of zero. This number is because the overall trade history from this asset is so profitable that it is impossible to take a loss with the current balance of MUSIC that the trader holds.
These break-even numbers make trading a fun meta challenge. Aiming to trade successfully such that break-even prices are as close to zero as possible can be a useful goal.