DEFINITION of Ashdraked
Ashdraked is a term born from the trading of Crypto and conveys a situation in which you lost all your money. If one were to put all of their money into an altcoin that afterward tanked, one would say that you were “Ashdraked”.
WHAT IT IS IN ESSENCE
Here’s the whole story behind it.
There once was a trader who went by the handle Lord Ashdrake. He was a Romanian programmer and was a prolific force during the nuclear Bitcoin winter in 2014 and 2015.
He was highly active between 2014 and 2016, usually speaking against cryptocurrencies, especially Bitcoin.
His skill was shorting Bitcoin, and that strategy worked.
The trader was always shorting Bitcoin and was exhorting others to follow suit. The shorting strategy worked as long as the price of Bitcoin remained in a sluggish trend around $300. And this trader had enough Bitcoins.
But one day…
Bitcoin broke and held $300, Ashdrake performed his usual action of shorting Bitcoin. Unfortunately, this time the price continued through $300 to $500, and almost touched $600 in under two months.
Lord Ashdrake totally blew up his account to the point he could no longer trade Bitcoin. His folly was being unable to shift into a bull-market mindset. The trader community coined the phrase “to be Ashdraked”. It meant to completely blow up your trading account by shorting Bitcoin.
HOW TO USE
Don’t! Since then there is expression ‘Ashdraked’ for when you lose all of your invested capital, but you do so specifically by shorting Bitcoin.
An example of the term in use: Interactive Brokers was so afraid of being Ashdraked. So afraid that they did not allow clients to go net short on the futures contract.
So, this can happen when the trader is hoping to make twice and more in a short. But, as it was told, it turned out that such can loose over the big part of the portfolio.