This tutorial is a live backtest demonstration of a basic Dynamic DCA strategy using my Bitcoin Risk Metric and how it performed in the 2018-2021 BTC market cycle.
The risk metric quantifies the risk of buying BTC at any given time, highlighting periods of overvaluation and undervaluation. A Dynamic DCA strategy allows the user to:
Accumulate BTC during periods of undervaluation.
Lock in profit during periods of overvaluation.
Grow a cash position (undeployed capital) to take advantage of periods of extreme undervaluation.
I hope this tutorial is informative and gives a clear picture of how the @panpanXBT Bitcoin Risk Metric indicators can be utilised to guide decision making.
Please refer to the ideas linked below for information on how to gain access to these private indicators and strategies.
Great job, is it possible to try this? It's not within your scripts.
panpanXBT
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@henrykirkman79502, Hi Henry, thanks for your comment. Unfortunately, I don't think I can bring this to TradingView as the script gets community-banned every time I try to post it. I'm posting weekly updates on my Twitter, so if you'd like to keep up to date with the model, please follow me there. Thanks again for your nice comment :)