In case you had a bit too much excitement with the spring dips, but still want to beat holding by trading just spot this strategy is for you. Yes, crazy profits will always seem exciting on paper, but sometimes not experiencing 50%-40%-30% drops is worth more than a few % extra gains. Not to mention the opportunity cost of drawdowns.
Whichever strategy you are running it's recommended you test it on historical data so you can quickly find out if there are any changes you can make so you don't have to watch your funds perish and loose sleep waiting for the bounce. If the bounce happens at all of course.
WILL POST EVERY POSITION BELOW
The goal of the strategy: - beat just holding Bitcoin , so make more than 253.61% in a year - max drawdown at 15% or less. In a market where pullbacks of 40% happen once in a while, so this is the greatest challenge - simple to execute or automate - the market runs 24/7 and we don't want to miss a setup
The strategy: On the 30 min timeframe We will open a position when: CCI (20) is below -230 AND Bitcoin Dominance is above 50 We will close the position when: BTC is up by 5% in last day and OBV is down by 0.5% in last day
You may not be familiar with CCI yet - it tracks the difference between the current price and the historical average price. So it identifies levels where the asset is cheap, giving us great entries. OBV helps us track volume and Dominance keeps track if it's the point of the cycle to trade the pioneer.
The results: The strategy did beat holding by returning +313% on spot. What's more important the max. drawdown or the maximum amount you would have been down in the past year is 14%. You would have not had any exposure during the pullback on 19th of May so you can be buying the dip. The strategy opened 40 positions, winning 31 of them. So if you're a trader that can't take losing streaks for too long this strategy may be appealing.
If you are interested in constructing something like this for alts you can by swapping dominance for Alts Dominance or a low Bitcoin dominance. Whatever you plan to trade do backtest first.
Happy to answer any questions you might have.
The positions:
19/04/2021 14:30 26/04/2021 09:30 7 days OP 55,717 CP 52,348 -6.05%
14/04/2021 14:30 19/04/2021 12:00 5 days OP 62,935 CP 57,107 -9.26%
31/03/2021 08:30 13/04/2021 15:00 13 days OP 57,809 CP 62,921 +8.84%
27/03/2021 12:30 29/03/2021 19:30 2 days OP 54,140 CP 57,722 +6.62%
20/03/2021 20:30 26/03/2021 16:30 6 days OP 58,455 CP 53,707 -8.12%
14/03/2021 11:30 18/03/2021 03:00 4 days OP 59,691 CP 58,999 -1.16%
12/03/2021 10:30 13/03/2021 13:30 1 day OP 55,862 CP 59,681 +6.84%
07/03/2021 20:30 09/03/2021 07:30 1 day OP 49,804 CP 53,767 +7.96%
04/03/2021 04:00 07/03/2021 12:30 3 days OP 49,575 CP 50,486 +1.84%
02/03/2021 17:00 03/03/2021 17:00 1 day OP 47,520 CP 51,077 +7.49%
27/02/2021 22:30 01 /03/2021 14:30 2 days OP 46,334 CP 48,209 +4.05%
25/02/2021 09:30 27/02/2021 06:00 2 days OP 48,936 CP 47,800 -2.32%
22/02/2021 01:00 24/02/2021 08:30 2 days OP 56,235 CP 50,627 -9.97%
18/02/2021 07:30 19/02/2021 18:00 1 day OP 51,409 CP 54,766 +6.53%
16/02/2021 17:00 17/02/2021 17:00 1 day OP 48,165 CP 51,241 +6.39%
15/02/2021 02:00 16/02/2021 05:00 1 day OP 48,011 CP 49,350 +2.79%
12/02/2021 15:00 14/02/2021 12:00 2 days OP 46,543 CP 49,055 +5.4%
06/02/2021 23:30 09/02/2021 13:00 3 days OP 39,303 CP 45,300 +15.3%
04/02/2021 15:30 06/02/2021 07:00 2 days OP 36,339 CP 39,267 +8.06%
31/ 01 /2021 15:30 01 /02/2021 18:00 1 day OP 33,045 CP 33,980 +2.83%
19/ 01 /2021 19:00 22/ 01 /2021 21:00 3 days OP 36,500 CP 33,501 -8.22%
15/ 01 /2021 16:00 16/ 01 /2021 16:00 1 day OP 35,611 CP 37,463 +5.2%