CLEOone

The simplest DOT strategy, rivaling its epic buy-&-hold returns

BINANCE:DOTUSDT   DOT / TetherUS
DOT went on a tear in the past few months so it's no supprise that taders are looking at it. If you were holding DOT in the past 6 months you'd be enjoying your +428% gains.

WILL POST EVRY POSITION (open/close price, % gain/loss and time and durration) GOING BACK 6 MONTHS AT THE BOTTOM. I can keep updating if there's interest.

Empiricaly we traded the DOT/USDT pair with many different strategies. Yet this one stands out with it's simplicity and periferarl rules that always have you be in the action. In the same 6 months, on the 1H chart this simple strategies is acctualy beat HODLING by a few % on spot, so it could have immense potential.

The goals of the strategy:
- hold long positions most of the time
- have the opportunity to jump back in quickly - it's a trending asset in a bull run so this is a must
- high Sortino ratio - great mesure of volatility , accounting only for negative drawdown. With a volatile asset it makes sense to use it as in the crypto space volatility will be plentifull and you want the good kind. The higher the better. Greater than 2 is conventionaly considered as good.

The rules:
We initialy started with correlations to other assets, but as soon as it was clear that DOT is on an epic run there was the chance to trade based on the strengh of the move. After plentifull experimentation the winner was...the humble RSI:
Open position when: RSI is above 45
Close position when: RSI is above 75
The periferal rules that made the strategy:
- if both the close and open positions are fufilled at the same time we do not open a position (if RSI is 76 we are not going in despite the fact it is above 45 too)
- no stop loss or take profit - we have market based conditions on a trending asset that are respected religiosly
- if RSI is in the range of 45-75 we do open a position even if we close it quite soon. RSI at 74? Open a position and close it an hour latter if it reaches 75

The results:
As stated the strategy beat HODLing on sput by 2%. In tottal we took 30 trades in the past 6 months, winning 24 and losing 6. On average we held winning positions for 2 days, although sometimes it offered just quick scalps. The wins were on average 11.5%. When losing, we held longer on average 13 days with a mean loss of -8,35%.
Our Sortino ratio stands today at: 11.1 which is magnificent.

Further optimisations:
Tried a lot of options on closing losing positions sooner, but nothing worked too well. If anyone makes progress on this I'd love to hear it.

Why does this strategy work?
Your trading strategies need to be designed for the trading pair and market conditions you are in. A trending asset in a bull market? You want to be in most of the time, but protect yourself from the whipsaw. Bitcoin is one thing with institutions scooping up massive ammounts when price drops but alts are different. If things go south quickly - you need an out. Yet you need exposure most of the time. If you protect yourslef from the extremes you could be in a great position to profit.
Morover, this strategy is so simple to execute that you cannot go wrong. This builds confidence when using a trading system.

Feel free to backtest, papertrade or live trade this strategy on CLEO . one - you can do it all for free.

The positions:
16/ 01 /2021 22:00 - still open
3 days
OP 17.999

15/ 01 /2021 04:00
16/ 01 /2021 21:00
OP 13.901
CP 18.93
+36.2%

14/ 01 /2021 17:00
15/ 01 /2021 00:00
7 hours
OP 12.384
CP 14.486
+17%

14/ 01 /2021 15:00
14/ 01 /2021 16:00
1 hour
OP 12.335
CP 12.889
+4.49%

14/ 01 /2021 02:00
14/ 01 /2021 12:00
10 hours
OP 11.098
CP 12.299
+10.8%

14/ 01 /2021 00:00
14/ 01 /2021 01:00
1 hour
OP 10.942
CP 11.41
+4.28%

13/ 01 /2021 19:00
13/ 01 /2021 22:00
3 hours
OP 10.248
CP 11.126
+8.57%

01 / 01 /2021 03:00
13/ 01 /2021 15:00
13 days
OP 9.077
CP 9.5672
+5.4%

30/12/2020 03:00
31/12/2020 23:00
2 days
OP 7.5146
CP 9.0877
+20.9%

30/12/2020 01:00
30/12/2020 02:00
1 hour
OP 7.4666
CP 7.6536
+2.5%

29/12/2020 04:00
30/12/2020 00:00
20 hours
OP 6.3752
CP 7.5473
+18.4%

29/12/2020 01:00
29/12/2020 03:00
2 hours
OP 6.4351
CP 6.7684
+5.18%

28/12/2020 19:00
29/12/2020 00:00
5 hours
OP 6.1325
CP 6.5931
+7.51%

28/12/2020 13:00
28/12/2020 14:00
1 hour
OP 5.8079
CP 5.8765
+1.18%

17/12/2020 17:00
28/12/2020 09:00
11 days
OP 5.6291
CP 5.7812
+2.7%

13/12/2020 11:00
17/12/2020 11:00
4 days
OP 4.9099
CP 5.5787
+13.6%

30/11/2020 02:00
13/12/2020 10:00
13 days
OP 5.2519
CP 4.9321
-6.09%

20/11/2020 13:00
30/11/2020 01:00
10 days
OP 5.342
CP 5.292
-0.936%

20/11/2020 10:00
20/11/2020 12:00
2 hours
OP 5.2557
CP 5.4158
+3.05%

20/11/2020 08:00
20/11/2020 09:00
1 hour
OP 5.2217
CP 5.3243
+1.96%

17/11/2020 08:00
20/11/2020 03:00
3 days
OP 4.7893
CP 5.1763
+8.08%

26/10/2020 16:00
17/11/2020 06:00
22 days
OP 4.5701
CP 4.7599
+4.15%

22/10/2020 00:00
26/10/2020 13:00
2,690.4 DOT
OP 4.1329
CP 4.548
+10%

18/10/2020 08:00
21/10/2020 23:00
4 days
OP 4.095
CP 4.2292
+3.28%

09/10/2020 19:00
18/10/2020 07:00
9 days
OP 4.2872
CP 4.1131
-4.06%

12/09/2020 23:00
09/10/2020 18:00
27 days
OP 5.1501
CP 4.3215
-16.1%

12/09/2020 21:00
12/09/2020 22:00
1 hour
OP 5.1148
CP 5.2143
+1.95%

26/08/2020 18:00
12/09/2020 18:00
17 days
OP 6.3285
CP 5.115
-19.2%

25/08/2020 22:00
26/08/2020 17:00
19 hours
OP 5.4118
CP 6.4016
+18.3%

23/08/2020 16:00
25/08/2020 21:00
2 days
OP 3.91
CP 5.6611
+44.8%

Comments

This is quite spot on, great job!
+1 Reply
Thanks for sharing your strategy! But I have some question about settings.
Do you watch RSI on chart as 1hour basis or else? The term setting for RSI is basic as 14days?
+1 Reply
Thanks for sharing... I am also interested about the exact settings!
+1 Reply
@q1p0, Sorry for the wait and I should have made it clear. Yes just regular 14 period RSI. 1h Timeframe
Reply
I am impressed, I took a look at each one of the positions you have taken, this strategy is incredibely efficient. I will be looking forward for your updates. Cheers. Will you touch other major alts too ? ETH ? LINK ?
+1 Reply
CLEOone emenioui
@emenioui, Thank you! I have something on LINK I am toying wth I might put it together and add it.
Reply
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