ETHUSDT Simple HMAs strategy that works

Simple trading strategies are the key to consistent execution. The problem is that traders often stick to conventional wisdom and settings when a few tweaks can take an ok strategy and turn it into a great one.

What we looked for in this strategy:
- simmplicity - not more than 1 or 2 indicators
- low drawdown
- higher timeframe that would yield swing trading opportunities

The Hull Moving Average
is meant to be responsive while filtering out noise and can be a great inclusion in your crypto trading strategies. It places greater emphasis on more rescent prices. Our strategy is again set on price crossing it up/down to open or close a position. The default period is 20.

So we set it up on the 4H timeframe as:
1. Open position when price is crossing HMA(20) up
2. Close position when price is crossing HMA(20) down
The results were profitable, but not close to buy and hold.

The testing continued and after a lot of experimentation we got our winner:
1. Open position when price is above HMA(30)
2. Close position when price is below HMA(70)

The results on spot were +204% in profits from October to January with a tiny drawdown of 4,3%. We has a tottal of 17 positions winning 9 and loosing 8. The average win was +18% and loss -1,3% putting us nicely in profits. The positions are held someimes for a few days and sometimes for hours.

Why does the modified strategy work? By expanding the length of the HMA for entries we removed false signals. Using a shorter HMA for entries than exits lets us be more agressive in entering positions, which we want in a hot market. Expanding the length of the exit HMA lets us hold positions for longer while still having a market based indicator to potect the funds.
By opening a position every time price was above HMA made us able to catch more opportunities and not wait for a cross.

Other rules:
No stop losses or take profits - all closes were market based. Feel free to experiment with your own version.
In cases where both the open and close condition were true (Price was above HMA30 and below HMA70) we do not open a position.

Comment:

The strategy got us out on the 10th at noon with Ehereum at 1,304.2 at a tiny loss. No entry signal as of yet, but plenty of capital available.

Trade active:

Adding some of the latst positions:

19/01/2021 02:00
20/01/2021 10:02
1 day
OP 1,320.8
CP 1,295.8
-2.09%

14/01/2021 10:00
18/01/2021 18:00
4 days
OP 1,146.5
CP 1,219.3
+6.13%