CleoFinance

Volume based approach to trading smaller caps - +1130.8 % in 6m

HITBTC:KINBTC   KIN / Bitcoin
This week we are demonstrating a volume based trading approach on KIN, but it can be adapted and used to trade other projects. The goal is to have a completely volume based trading approach. With smaller projects that can be all you need to predict the next move - in fact this strategy racked in +1130.8% in the past 6 months. Compared to KIN's 475% appreciation, the result of the strategy is stellar.

We'll be using OBV to gauge volume. On balance volume shows a total of the asset's trading volume and indicates whether this volume is flowing in or out. If you want to find projects that will be trending OBV is a great tool to see if there is potential. The swings on smaller market caps can be higher so adjust accordingly.

WILL POST POSITIONS BELOW

The goal of the strategy:
- to beat holding KIN in that period
- a dynamic strategy that has us in a position most of the time, exits when volume is outflowing
- work with % changes in OBV rather than numbers as we want to be potentially able to use the strategy on another pair
- simple to track and execute

The strategy:
Initially we tried to catch the breakouts by involving other indicators too, but upon experimentation they proved to be unnecessary. This was the most fruitful set-up.
1 H chart
- open position when: OBV is up by 2% in last 2 days
- close position when: OBV is down by 3% in last day
- no SL/TP - only market based conditions
- do not open a position is both the open and s are correct at the same time.
If you find it difficult to manually 1track those OBV changes they can be automatically tracked in CLEOone.

The results:
This strategy brought +1130.8% in the past 6 months, beating holding KIN which would have you at +475%. Not only does the strategy win more positions than it loses (290 vs 273) it also wins more than it loses on average - +4.07% vs -2.95%. The average position was held for 2 hours with almost 4 positions open per day.

The positions:

23/03/2021 18:00
23/03/2021 19:00
1 hour
+5.19%

23/03/2021 08:00
23/03/2021 11:00
3 hours
+7.46%

23/03/2021 01:00
23/03/2021 03:00
2 hours
-4.52%

22/03/2021 20:00
22/03/2021 21:00
1 hour
-1.46%

22/03/2021 12:00
22/03/2021 18:00
6 hours
+2.91%

22/03/2021 09:00
22/03/2021 10:00
1 hour
-4.06%

22/03/2021 01:00
22/03/2021 08:00
7 hours
+23.8%

21/03/2021 22:00
22/03/2021 00:00
2 hours
-2.43%

21/03/2021 20:00
21/03/2021 21:00
1 hour
+0.781%

21/03/2021 18:00
21/03/2021 19:00
1 hour
+1.16%

21/03/2021 13:00
21/03/2021 14:00
1 hour
+3.42%

21/03/2021 08:00
21/03/2021 09:00
1 hour
+0.727%

21/03/2021 05:00
21/03/2021 07:00
2 hours
-1.44%

20/03/2021 14:00
21/03/2021 04:00
14 hours
+27.3%

20/03/2021 10:00
20/03/2021 13:00
3 hours
+11.5%

20/03/2021 07:00
20/03/2021 09:00
2 hours
-2.03%

20/03/2021 05:00
20/03/2021 06:00
1 hour
0%

20/03/2021 02:00
20/03/2021 03:00
1 hour
+1.02%

20/03/2021 00:00
20/03/2021 01:00
1 hour
0%

19/03/2021 13:00
19/03/2021 20:00
7 hours
+2.7%

19/03/2021 11:00
19/03/2021 12:00
1 hour
KIN/BTC
-3.61%

19/03/2021 09:00
19/03/2021 10:00
1 hour
+1.05%

19/03/2021 05:00
19/03/2021 08:00
3 hours
0%

18/03/2021 21:00
18/03/2021 22:00
1 hour
0%

18/03/2021 19:00
18/03/2021 20:00
1 hour
+1.66%

18/03/2021 17:00
18/03/2021 18:00
1 hour
0%

18/03/2021 14:00
18/03/2021 16:00
2 hours
+0.549%

18/03/2021 10:00
18/03/2021 11:00
1 hour
+0.538%

18/03/2021 07:00
18/03/2021 09:00
2 hours
KIN/BTC
-1.1%

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