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xyse
Oct 30, 2019 2:53 PM

Stock to Flow Model with Standard Deviation Bands 

Bitcoin / U.S. dollarBitstamp

Description

This Study takes the Stock to Flow Model for Bitcoin as presented by 100trillionUSD and smoothes it using an SMA. Then it calculates the close's standard deviation from it and displays the 2-Sigma Bands.

The stock to flow model seems to be one of the best predictions of Bitcoins price.

The standard deviation bands are supposed to show situations in which Bitcoin is significantly over- or under-bought.

Release Notes

Added option to change the standard stock to flow model values.
Comments
gon1111
Hello Xyse, many thanks for this script, it works like a charm (have been using it for months!).
I just have a question: why did you pick the default parameters 0.4 and 3 for the multiplier and exponent respectively?
I had a look at Plan B (@100trillionusd) methodology and wasn't able to find those figures.
Thank you in advance for you reply. Admire your work
xyse
@gon1111, Check Plan B's inital post about the model on his Medium (medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25). There is this Picture with the Parameters of the Equation. (miro.medium.com/max/700/1*YvqgE9q1UBOKT_rPAFH4Ew.png)
gon1111
@xyse, Awesome, many thanks for the prompt and helpful reply!
piespe
Very interesting. If I remember correctly the S2F used a couple of parameters. Like the exponent at which it should be elevated to, and so on. How did you handle that? Would it be possible to have that as a parameter?
xyse
@piespe, Yeah, its in line 17. I'll make an update so you can adjust the values. Have a nice day! (After the update its line 19)
piespe
@xyse, Thanks!
liontiger1
Were these bands made to fit the data before 2019 or just happen to be that way?
xyse
@liontiger1, Just happen to be that way :) The stock to flow model itself might be fitted though.
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