Traders like trading divergencies. They are easy to spot, can work on multiple time-frames, and as so many are watching them and acting on them they may become a self-fulfilling prophecy. Where traders tend to fail is being consistent. They never really write the rules by which their strategy is bound. This leads to random trading behaviour that cannot be analysed or improved. Not a way you want to be treating you trading funds.
Here we will demonstrate how to design a profitable crypto strategy that you can follow to the T. It brought in +413.91% in the last year on spot.
WILL POST EVERY POSITION BELOW
The strategy goals: - Use specific quantifiable divergencies - Use a momentum indicator - Beat holding Bitcoin The strategy: There are a few indicators you can use to craft these strategies like MACD, OBV or Stochastic. In this case we are going with RSI as one of the classic examples. Here are our strategy rules on the 15 min time-frame: - Open position when: BTC/USDT is down by 1% in past day AND RSI (14) is up by 1% in past day AND Price is below EMA(25) - Close position when: BTC/USDT is down by 1% in past day AND RSI (14) is down by 1% in past day AND Price is up by 5% in last 2 days No stop loss or take profit but these rules re followed 100% of the time.
The results: The strategy beat holding Bitcoin in the past year with +413.91% compared to 305.16%. The strategy is efficient as it managed to pull it off with only 30 positions. They are held for 12 days on average when winning, and 4 days when losing making this a swing trading strategy despite the lower time-frame. We won 22 positions with an average position of +9.12% vs losing 8 with an average of -7.87%. It would be good to follow this strategy as the larger the sample of positions becomes the better we can evaluate it.
The positions:
16/06/2021 19:30 16/06/2021 23:45 4 hours OP 38,940 -1.89% Still in position
12/06/2021 15:15 15/06/2021 13:45 3 days OP 35,539 CP 40,270 +13.3%
28/05/2021 16:30 10/06/2021 22:30 13 days OP 36,189 CP 36,790 +1.66%
22/05/2021 03:30 25/05/2021 12:30 3 days OP 37,012 CP 36,951 -0.165%
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