Hey everyone. As we deal with trading all day, now in our virtual office we wanted to look into creating a trading strategy for Bitcoin in these uncertain times.
It needed to be a HODL friendly strategy with few trades and strong safeties. For this purpose we went with the daily timeframe (D1).
What we came up with has 2 open conditions:
- Price needs to be above 3000 and above EMA(20)
- Latest candle needs to be a bullish engulfing and Price needs to be above EMA(20)
So you open your position in one of the two cases.
As a close condition we have 2 rules:
Bitcoin market Cap needs to be down by 5% in the last day AND price needs to be below VWAP (lower band, 2 standard deviation).
No Stop Loss as the Close function is keeping an eye on the market and its sentiment.
Asset management: your funds need to be in fiat or a stablecoin which you like to trade.
We always trade with 100% of funds. Plus an unrealistic take profit at 100,000 so you have the ability to jump out of the market if things go south.
Here are the results when the strategy is tested on 5 years with gains of 4,240%:
20 trades in total with 11 wins:
If you simply holed those 5 years your results would be 2,810%. The beauty of this strategy is that it takes you out before big downturns like what was happening earlier this March:
Hope this helps some of you. The details of the strategy are here.
Let me know in case of any questions or comments.