2/ My opinion is that beginners and intermediate should focus more on longer term strategies. They tend to be more robust. But you are often interested in faster trading systems. That's why we're going to break down this strategy today.

3/ Just keep in mind: You have to take much more into account like slippage in executions, fees, differences between bid and ask, etc. On the other hand, faster trades are a decent diversification for long term trades that last for weeks.

4/ Basic description of the system: You buy bitcoin when the RSI(3) closes above the 80 level AND daily close is ABOVE its 20-day moving average. You close the trade when the RSI(3) closes below the 50 level.

5/ Results from 2015: Profit: 32.903% vs Bitcoin holding: 9.573%. Drawdown: 40% vs Bitcoin holding: 84%. Triple the profit at half the drawdown! Plus, you're out of the market 70% of the time - you're not in the trade.

6/ Below you can see the evolution of the results by month and year. It is logical that as Bitcoin is growing slower, the strategy also has a lower profit. This is expectable.

7/ On the other hand, the strategy did well in 2022. Drawdown was only 20% vs. 62% when holding Bitcoin. We were simply out of the market most of the time. The strategy even made a small profit of 17%!

8/ It should be kept in mind that such a strategy does not work on small coins that have a large number of false breakouts. The drawdowns are too high on low cap coins. In these, we need to apply additional filters so that we do not enter every potential trade.

9/ Do these studies make sense to you? Is there anything I should add to them? I will be glad for any opinion. If you liked the thread, I'd appreciate a like or share. Thank you. Pavel

@PKycek @UnrollThread