1/ Breakout of the 30-day high on Bitcoin. How to profit from crypto volatility and avoid deep drawdowns. This time with complete Tradingview's Pine Script.
2/ Crypto is a breakout market. I write about it very often. The biggest edge you will find is in breakout trading. The reason is simple. Crypto is full of amateurs that jump on the latest trends and hope that this particular coin will make them millionaires.
3/ It rarely works. But we algorithmic traders can systematically profit from this "dumb money". What's the biggest difference between us and the amateurs who jump on these trends?
4/ We know when to exit the trade. And we apply this exit to the market systematically based on a tested strategy. One of the biggest differences between professionals and amateurs!
5/ We also know that we're going to have losing trades. And there's gonna be a lot of them. That's why we only risk a small portion of the account on one position. But now to the specific strategy. I think you'll be surprised by its simplicity...
6/ Rules of the strategy: You trade on daily charts. Entry: Close on the daily chart closes above the highest high of the last 30 days. Exit: Close position after 3 days in the trade on the close of the daily bar.
7/ This is how simple an algorithmic strategy can be. Take a look at the equity chart of this strategy on Bitcoin and compare to Hodl. This strategy has only a 22% drawdown, compared to the 83% drawdown when HODLing, with a 60% win rate and only 17% of the time in the market.
8/ 17% of the time in the market means that 83% of the time you only hold stablecoins in your account. This gives you several options to further appreciate the available capital. One option is to trade this strategy on multiple coins.
9/ This is what the equity curve looks like for the same strategy that trades 10 coins together. So you put 10% of your trading account into each one. Coin selection is similar to our Trend Catcher strategy. Its full description can be found on our Robuxio website.
10/ If you want to test the strategy yourself in Tradingview the steps are as follows: - retweet the first tweet of this thread - DM me "Breakouts" I will send you a link with the Pine Script code and a description of how to use it.
@PKycek breakouts