The compression of volatility usually leads to expansion. When the breakout comes, it can ignite strong trends. One way to catch a coin trading in an accumulation area is to spot three moving averages with values close to each other. The strategy uses a combination of Moving Averages to spot the best time to buy a coin before its breakout.
Buy Condition
The MA200 is greater than the MA100 The MA50 is greater than the MA100
According to backtesting results, the 1-hour time frame is the best to run this strategy.
Sell Condition
*Take Profit: the price increases 8% from the entry price Stop Loss: the price drops 4% from the entry price
The strategy has a profitability of 40-60% (depending on the market conditions). Having a ratio of two between Take profit and Stop Loss helps keeping the strategy profitable in the long term.
릴리즈 노트
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The compression of volatility usually leads to expansion. When the breakout comes, it can ignite strong trends. One way to catch a coin trading in an accumulation area is to spot three moving averages with values close to each other. The strategy uses a combination of Moving Averages to spot the best time to buy a coin before its breakout.
This setup helps catching also early reversals at the end of downtrends.
Buy Condition
- The MA200 is greater than the MA100 - The MA50 is greater than the MA100
According to backtesting results, the 1-hour time frame is the best to run this strategy.
Sell Condition
Take Profit: the price increases 8% from the entry price Stop Loss: the price drops 4% from the entry price
The strategy has a profitability of 40-60% (depending on the market conditions). Having a ratio of two between Take profit and Stop Loss helps keeping the strategy profitable in the long term.
릴리즈 노트
⋅
The new Script adds the commission to the trades. Now a trading fee of 0.1% is taken into account.
The strategy in the new version trades only with 30% of capital to make the results more aligned to a real-use case.
After backtesting different setups, the take-profit and stop-loss percentages are revised to increase the average return and reduce the standard deviation or the results.