Trading Ethereum Profitable: Strategy Example (With Backtest)Ethereum made a new all-time high, rising over 20% from its previous ATH. Let's take a look at how you can trade Ethereum and take advantage of these uptrends.
Finding the Trend:
To make a successful strategy, we should start by identifying the trend. We can do this with the help of a trend-following indicator that will act as a filter. The MESA can work well here, this particular setup will keep a buy signal as long as the MAMA is above the FAMA.
In this example, we have changed the MESA's default values to Fast Limit 0.1 and Slow Limit 0.001. This change made the indicator less reactive to the price and better at finding long-term trends.
Entries & Exits
We then need an indicator that can find suitable entry points. For this example, we have chosen the MACD. Thus we will only take trades when the MESA displays bullish momentum and when the MACD gives a buy signal.
For the exit, you can use a strategy or sell settings. We have chosen to use the MACD again to time our exits. This is because Ethereum's trend is irregular; sometimes, it may be less volatile, while other times a lot more. Thus the MACD should be able to take full advantage of this volatility. Therefore our strategy will sell when the MACD gives a sell signal.
Results: In short, our strategy would look like this: enter when both the MACD and modified MESA give a buy signal and exit when the MACD gives a sell signal. We performed a backtest on ETH/USD (Kraken), with all the available equity used on each trade, a 0.1% fee was taken into account. This resulted in a profit of 164,121%, similar to the buy and hold of 179,352%. However, the strategy is less risky than the buy and hold as it doesn't lose much in a downtrend. Remember, this is just an example for you to create a suitable strategy, and not a recommendation.
Mesa
US Stock In Play: $MESA (Mesa Air Group Inc)$MESA traded with a substantial day gain of +9.01%, closing at a 52 weeks high of $14.16 this morning. Share price of $MESA have doubled from $6.80 within a short span of four trading weeks, upon breaking out of a Symmetrical Triangle chart pattern with flattening volume and implied volatility over the course of two months. This price action behavior also confluence with a whipsaw around its 20DMA, implying indecisive drift in consolidated price action.
The next immediate resistance for $MESA to challenge is at $16, which was last traded in November 2018.
$MESA operates as the holding company for Mesa Airlines, Inc. that provides regional air carrier services under capacity purchase agreements with the American Airlines and the United Airlines. As of September 30, 2020, it operated a fleet of 146 aircraft with approximately 373 daily departures to 102 cities in the United States and Mexico.
AUDUSD - SellThis is my personal opinion and view of the market...
My own strategy suggests a sell, have some buyers trapped, expecting the triangle to breakout upwards, however I dont think so, I entered the position already as a short, this are my stats:
Entry @ 0.72609
TP @ 0.72101
SL @ 0.72905
1.5 Ratio
EURGBP - LongLately, I been going against the crowd. After 90% of all traders loose money, so I won't be going short in this one as many traders are at this level, but long. Just as how I did in my GBPJPY idea in which we took some profits home!
This one is only one take profit, more than 5% of sellers are under 0.8995, so the price will most likely go up in my personal opinion.
Entry @ 0.89987
SL @ 0.89815
TP @ 0.90201
GBPJPY - LongWe are never shown the real picture until its too late... If you ask me right now, ill never go short even if it seems like we are at a major resistance if you see it through technical analysis... Too many bears are at this small range (highlighted in purple), and so I believe they will be wrecked. Stop loss is tricky here, im just guessing...
GBPJPY
Entry @ 139.747
SL @ 139.156
TP @ 140.217
TP 2 @ 141.300
EURCHF - ShortIm personally shorting EURCHF at this time, a single take profit.
¿Why?
1) Sellers have open orders @ 1.075, which are real orders and not a spoof (type of manipulation) as they are resisting, so this is a real resistance level
2) There is a support @ 1.07450, however it does not appear in the order book. My best shot? Hidden orders, which means someone does not want the price to go down, "yet". They are trapping liquidity
3) 4% of bulls are trapped between 1.07500 and 1.07550
4) Possible bull trap?
Please close trade manually at 3:40 PM if TP or SL have not been hit
Entry @ 1.075
SL @ 1.076
TP @ 1.073
Crypto Trading 101: Making A Profit With The ADXWhat Is The Average Directional Movement Index (ADX)?
The ADX is an indicator used to identify the strength of a trend. The higher the value of the ADX, the stronger the trend. Today, we will explore how you can incorporate the ADX in your trading!
How to use the ADX
Because the ADX determines the strength of a trend, it works best when paired up with a trend-following indicator. Examples of trend-following indicators include the DMI, SMA, EMA, DEMA, Hull Moving Average, MESA, Parabolic SAR, KAMA, T3, TMA, WMA, TEMA, MACD, etc. The ADX often comes together with the DMI (Directional Movement Index), as its the case on Tradingview. We have hidden +DI and -DI in our graph, and therefore we only view the ADX.
Today we have chosen to combine the ADX with the MESA to create an exceptional strategy.
For this example, we have chosen a threshold of 25 for the ADX. Thus, for MESA signals to be valid, the ADX will need to have a value greater than 25. To make the value of the ADX easier to identify, we have added a horizontal line to represent the threshold visually. Therefore, as seen in the graph, each time the pink line is above the black line, the ADX indicates a strong trend.
The MESA indicates a bullish momentum when the cloud turns green. This strategy will only open a position when the MESA is green while the ADX has surpassed its threshold.
To exit positions opened by this strategy, we have used the following settings:
Take Profit 15%
Trailing stop loss percentage 2%, arming trailing stop loss 5%
Stop-loss 4%
You can add these settings to your hopper by going into the config/baseconfig/sell settings.
Trade with the trendCryptohopper Newsletter
Chart
Bitcoin has retested the support at 8,500$ after having dropped more than 20% from this year’s high two weeks ago. The price is now moving higher and retesting the resistance at $9,000
Trade with the trend
Bitcoin has some of the most spectacular swings out of all the assets in the world. It can rise hundreds of % in an uptrend and then fall more than 80% in a downtrend. As such it is important for traders trading on the smaller time frames to trade with these trends and not against them. Trading against the trend is one of the most common mistakes new traders make.
For this week’s analysis, we will look at how we can identify a general trend and how we can trade with it.
Let’s dive deeper into how you can trade the trends within the BTC/USD market!
Identifying the trend
First off, we must choose the timeframe in which we want to place our entries and exits; let’s take the 4h chart as an example. Then, we must look at an order of magnitude larger , Alexander Elder described an order of magnitude larger as a factor of 5 . In our example we can take the daily chart as our larger time frame.
Then, we can use a trend-following indicator to identify the trend on the respective timeframe. The MESA is a good example of a trend following indicator. By using the MESA and only trending in the “green zone” we can ensure that we will always trade with the broader trend .
Identifying the pull-backs
A momentum indicator can work well in identifying the pull-backs on a smaller time frame. Let’s take Williams % as an example. This indicator can be used in identifying the oversold zones and timing your entries in the market .
A trailing stop loss can then be used in order let your position run along with the general trend and not exit prematurely.
You can find both the MESA and Williams % along with many more indicators in our strategy section; you can set them to any timeframe you desire!
USDCHF / 2H / ForecastIll take this trade if the price follows this instructions:
1) Price reverses from the current position, all the way to an important support @ 0.98486
2) When at support, ill take the trade as following:
Key Points:
Entry : 0.98486
Take Profit : 0.99355
Stop Loss : 0.98276
Ratio : 4.14
Good luck and happy trading!
EURUSD Long / 2H / ForecastHello traders, this is how I will trade EURUSD if the chance is given.
1) Price must reverse and re-test support level at 1.12049
2) When price hits that support level this trade will follow:
Key Points:
Entry : 1.12049
Stop Loss : 1.11907
Take Profit : 1.12947
Ratio : 6/1
Good luck!
Emiliano Mesa is Back. GBPUSD ShortHello traders! Im backkk to forex better than ever! Lots of time to learn, many new indicators, and lots of hard work and discipline. Ill start sharing my analysis and ideas here again, so thanks for the followers and likes all support is apreciated.
Price reached a resistance zone and close above it forming a divergence. Now we will wait for the price to close under the the broken resistance zone (currently support) highlighted by my indicator. Ill go short after a clear close under the support zone.