Battle-tested through the ups and downs of Etherium historyA trading strategy that's been battle-tested through the ups and downs of Eth's history. This strategy doesn't blink in the face of market chaos or get swayed by emotions. It's a calculated game plan that knows when to step in and when to step back.
Compare that to emotional investing, where fear and greed call the shots. Imagine making decisions when you're on an emotional rollercoaster—buying high in excitement and selling low in panic. That's a recipe for disaster.
A backtested risk-managed strategy, though, is like a cool-headed coach that sticks to the game plan no matter what. It's about discipline, rules, and consistency. So, do you want to ride the emotional wave or play the long game with a strategy that has been consistently profitable year on year since 2016 (start of Eth - substantiated by backtest data).
Average annual net profit (substantiated by the backtest)
196% (No Leverage) & 661% (3x leverage)
This year (Jan 2023 to Sep/15th/2023) has already generated
45.21% (no leverage) 144.93% (3x leverage) in net profit.
This strategy does Not re-paint, No-look ahead bias. and 100% forward tested. Tradingview has a default caution for strategies that use the multitimeframes data. This does not apply to this strategy as all calculations are based on closed bars.
So how does it work?
Postions are entered based on RSI Divergence on Higher Timeframes and confirmed by the ATR.
Stop Loss and Trailing ATR-based Take Profit:The strategy incorporates a risk management mechanism with a built-in stop loss set at 8%. Additionally, it employs a trailing take profit mechanism based on ATR. This means that as the trade moves in the desired direction, the take profit level adjusts itself based on the current volatility, allowing for gains to be secured as the trend progresses.
SMI-based Re-entry after Stop-out:
Stochastic Momentum Index (SMI) is used as a re-entry signal if the trade is stopped out (i.e., the stop loss is triggered). This re-entry is contingent on higher timeframes and ATR still supporting the original trend, indicating that the initial stop-out may have been a false signal.
Portfolio Reinvestment for Compound Growth:
The strategy allocates 95% of the portfolio's capital to each trade.
This approach maximizes the potential for compound growth, as a significant portion of the available capital is reinvested in each trade, provided that risk management rules are satisfied. This approach is appropriate for this strategy as strict risk management is applied and the winrate is almost 50%
Accounting for Exchange Fees:
Exchange fees, set at 0.1%, are factored into the strategy's calculations.
This ensures that trading decisions take into account the cost of executing trades on the exchange.
Avoiding Lookahead Bias and Repainting:
The strategy is designed to prevent lookahead bias by making calculations based only on closed bars of price data. Lookahead bias occurs when future data is used to make past trading decisions, potentially leading to unrealistic expectations.
