Let’s assume you like trading or that you trade once a month, then why not try to automate it? People like that normally want to know what is the best trading strategy for the busy person.
Using freqtrade you can use strategies that work on the daily, weekly, 3 days and even monthly time frames.
Binance provides 1d, 3d, 1w and 1M (not to be confused with 1m which corresponds to 1 minute). We shared this strategy in our private freqtrade community, inspired on the following youtube video.
The question is would this strategy that trades once a month work for bitcoin? Let’s find out
Logic of the strategy
A trading strategy for the busy person will have a logic like this:
To buy: If the price of the asset AT the end of the month closes above 200 simple moving average then BUY To sell: If the price of the asset AT the end of the month closes below 200 simple moving average then SELL
Implementing it with freqtradeWhoops, this content is for members only. If you have a membership, please log in. If not, you can definitely get access by buying one of our plans! Purchase the essential plan or Purchase the Professional Plan .
Backtesting on Binance
Binance has only been around since 2017, if we test this strategy from 2017-11-03 then we’ll get roughly 53.35%, which is not bad. Do know that freqtrade can’t calculate 200 SMA if its missing 200 candles to calculate it, meaning that it would’ve only performed 1 trade.
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The trade would still be open and would look like this on tradingview:
Backtesting on CoinbaseWhoops, this content is for members only. If you have a membership, please log in. If not, you can definitely get access by buying one of our plans! Purchase the essential plan or Purchase the Professional Plan .
Taking in consideration that this is something that would’ve required from you barely any intervention and that holding BTC strategy suffers from survivorship bias, we consider this strategy as viable in the long run with an average return of 370% yearly.
This trading strategy for the busy person icould be adjusted to multiple situations and markets.
We encourage the reader to try backtest this strategy on other crypto assets like Litecoin, Monero and Ethereum. We believe it would greatly help you sleep safe and sound while holding cryptocurrencies.