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trading strategy for the busy person

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.

You can use the time frames given by the exchange, if a time frame is not available then you’ll need to use re sampling of lower time frames to higher 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.

Resources for traders by Fallible

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 freqtrade

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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.

backtesting sma 200 1d until September 29

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The trade would still be open and would look like this on tradingview:

It’s very likely that this strategy would sell BTC at the end of September 2019 as the price is below the 200 SMA on the daily time frame.

Backtesting on Coinbase

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Conclusion

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.

Past Performance is Not Indicative of Future Results.
Survivorship bias is the tendency to view the performance of existing stocks, funds or cryptocurrencies in the market as a representative comprehensive sample without regarding those that have gone bust. 

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.

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