Topic: 31 days later.. Testing own strategy (Read 264 times)

GOOD! Now from the period of 2020 to 2023, compare your performance vs. a Bitcoin Buy and HODL strategy using the same amount of starting capital, $1,000.

If your performance is lower, then you need to improve the strategy, and/or add the more volatile shitcoins to trade. Many shitcoins usually perform better than Bitcoin during the bull cycle simply because "reasons". That doesn't mean they're the bes though.

If your perfomance is only slightly better, then if you ask me, the risk taken by a more active trading strategy is simply not worth it in my opinion.

I'm not familiar with how TradingView rewards its publisher, but do you really need to pay them and must have at least 20 subscribers before you make a profit? The numbers seem to come out of nowhere. I never heard similar things from others who create new threads and wanted to share their strategy with others. Personally, I also feel less inclined to join a random group just to know if it works or not, especially if the members are so few.

Hello, I have downloaded the backtest data so that you can better visualize the strategy I am implementing. The backtest covers the period from 2020 to 2023 with a capital of $1,000. In the following link, you will find the spreadsheet where everything is more detailed. Thank you very much for your feedback.https://docs.google.com/spreadsheets/d/1TCRy0wyyBBvGvz8p2wEyB2RcslsJvZ9eN0gGrHWJOjo/edit?usp=sharing
PLEASE CHECK THE BACKTEST

I need more than 20 people to be able to publish the strategy on TradingView and not waste money in vain. If you want to try it, please join the Telegram group, and when we reach 20 people, I will upload the strategy along with a manual for its use. Thank you.

Do you have a specified amount of profit or stop loss you are willing to take per trade or is that all random for you?

Most important detail you've omitted so far is your stop loss, whether you have any, what's the maximum drawdown / month and overall according to your parameters. What are the backtest results if you have any, would be interesting to see how strategy performed over the years when Bitcoin was trending

Although, intra-day back-tests are not available for free. But TradingView does have a 30-day free trial. Plus for plebs, it's probably better to use lower time preference strategies.

So what is your telegram group for?

It's been 31 days since I started testing a strategy I designed in TradingView, applying my knowledge in trading and investments. This is a continuation of my previous post https://bitcointalksearch.org/topic/is-a-20-annual-return-good-5468812 in which I asked whether achieving an average annual return of 20% was considered good. There were several interesting comments, with some people saying it's a good return for spot trading, while others felt it's a very low return due to the high risk and volatility in the cryptocurrency market. Some mentioned that for a small capital, it might not be worth the effort for such a small gain. I'd like to address some of the points that came up in the post.


Edit
I've created a Telegram group where I'll be sharing my daily trades. It's free, so feel free to join if you'd like. https://t.me/CryptoBeeStrategy

It would have been more better if as many as possible traders can also take their time in making some discoveries on new strategies and develop them for their personal use and for others to give a try on, so many people have already put in efforts in many ways that make us have the experience in what we are now using today which some of them are what we called trading indicators and many more.

It's been 31 days since I started testing a strategy I designed in TradingView, applying my knowledge in trading and investments. This is a continuation of my previous post https://bitcointalksearch.org/topic/is-a-20-annual-return-good-5468812 in which I asked whether achieving an average annual return of 20% was considered good. There were several interesting comments, with some people saying it's a good return for spot trading, while others felt it's a very low return due to the high risk and volatility in the cryptocurrency market. Some mentioned that for a small capital, it might not be worth the effort for such a small gain. I'd like to address some of the points that came up in the post.

**Risk Management:**
The strategy divided my capital, and the  involves making multiple purchases as the price drops, averaging the cost, and selling when a certain profit-taking level is reached. In the Google Sheet I'll share, there's a sheet defining the risk and why I consider it a medium-to-low risk strategy.

**Trading Operation:**
My strategy is designed for Bitcoin, but it can work with other cryptocurrencies. I primarily use a 3-hour timeframe.

**Time and Management:**
You don't need to be in front of your computer all the time. Once I get a signal on TradingView, it sends a notification to the app and email with the quantity of BTC to buy and the price. Placing the buy limit and sell limit orders takes just one minute, which I find manageable for a 20% return.

**Performance in 31 Days:**
I've completed six trades, including both buying and selling. Over these 31 days, I've achieved a return of 1.91%, which translates to a daily return of 0.06%. Projected over a year, that would be 22.52%, but this can vary based on market behavior. It's important to note that this is in the spot market. Can it be done in futures? Yes, and with leverage (2x or 3x), you can easily reach 60% to 70% returns due to compound interest. However, I prefer the spot market as I see it more as a long-term investment.

Here's the link to the spreadsheet https://docs.google.com/spreadsheets/d/1nfNuJB5ZkewvZ8A9ACPJik0p3Vq1g-TO/edit?usp=sharing&ouid=105063930982027234018&rtpof=true&sd=true where you can see all the trades I've made, a screenshot of how the strategy operates on TradingView, and a sheet of risk. I'll provide another update at 60 days and continue until I reach 180 days, which will conclude my testing, and then I'll consider adding more capital. Feel free to ask anything...

Edit
I've created a Telegram group where I'll be sharing my daily trades. It's free, so feel free to join if you'd like. https://t.me/CryptoBeeStrategy

It would have been more better if as many as possible traders can also take their time in making some discoveries on new strategies and develop them for their personal use and for others to give a try on, so many people have already put in efforts in many ways that make us have the experience in what we are now using today which some of them are what we called trading indicators and many more.

So what is your telegram group for? to learn from each other about the strategy you are testing or is it a place where you share when taking positions in buying or selling trades? I'm not really interested in joining any groups about trading because they are usually just places to share signals.
As long as you trade in Bitcoin and the spot market, the risk can be very regulated because even though the price of Bitcoin has decreased, in some time it will bounce back, and you are right in saying that if we have a strategy then we don't have to stay in front of the computer to pay attention to the charts because with that strategy Usually, traders will know when to open a position.

20% annual profit is good, it is better than losses. If you are trading, as you are increasing your risks, you are increasing the probability of you to lose. With low amount of money, likely you may want to use leverage which is riskier. It is good to go slow in trading than thinking big that can result to losses.

There were several interesting comments, with some people saying it's a good return for spot trading, while others felt it's a very low return due to the high risk and volatility in the cryptocurrency market. Some mentioned that for a small capital, it might not be worth the effort for such a small gain. I'd like to address some of the points that came up in the post.

**Risk Management:**
The strategy divided my capital, and the  involves making multiple purchases as the price drops, averaging the cost, and selling when a certain profit-taking level is reached. In the Google Sheet I'll share, there's a sheet defining the risk and why I consider it a medium-to-low risk strategy.

**Performance in 31 Days:**[/b]
I've completed six trades, including both buying and selling. Over these 31 days, I've achieved a return of 1.91%, which translates to a daily return of 0.06%. Projected over a year, that would be 22.52%, but this can vary based on market behavior. It's important to note that this is in the spot market. Can it be done in futures? Yes, and with leverage (2x or 3x), you can easily reach 60% to 70% returns due to compound interest. However, I prefer the spot market as I see it more as a long-term investment.

I asked whether achieving an average annual return of 20% was considered good.
...


**Risk Management:**
The strategy divided my capital, and the  involves making multiple purchases as the price drops, averaging the cost, and selling when a certain profit-taking level is reached. In the Google Sheet I'll share, there's a sheet defining the risk and why I consider it a medium-to-low risk strategy.