Just try simulating it.
If you're not pulling live data (eg importing open and close prices into excel) then you're going to have to remember to factor in candle closes on any bot you build to trade this (or wait for the candle to close).
You might also want to add trading fees to the simulation as those could turn something that makes a profit into something that doesn't...
Topic: Trading on up trend and stop losing on down trend - page 2. (Read 183 times)
Me and my friend are newbies and would like to try the following strategy and would love to hear your opinion about it:
It is probably a known strategy which is based on trends, but we don't know how it's called, therefore cannot find info specifically about it.
The concept is:
Whenever the trend goes up we hold the position.
Once it goes down 1% (or any other % that we will set), we are selling it, expecting a down trend.
Then holding to that until it goes up again 1%.
Summary:
- We hold to it as long as it goes up
- We sell once it went down at least 1% (expecting a down trend)
- We buy it again when it went up 1% (expecting an up trend)
In our excel simulation it was almost as good on an up trend and loss was significantly lower on a down trend.
Sorry in advance if the question is very basic.
Here is a small illustration of the concept.
Green arrow - buy
Red arrow - sell
https://pasteboard.co/JLThBHL.jpg
It is probably a known strategy which is based on trends, but we don't know how it's called, therefore cannot find info specifically about it.
The concept is:
Whenever the trend goes up we hold the position.
Once it goes down 1% (or any other % that we will set), we are selling it, expecting a down trend.
Then holding to that until it goes up again 1%.
Summary:
- We hold to it as long as it goes up
- We sell once it went down at least 1% (expecting a down trend)
- We buy it again when it went up 1% (expecting an up trend)
In our excel simulation it was almost as good on an up trend and loss was significantly lower on a down trend.
Sorry in advance if the question is very basic.
Here is a small illustration of the concept.
Green arrow - buy
Red arrow - sell
https://pasteboard.co/JLThBHL.jpg
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