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BOOK YOUR FREE STRATEGY SESSION NOW >>Over the past few years, the cryptocurrency market has been subject to periods of significant growth but also sharp drawdowns. Just think of Bitcoin, whose dollar value fell from more than 65,000 (November 2021) to less than 20,000 (July 2022) in about eight months.
To make money in these markets, even in downturns, it can be helpful to turn to trading strategies that can take advantage of bullish and bearish trends, such as the strategies in this video.
These are two multi-market strategies (thus working on multiple cryptos simultaneously) that have produced excellent profits in recent times despite the sharp declines in cryptos.
Both are structured in a straightforward way, a sign that to make money on cryptos, you don't need to complicate your life!
Watch the video to find out:
The rules of the first strategy, which enters on major market swing points
The rules of the second strategy, which enters at the breakout of the highs and lows of N sessions
The real long and short performance of the two strategies
Enjoy the video! 😎
Hey everyone and welcome back to another one of our videos! One of the coaches at Unger Academy here and this is our usual chat about our best-performing strategies within our portfolio.
Today we’re going to be talking about Crypto because, as we know, it's a sector that has gone down so much, but despite that, some systems can exploit even a bearish trend in this market.
Alright, okay, so I’d like to start with a swing trading system, which, as you can see, is applied to many underlying assets and calibrated using different inputs to fit the characteristics of each market.
Let's look at it, for example, on Bitcoin. It's a system that works on swing points, thus the sensitive points in the market, the most significant resistances and supports. And when they are broken, it enters a position following the market trend, either long or short, and keeps the position open typically for a couple of days, in some cases even longer. As you can see, this is a reasonably long trend.
The bars are daily, and the system uses a dynamic position sizing, which means that depending on the volatility, it will use more or less capital to try to keep the risk unchanged in all market phases.
Let's look at its equity line, very linear. As you can see, we have data from a year and a half ago. If we look at the buy and hold of Bitcoin, it certainly isn't the best.
We saw a nice rise until March 2021, a subsequent decline, a further upward pump until the end of 2021, and a significant drop that is still ongoing.
Overall, the system has managed to produce good results both long and short. The metrics of the system are excellent. We even have a profit factor of 3.29.
We have an excellent net profit to drawdown ratio of about 6.2. In a short time frame, it's a good value. And the Average trade is well above 1% so it can cope abundantly with commissions and slippage.
As I mentioned, this is a multi-market system. We can take a quick look at other underlying assets as well. For example, let's take Ethereum and look at the performance of the system applied to this underlying asset.
Let's look at the equity line, which is undoubtedly very good. Bitcoin and Ethereum's equity lines are among the best.
Let's look at other underlying assets to get an overview. Well, even Aave has a nice equity line. Let's randomly choose: Solana. View, Strategy Performance Report. This one is also very nice.
LiteCoin, yeah, also a good equity line as well. This is a straightforward system. To be profitable in this market, you don't have to invent who knows what.
And I recommend that you try relatively simple logics on slower timeframes, such as a daily timeframe.
Let's turn now to a little bit faster trading logic, namely an intraday strategy, and let's look at another type of system that closes all trades at the end of the day, namely a pure intraday system, which goes to look for a volatility compression and following that, opens long and short positions at the break of n-bar highs or lows, a value that is optimized for a single underlying asset.
Again, the traded size is not constant but is adjusted based on market volatility. So, in high volatility, we'll trade with a lower size, and in low volatility, we'll increase the size precisely to maintain a constant risk in all market phases.
Let's look again at our system by seeing the performance on Bitcoin. This is the equity line. An equity line that is produced by both long and short trades. And I'd say it has performed very well, given the market performance.
Here we have a shorter time frame to evaluate the system. See here. We're talking about a couple of months out-of-sample, in this case.
The system is older, but here on the chart, we have a couple of months. This is a bearish trend. And the system has managed to do well both long, which is quite curious given the trend of the underlying asset, and short.
This is also a system that is multi-market and is applied to different cryptos. If I remember correctly, Bitcoin is one of the best.
Let's look, for example, at Ada, which isn't bad. Short and long. Long hasn't done much, understandably. However, the system is pretty close to a peak in equity.
We also have Ethereum here. Here it is. I’d say that the system on Ethereum hasn't performed well compared to other underlying assets.
Let's look, for example, at LiteCoin. It's located near a peak in equity.
We have a very short time frame on all these systems. Let's also look at Solana again. So here, Solana, I must say, has done quite well. Let's see the difference between long and short. Furthermore, it did better on the long than on the short.
So what’s the weak point of this system? Well, like all intraday systems, the Average trade is lower. We're slightly below 1%, which is still a good value allowing us to cope with slippage and trading commissions.
And guys, if there is someone among you who is interested in applying the algorithmic method, the Unger Method, to such a promising market as cryptocurrencies, I'll leave you a link in the description of this video,
through which you can access a free presentation by Andrea Unger, who will introduce you to his trading method, which enabled him to win the World Championship in real money trading 4 times.
You can also get the best seller "The Unger Method", covering only the shipping costs, or book a free strategy consultation with one of the members of our team.
Guys, that's all for today. I invite you to please leave a Like if you liked this video and please subscribe to our channel.
And with that, I will see you next time! Bye-bye
We'll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.
BOOK YOUR FREE STRATEGY SESSION NOW >>Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.
I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems.
In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.
Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.
Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.
