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Monitoring how the markets move can be very useful when you’re looking for new ideas for your trading systems. This week, we decided to focus on the cryptocurrency market, which thanks to its high volatility can produce good results when it is traded with a systematic approach.
In this video, in addition to our usual overview on the traditional markets and the rollovers of the next week, we focus on the short to medium-term performance of a group of cryptocurrencies that, in our opinion, are particularly interesting.
Hello everyone and welcome to a new episode of our weekly overview of the markets.
Before we start, if you haven't done it yet, I invite you to please subscribe to our channel and click on the bell to stay updated on our new content.
So, this week the markets didn't behave in a particularly interesting way. Actually, they moved in a mixed way, with a clear tendency to negativity. The most explosive market was certainly Natural Gas, which gained more than 8% over the last 5 days. As for the rest, there were many negative markets, including Meats, Soft Commodities, Grains, currencies, and also cryptocurrencies.
Since nothing very important has happened this week, today I'd like to show you something new – cryptocurrencies. At the moment, this market is one of the most interesting ones, and thanks to its explosiveness and highly-volatile nature, it can definitely be exploited with trading systems.
So let me show you a list of cryptos and see together how they're performing. The list you see here is obviously not complete. As you know, there are so many cryptos out there that it would almost be impossible to monitor all of them. That's why we decided to choose just about 30 cryptos that we consider to be the most interesting at the present moment.
This scanner shows the variation in percentage compared to yesterday, to 7 days ago, to one month ago, to 3 months ago, and to one year ago (when the historical data is long enough to allow for it of course). In this column, you can see the highest price ever touched by each crypto in the list. When one of these values is written in green, it means that the corresponding crypto is close to breaking its historical high, which can be an extremely interesting setup to use in simple trading systems for altcoins.
The chart in the lower right is not an indicator. Actually, it’s the equity line of a trading system that enters at the breakout of the historical high and closes all positions at the end of the day. This is a very simple and unrefined trading system that can nonetheless provide very useful information. Well, it doesn't work well on every cryptocurrency, but it does produce some good result on most of them. Take the equity line of the system applied to Cardano for example, or to Algo, or to Avax, to other minor cryptos, and to BNB.
Generally speaking, in most of the cases we get a rising equity – this is the one on Bitcoin. And the interesting thing about this system, this approach, is that it allows us to open positions only when the market is bullish and to avoid trading when retracements occur.
But let's now see which cryptocurrencies are performing best, so the ones that have moved the most over the last 7 days. As you can see, this was quite a complicated week for cryptocurrencies. If we take Bitcoin as an example, a few days ago, the very same day the price of Bitcoin fell from $52,000 to $42,000, and now its value is about $46,000.
So that was a pretty violent market crash, but not all the cryptocurrencies did suffer from it as much as Bitcoin or other small altcoins. For example, among the cryptocurrencies that have been performing very well over the last period, there is Solana, which is a really interesting project. Let's take a look at its performance. In the last 7 days, Solana gained 25%. In the last 30 days, it gained 339%, and in the last 90 days, it made a 400% gain.
As you can see, cryptocurrencies can be characterized by very high volatility and since trading systems feed on volatility, it is definitely possible to trade these markets with a systematic approach.
By the way, Solana is not the only crypto that is currently being so volatile. Another example is FTT, the token created by the FTX exchange. This token has risen a lot over the last period. Here you can see the equity line of the system, which is still positive even if it is now in a slight drawdown.
Then there’s Luna, a cryptocurrency in which we decided to invest some time ago, and in this case, we invested in it in a medium to long term perspective. If we look at the 30-day performance of this market, it is still around 100%, while the 90-day performance is +546%. Moreover, as you can see, at the moment Luna is the only crypto that has the right entry setup for this unrefined trading system to work. In fact, Luna’s price is very close to its all-time high.
If we take a look at returns in the slightly longer term, that is in the last 30 days, we see that Solana is in first place, followed by Avax, which made a remarkable performance even if it is now in a retracement phase, and Algo, another very interesting crypto that, as you can see, has recently gone up a lot, and the trading system has entered into the market and made a good gain.
The capitalization of altcoins is currently greater and greater. The chart of the Bitcoin Dominance, in fact, shows that the capitalization of Bitcoin within the crypto world is getting close to its historical lowest values. If in the past the cryptocurrency market was dominated by Bitcoin, now the altcoins we've just mentioned are gaining more and more weight. Clearly, this change opens an absolute world of opportunities for systematic trading.
But let's go back to the traditional markets and take a look at the rollovers of the next week. First things first, don’t forget the triple witching day, that is, the day when the futures on the US and European equity indexes expire. You can already roll over the US futures, while for the European ones, you’ll gonna have to wait until next Friday.
I also remind you that energy futures are getting closer to expiration, so toward the end of the next week you'll be able to roll over on Crude Oil, while for rolling over on the other energy futures you’ll have to wait until the week after the next.
Guys, if you want to learn more about how the trading method we use and teach at Unger Academy, which was created by the 4-time world trading champion Andrea Unger, I invite you to watch our free webinar. You can find the link in the description of this video.
And if you haven't done it yet, please I also invite you to subscribe to our channel.
Goodbye everyone and see you next time!
Need More Help? Book Your FREE Strategy Session With Our Team Today!
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.