Q10. Bitcoin Strategy BTC USDOct 26, 2021
We have added a new strategy for Bitcoin in our Prometheus course. We thus now have a total of 10 Strategies for our Prometheus course. For people who have already bought the Prometheus course, this addition will be free of charge and should be in the strategy section.
To give a bit of summary of the strategy, This is strictly for Bitcoin. It’s been backtested since end of 2011(almost 10 years) and has got pretty stellar returns with 730000% overall returns. But be careful with these high returns as bitcoin did go up heavily during this period(Screenshots above). Just rough points to let you know the details
The strategy has been made to capitalize on the high volatile nature of bitcoin. It’s more of a momentum trading strategy.
We are aggressively exiting the strategy as compared to our other strategies due to the influence of retail traders in the bitcoin trading community and the volatility that it comes with it.
The drawdowns are slightly higher than our typical strategies so be careful with leveraging this.
Dont be overoptimistic with the net profit, bitcoin has been pretty generous and explosive to the upside.
Henceforth, our general advise is to keep the portfolio allocation for this strategy or any bitcoin strategy to a maximum or less than 5%.
The percentage profitable is 43% and our ratio of average win to loss(reward to risk ) is 4.9 with profit factor of 3.8. as seen below in the screenshots.
The largest winning trade is 506% and largest losing trade is 12.9%
Detailed explanation can be found in the video in the course. The results for the strategy is also seen above.