BTC vs US500: Normalized Trend Divergence Backtest Strategy by mk77777
By mk77777
Performance Metrics
- Author: mk77777
- Symbol: CRYPTO:BTCUSD
- Timeframe: 1 day
- Net P&L: +90,349.11 USD (+903.49%)
- Win Rate: 34.0%
- Profit Factor: 12.207
- Max Drawdown: 2,161.42 USD (5.65%)
- Total Trades: 50
Description
Overview:This strategy script provides a framework for testing the hypothesis that Bitcoin’s price movements are heavily influenced by global macro trends. It utilizes a unique normalization technique to overlay the S&P 500's momentum onto the Bitcoin chart.This strategy is tailored for trading Bitcoin on higher timeframes to capture significant, macro-driven swings, rather than intraday noise.Strategy Logic:The core logic of the strategy is based on the relationship between the BTC price and a Normalized Moving Average of the S&P 500.Target Asset: BTCUSDRecommended Timeframe: 1D for the most effective backtest results.Long Entry: Triggered when BTC price crosses ABOVE the Normalized US500 Moving Average.Short/Exit Entry: Triggered when BTC price crosses BELOW the Normalized US500 Moving Average.