Multi Time Frame Buy the Dips (by Coinrule) — Strategy by Coinrule
By Coinrule
Performance Metrics
- Author: Coinrule
- Symbol: COINBASE:LINKUSD
- Timeframe: 30 minutes
- Net P&L: +213.81 USD (+21.38%)
- Win Rate: 52.5%
- Profit Factor: 1.238
- Max Drawdown: 131.32 USD (12.71%)
- Total Trades: 141
- Sharpe Ratio: 0.438
Description
Nov 9, 2020Buying the dips is a relatively easy automated trading strategy that can return impressive profits, especially during uptrend times. Not all price drops are for buying, though. This trading system is based on a multi time frame buy-the-dip approach to optimize each trade.The strategy catches sudden price drops on a 1-hr time frame when the price increases significantly in the last 12 hours. During steep uptrends, profit-taking price actions result in flash crashes that provide great opportunity to enter at convenient prices.Buy ConditionThe setup of the script is optimized on a 30 min time frame. You can adjust the parameters to fit different time frames.The system gets a buy signal when- the price drops 1% from the two previous candles (1 hour time frame = two 30-min candles)- the price is up 3% from the last 12 hours (twenty-four 30-min candles equal the desired time frame)Sell ConditionEach trade comes with a stop loss of 3% and a take profit of 4%.This setup has been optimized, running over 150 backtests on more than 20 different crypto trading pairs.The strategy assumes each order to trade 30% of the available capital. A trading fee of 0.1% is taken into account. The fee is aligned to the base fee applied on Binance, which is the largest cryptocurrency exchange.Nov 24, 2020Release NotesBuying the dips is a relatively easy automated trading strategy that can return impressive profits, especially during uptrend times. Not all price drops are for buying, though. This trading system is based on a multi time frame buy-the-dip approach to optimize each trade.The strategy catches sudden price drops on a 1-hr time frame when the price increases significantly in the last 6 hours. During steep uptrends, profit-taking price actions result in flash crashes that provide a great opportunity to enter at convenient prices.Buy ConditionThe setup of the script is optimized on a 30 min time frame. You can adjust the parameters to fit different time frames.The system gets a buy signal when- the price drops 1% from the two previous candles (1 hour time frame = two 30-min candles)- the price is up 3% from the last 6 hours (twelve 30-min candles equal the desired time frame)Sell ConditionEach trade comes with a stop loss of 3% and a take profit of 4%.This setup has been optimized, running over 150 backtests on more than 20 different crypto trading pairs.The strategy assumes each order to trade 30% of the available capital. A trading fee of 0.1% is taken into account. The fee is aligned to the base fee applied on Binance, which is the largest cryptocurrency exchange.