Momentum Long + Short Strategy (BTC 3H) by noobztrader101
By noobztrader101
Performance Metrics
- Author: noobztrader101
- Symbol: BINANCE:BTCUSDT.P
- Timeframe: 3 hours
- Net P&L: +70,089.89 USDT (+5,970.73%)
- Win Rate: 49.3%
- Profit Factor: 2.529
- Max Drawdown: 4,898.88 USDT (23.56%)
- Total Trades: 134
- Sharpe Ratio: 0.219
Description
Momentum Long + Short Strategy (BTC 3H)🔍 How It Works, Step by StepDetect the Trend (📈/📉)Calculate two moving averages (100-period and 500-period), either EMA or SMA.For longs, we require MA100 > MA500 (uptrend).For shorts, we block entries if MA100 exceeds MA500 by more than a set percentage (to avoid fading a powerful uptrend).Apply Momentum Filters (⚡️)RSI Filter: Measures recent strength—only allow longs when RSI crosses above its smoothed average, and shorts when RSI dips below the oversold threshold.ADX Filter: Gauges trend strength—ensures we only enter when a meaningful trend exists (optional).ATR Filter: Confirms volatility—avoids choppy, low-volatility conditions by requiring ATR to exceed its smoothed value (optional).Confirm Entry Conditions (✅)Long Entry:Price is above both MAsTrend alignment & optional filters pass ✅Short Entry:Price is below both MAs and below the lower Bollinger BandRSI is sufficiently oversoldTrend-blocker & ATR filter pass ✅Position Sizing & Risk (💰)Each trade uses 100 % of account equity by default.One pyramid addition allowed, so you can scale in if the move continues.Commission and slippage assumptions built in for realistic backtests.Stops & Exits (🛑)Long Stop-Loss: e.g. 3 % below entry.Long Auto-Exit: If price falls back under the 500-period MA.Short Stop-Loss: e.g. 3 % above entry.Short Take-Profit: e.g. 4 % below entry.🎨 Why It’s Powerful & CustomizableModular Filters: Turn on/off RSI, ADX, ATR filters to suit different market regimes.Adjustable Thresholds: Fine-tune stop-loss %, take-profit %, RSI lengths, MA gaps and more.Multi-Timeframe Potential: Although coded for 3 h BTC, you can adapt it to stocks, forex or other cryptos—just recalibrate!Backtest Fine-Tuned: Default settings were optimized via backtesting on historical BTC data—but they’re not guarantees of future performance.⚠️ Warning & DisclaimerThis strategy is for educational purposes only and designed for a toy fund. Crypto markets are highly volatile—you can lose 100 % of your capital. It is not a predictive “holy grail” but a rules-based framework using past data. The parameters have been fine-tuned on historical data and are not valid for future trades without fresh calibration. Always practice with paper-trading first, use proper risk management, and do your own research before risking real money. 🚨🔒Good luck exploring and experimenting! 🚀📊