Starting from my old study on the analysis of the Bitcoin Future
(this is the link: https://medium.com/@Algorithmic_Trading/bitcoin-study-and-data-analysis-997239439348), I came to the conclusion that this underlying has a purely Breakout nature and therefore I decided to develop a strategy that would go along with this nature.
I wanted to develop this strategy on a 60 minute timeframe because I wanted it to be based on intraday Breakout movements.
ENGINE
How do you find these movements? I based on the Close of the day before to which I added the TrueRange of the candle of the day before.
So I will set a long entry Stop order on the Close + Truerange.
ACCESSORIES
Since Bitcoin is a very volatile instrument, I decided to add a contract control based on the volatility of the underlying.
To do this, I created a Function that would allow me to check the amount that I am willing to see fluctuating during the day, dividing it by AvgTruerange of a certain period and multiplying it by the Point Value of the underlying.
This function therefore allowed me to buy a well-defined number of contracts based on the volatility of the instrument.
Example: if the average btc moves by $ 2000 per day I will buy 1 btc, if the following day it moves by $ 4000 then I will buy 0.5 btc
EXITS
The system is almost finished, lastly the outputs are missing. First, I set a stop loss of $ 1,800 per position and a time exit which in this case comes out after the 18:00 bar on the market.
The system is ready to go to work! Below I am attaching the performance of the system with a 4-year history. I remind you that you can find all my systems for sale on my Shop at the address below! To the next article 👋
My Shop System: https://tradingsystems.sellix.io/
My Site: https://stableparameters.com/
Contact me: https://t.me/AlgorTrader
LinkedIn https://www.linkedin.com/in/armando-lo-conte-83a4a8129/