Counter Trend Split
5. Counter-trend split buy strategy
The counter-trend split buy strategy works well for altcoins other than Bitcoin.
In particular, coins with long lower tails work well. Dogecoin as an example.
Oddly enough, coins such as Ripple work as well.
It buys whenever the interval specified in the lower tail falls.
And unconditionally liquidate the next 8 hours
By adjusting variables such as the number of divisions or intervals, mdd -10% to 20% can be operated in or out.
Reverse injection... This strategy... can be a great strategy if you know how to use it.
1. Excluding Bitcoin, Ethereum and stablecoins.
2. Based on the coin market cap, the top 20 coins that have been filtered once are selected.
3. Backtest each coin to Binance usdt perpetual contract.
- I set the division to 50 and the limit (%) to 100.
- If you divide by 50, there is a low probability that all the funds you have will be invested.
- So, even if the limit (%) is 100, the amount of money invested at one time is 2% of the total proportion.
- You can use 2-3 leverage here to set the MDD you can afford as a standard.
- The time frame was set to 8 hours, but I think this setting is meaningful.
- The product being traded is a gift, and there is a gift called a funding fee every 8 hours.
- The funding fee is a mechanism to control the price gap (NAV%) between spot and futures.
- I don't know a clear correlation yet, but I can infer that there is some kind of relationship.
- Binance Futures Exchange will charge a 0.04% fee for trading at market price.
- In consideration of slippage, the transaction cost is set at 0.15%.
Limit (%) : 100
I set it to the same degree and applied it to the universe selected above.
As a result, most of the mdd is taking a risk of -10 to 25% and
Most of the coins underperform the BM (benchmark) in the rate of return.
You can draw a picture that faces upward stably