How to plan a simple algorithmic trading strategy. A step-by-step guide

As we discussed in our previous articles, developing an algorithmic trading strategy is a dynamic process. Our goal at Coinrule is to make this as simple as possible for you!

• First, we have to analyze the market conditions and the features of the assets we want to trade
• then we have to set the strategy we believe can represent the best fit for the trading background
• we have to backtest the strategy to evaluate how it would have performed in the past in different market scenarios
• make final adjustments based on backtesting results
• finally, run your strategy

Before going live with our trading strategy, we want to present a practical example of how to plan and run a trading strategy. Keeping these steps in mind will help you set up your trading plan with Coinrule.

Examine the market

Let’s start with the idea that inspired our trading strategy. These are some distinctive aspects of crypto trading to be considered.

• PUMP & DUMP: coordinated buy pressure on a specific cryptocurrency in a very short period of time that is followed by an immediate sell-off soon after
• FOMO, fear of missing out…