Strategy of the Week — RSI with Slow and Fast MA Crossing Strategy
Welcome to Coinrule’s strategy of the week video. This week’s strategy is a bit different in the sense that it won’t use TradingView signals, you’ll still be able to back-test the strategy on Coinrule using TradingView, but you won’t actually need to connect Coinrule to TradingView to run it. One advantage of this is that you’ll be able to utilize the “any coin” option, meaning that you can run the strategy across all coins in the market, and not just on one specific coin. The strategy this week is really very simple. Similar to last week’s strategy, it utilizes two technical indicators, the RSI or relative strength index and moving average crossings to enter and exit trades.
First, we will go over the entry conditions of the strategy. To enter trades, this strategy will require two RSI conditions to be met. We require that the RSI has increased by five implying that the relative strength of the coin is increasing. And we also require that the RSI is lower than 70 meaning that it hasn’t reached overbought levels as shown in this diagram. We also have one moving average condition that needs to be met, we require the MA9 the fast period moving average crosses above MA50 the slow period moving average. The rationale behind this is that traditionally you buy when the fast-moving average crosses above the slow-moving average.
Now, I will discuss the exit condition of the strategy. There’s just one and it’s just the inverse of our last entry condition. So to exit, we require the MA50 crosses above MA9 as you can see here. The rationale is just the opposite of before. Traditionally, we sell on the slow-moving average crosses above the fast-moving average, the opposite of buying.
Lastly, I’ll show you how to run the strategy on Coinrule and also back-test it on TradingView.
Now, I’m going to show you how to back-test the strategy on TradingView. First, find the strategy on our TradingView page, a lot of direct links to this and the description of the video. So you don’t need to find manually scroll down and you’ll see some descriptions of the entry and exit conditions. You’ll also get some information on some coins and pairings that works well on as well as timeframes. So first, scroll down and click Add to favourite indicators. And then come to the chart you wish to test on. The indicators will now be in your favourites
You can use this with any coin operator. So essentially, you can allow the strategy to run across any coin in the market. Whereas this data here is just for Ethereum. But this is useful to find timeframes that it works well on. So if you’re happy with the performance, you can see here that the rule at $4,000 with $10,000 starting capital and a total of 19 trades. This back-testing data is listed here from the start of January 2020. The strategy also assumes that each order uses 30% of the available coins to make the results more realistic. And to simulate you that you only ran the strategy on 30% of your holdings. There’s also a trading fee of 0.1% applied, which is aligned to the base fee on Binance. So if you’re happy with this, come to Coinrule and just design the strategy.
Again, I mentioned I’m going to use any coin operator so I’m going to have the strategy run across any coin in the market. So feel free to just pause this here and take a photo of this and just kind of copy it. Or again the conditions are listed here. So you can just either or whatever works for you. Okay, so if any coin has RSI increased by five within four hours, this is because we’re using the 4-hour time frame here and it works well. So I want to run the strategy on the 4-hour time frame. And that coin has RSI lower than 70 and a timeframe of four hours and that coin has MA9 crossing above MA50 in a timeframe of four hours. So these are the entry conditions and I want to buy 1000 US dollars of that coin with my USD T wallet as a limit order. And then, if that coin has MA50 crossing above MA9 and the timeframe of four hours, this is our exit condition that I want to sell 100% of the amount bought that coin to my USD T wallet as a limit order. I want this to start immediately and execute 100 times in total. I’m gonna name the strategy RSI the slow and fast me crossing strategy launch, launch and your strategy is now live.
I hope you enjoyed the strategy of the week video. Please let us know if you’ve got any questions. We’re really excited to see what you create. Thank you.
Learn more about the strategies you can run automatically on Coinrule.
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I am not an analyst or investment advisor. Everything that I provide here site is purely for guidance, informational and educational purposes. All information contained in my post should be independently verified and confirmed. I can’t be found accountable for any loss or damage whatsoever caused in reliance upon such information. Please be aware of the risks involved with trading cryptocurrencies.
