Introducing the ETHBTC RSI Ratio Set

The ETH/BTC RSI Ratio Set is now live on TokenSets

Anthony Sassano
Dec 5, 2019 · 4 min read

Today, we’re excited to announce the launch of the ETH/BTC RSI Ratio Trading Set (ETHBTCRSI) on TokenSets — the first Open Finance product that automatically rebalances between ETH and WBTC based on the Relative Strength Index (RSI) technical indicator.

Key Points

  • ETHBTCRSI implements a crossover strategy on the ETH/BTC relative strength index
  • More Ratio Trading Sets will be released in the future
  • ETHBTCRSI is currently in WBTC. Automatically trade the ETH/BTC ratio by purchasing the Set on TokenSets today!

Why Trade the ETH to BTC Ratio?

Trading the ratio allows traders to stay 100% exposed to the potential upside in crypto markets while taking advantage of changes in ETH and BTC price whenever prices are not as correlated with each other.

Historically, the ETH/BTC ratio has oscillated frequently which traders have taken advantage to capture more return (whether it’s to “stack sats” or “gather gwei”).

How the ETH/BTC RSI Ratio Trading Set Works

At a high level, if the ETH/BTC ratio falls below support, ETHBTCRSI rebalances 100% ETH into BTC expecting BTC will continue outperforming ETH. Conversely, if the ETH/BTC ratio rises above resistance, the Set rebalances into ETH expecting ETH will continue to break out against BTC. View the chart below:

Rebalance criteria for the ETHBTCRSI Set

How the ETHBTCRSI Set Performs

This chart below compares the hypothetical performance of holding the ETHBTCRSI Set against holding 100% ETH or BTC over the last 3.5 years, assuming a slippage rate of 1% during each rebalance. The model shows the Set would have outperformed over the given historical time period and been subject to the volatility of BTC and ETH prices.

The chart below illustrates the ETH that would have been accumulated using the ETHBTCRSI Set vs a buy and hold strategy following the same assumptions above.

It’s important to keep in mind the the charts above are based on a number of assumptions and are only meant for illustrative purposes. As always, past performance is not indicative of future performance.

These charts use generated ETH hourly data sourced from Gemini. In production, the ETHBTCRSI Set rebalances based on MakerDAO’s ETH price feed, which may output different results. If you’d like to play around with the data yourself (and tweak the parameters), feel free to fork the spreadsheet here.

Conclusion

If you have an idea for a strategy that you’d like to see on TokenSets, please don’t hesitate to reach out to us.

Developers interested in working with us can also reach out to our friendly team by emailing us at hello@setprotocol.com or by joining our Telegram chat.

Learn more about Set and join our community

Set Labs

Grow your crypto using automated asset management strategies

Anthony Sassano

Written by

Marketing at https://www.setprotocol.com/ | Co-founder of https://ethhub.io and Co-host of the Into the Ether podcast

Set Labs

Set Labs

Grow your crypto using automated asset management strategies

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