This Bitcoin trading strategy made 494.47% in the last 2 years
A beginner friendly Bitcoin trading strategy with insane returns
Dear valued reader,
Today, I want to share with you a simple and profitable strategy that is perfect for beginners looking to get into crypto trading. In the last two years, starting with a capital of $100,000, this strategy has earned $494,467, which is more than a 200% return per year.
The best part about this strategy is that it's surprisingly easy and straightforward, and even a beginner can execute it with ease. There's even a way to automate it, which means you can sit back and let the strategy do the work for you.
How this strategy works
The strategy is based on the 1H timeframe, with trades coming every 1 to 2 days. This means it's perfect for someone who doesn't want to stay glued to the charts all day. All you need to do is set some alerts and you're done.
The risk-reward ratio for this strategy is 1:1.8, and the amount risked on each trade is 3%. You can adjust this amount according to your risk appetite, but I recommend staying below 5%.
The strategy is based on the 1H EMA and only works on the Bybit BTC/USDT chart. If you don't have a Bybit account, you can create one using my referral link to support my work : https://www.bybit.com/invite?ref=QDENM2
Thank you so much if you used my link.
Now, you may be wondering why this strategy only works on Bybit and not on other exchanges. The truth is, as traders, we don't care why it works, but instead on how much it works and for how long it has worked.
To answer your question, it works because no one knows about this strategy other than you and me (unless this newsletter goes viral). So, no one is on the other side to counter us on this strategy.
I have backtested this strategy since January 2021 over a sample size of almost 300 trades, which is more than enough data. For reference, a strategy backtested 100 times is considered excellent.
If you are interested in the pinescript code for the backtesting drop a comment and I’ll release it.
Execution
To use this strategy, switch to the 1H EMA and add the ATR indicator to the chart (make sure the value of ATR is 14). There are two conditions to execute this strategy. Both these conditions have to be fulfilled to take a long or a short.
Every time the price moves above the 20 EMA on the 1H chart of BTC/USDT on Bybit triggers the first condition. If the next candle closed above the previous candle's high, you long. SL will be at the current price - (2 * ATR indicator), and TP will be at the current price + 1.8 * (current price - SL price ). An RR of 1:1.8, as I had mentioned before.
As for shorting, every time the price moves below the 20 EMA, and the following candle closes below the previous candle low, you short it with SL at the current price + (2 * the value of ATR). And TP at the current price - 1.8 * (SL price - current price).
The best part about this strategy is that it's completely systematic, following the CEST system (Condition entry Stop Loss and Take profit). It has clear conditions, and the entry is right where the following candle closes. Stop loss will always be twice of whatever the value of the ATR indicator is, and the target is always 1.8 times the stop-loss size.
It's crystal clear, repeatable, systematic, and most importantly, backtested and proven to be profitable over time. This is exactly why this strategy can be automated. I am working on a bot for this strategy to automate it for myself. If you're interested in the bot, just drop a comment, and I'll release it.
Thank you for taking the time to read this newsletter. I hope you find this strategy helpful in your crypto trading.
If you have any doubts feel free to drop a comment.
I have also started a free discord community for people interested in crypto trading where you share ideas with other like minded people in the community.
Discord link : https://discord.gg/EJDxcRbmAg
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © Cryptohike
//@version=5
strategy("My strategy", overlay=true, initial_capital = 25000)
//afterStartDate = (time >= timestamp(syminfo.timezone,
// 2022, 3, 20, 0, 0))
float initialCapital = strategy.equity
ema20 = ta.ema(close,20)
float atr = ta.atr(14)*2 //declaring atr
var float storeatr = 0 //variable to store value of atr at the time of entering trade
var float entryprice = 0
longCondition = ta.crossover(close[1], ema20) and close[0]>high[1]
shortCondition = ta.crossunder(close[1],ema20) and close[0]<low[1]
if (longCondition) //and afterStartDate
slpercent = atr/close * 100
x = 0.03 * 100 * initialCapital/slpercent
possize = x/close
strategy.entry("long", strategy.long, qty = possize)
entryprice := close
storeatr := atr
if (shortCondition) //and afterStartDate
slpercent = atr/close * 100
x = 0.03 * 100 * initialCapital/slpercent
possize = x/close
strategy.entry("short",strategy.short, qty = possize)
entryprice := close
storeatr := atr
strategy.exit("exit","long", stop = entryprice-storeatr, limit = entryprice+storeatr*1.8)
strategy.exit("exit2","short", stop = entryprice+storeatr, limit = entryprice-storeatr*1.8)
//You can change the code to modify the initial capital and other parameter like risk reward ratio etc