Backtested Trading Strategy: Profit on DOGE (+158%), WIF (+156%), SOL(+182%) & ETH (+113%)5 min read
These backtesting case studies are meant to show how to get confidence in your trading strategy. We posted a strategy last week with incredible gains on Bitcoin and Altcoins. This week we’ll be inspecting how expanding the backtesting period can help you backtest correctly and have confidence in your trading strategy.
The First Backtest of this Bitcoin and Altcoins Trading Strategy – 3 Month Sample
If consistent execution of a trading strategy is important, the strategy should be simple. Complicated strategies are best executed as crypto bots, for precision and 24/7 presence. What we propose can be executed by anyone.
The EMA and ATR 30 min Trading Strategy Rules – Past 3 months
On the 30 Minute Timeframe:
– Open position: EMA(20) is above EMA(50) AND When ATR(14) is up by 10% in last week
– Close position: EMA(20) is below EMA(50) AND When ATR(14) is down by 5% in last hour
No Stop Loss or Take Profit.
The strategy is quite reactive to recent price movements for closing.
We tested this strategy on 3 months of historical data on multiple assets.
The EMA and ATR 30 min Trading Strategy Backtesting Results for Ethereum, Bitcoin, Doge & more
The backtesting results on Bitcoin and multiple alts showed excellent potential:
WIF: 159.08% gain while holding in the same period would have resulted in a 92.02% gain
ADA: 141.34% gain while holding in the same period would have resulted in a 87.33% gain
SOL: 117.16% gain while holding in the same period would have resulted in a 57.37% gain
AVAX: 95.59% gain while holding in the same period would have resulted in a 73.88% gain
LINK: 88.24% gain while holding in the same period would have resulted in a 48.59% gain
ETH: 64.66% gain while holding in the same period would have resulted in a 31.84% gain
BTC: 64.55% gain while holding in the same period would have resulted in a 50.67% gain
XRP: 15.66% gain while holding in the same period would have resulted in a 12.04% gain
**DOGE: 218.24% gain while holding in the same period would have resulted in a 246.39% gain
**BNB: 25.82% gain while holding in the same period would have resulted in a 30.10% gain
In many cases the profit is double what holding would have brought you.
Automating this as a crypto bot is very easy as well.
The past 3 months include a trending and ranging period, but to really have confidence in the strategy we had to expand on it.
The Results For The EMA and ATR 30 min Trading Strategy on 6 months
If you open the charts for the past 6 months you could find pretty much all types of market conditions. This is why we were really curious if our simple indicator strategy would hold up.
The ATR and EMA 30 min Trading Strategy Backtesting Results for Ethereum, Bitcoin, Doge & more over 6 months
The results for Ethereum are impressive, especially as many are frustrated with holding. Doge, SOL, WIF and others are also experiencing a great performance with this trading strategy:
DOGE: 158.16% gain while holding in the same period would have resulted in a 143.79% gain
WIF: 156.17% gain while holding in the same period would have resulted in a 4.33% gain
SOL: 122.18% gain while holding in the same period would have resulted in a 53.23% gain
ETH: 113.53% gain while holding in the same period would have resulted in a 15.94% gain
LINK: 100.95% gain while holding in the same period would have resulted in a 11.90% gain
ADA: 101.11% gain while holding in the same period would have resulted in a 40.12% gain
BTC: 57.91% gain while holding in the same period would have resulted in a 45.84% gain
BNB: 54.80% gain while holding in the same period would have resulted in a 10.73% gain
XRP: 35.01% gain while holding in the same period would have resulted in a 22.53% gain
Losses: AVAX
Going the extra step to expand the timeframe on which this strategy is backtested would make a world of difference for your confidence in the markets. In come cases like with Ethereum the difference is tenfold between trading this strategy and holding.
It will be very interesting to track the results that this strategy posts as the bullrun progresses.
By backtesting you also know what drawdown you can expect. Not to mention that you can expect many loses, while the wins will be significant.
There is plenty of more data features in every backtest on the platform including expected streaks, best/worst trading days/times, drawdown, splits by longs and shorts & more.
Of course you can fully automate this strategy too in minutes and run it on Binance or OKX through cleo.finance.
This is why everyone should backtest. With a dew clicks you know exactly what you’re devoting your discipline and time in the markets.
Try creating your version of the strategy or polish another idea on cleo.finance. If you want to backtest a strategy that is not based on indicators and need to simulate your trading by replaying the market check out our Manual Backtester.
