Journaling MA strategies

MA Cross Entry/Exit

So I created this custom strategy using pine language. You can configure two things: a cross MA to enter, and a cross MA to exit (if the the first cross hasn’t uncrossed…)

The main goal is to identify first on 4h timeframe which combination can give the best returns on 18 months (Jan 1 2020 to now). Then we will try to aim for the best exit strategy (second MA cross exit strategy). Then we will check the strategy on other major alt coins (ETH, LINK…).

We will also have to try it on a bear market to check the performance.

The chart taken is BTCUSDT from Binance on TradingView.

Slow MA 50

Best results for fast MA (net profit is indicated in %, strategy 1000$ per position/strategy 100% equity per position):

  • 1: 210%/352%
  • 26: 208%/318,22%
  • 30: 234%/277,5%

Slow MA 100

Best results for fast MA:

  • 28: 205%/303%
  • 97: 209%/379%

Slow MA 200

Best results for fast MA:

  • 28: 309%
  • 43: 310%
  • 78 or 156: 326%
  • 199: 363% (damn)

Slow MA 400

Best results for fast MA:

  • 8: 384%

Focusing on Slow MA 200

Fast MA 78

81% rentability on 11 trades.

Finishing the story

Okay I have to admit this story is a draft since like 3 months. But hey I tried to finish the work and this is what I found:

  • SMAs cross allows to enter much more positions than EMAs cross (around twice more)
  • Good SMAs cross have a 60% win rate when EMAs cross have 70% win rate (remember there is a lot less crosses)
  • On ETHUSDT with a slow MA of 200, the best fast MAs are 12 and 150. The best is to combine them in order to have more confirmations.
  • Those cross MAs combinations offer around 550% on a year with 15 positions entered !

Now next time let’s create a strategy and set an alarm to follow it and make great wins ! I also have to check if it is fit for bear/crab market (ex: 2019, 2018…)

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