Strategies

Strategies in detail with their characteristics, risk profile, backtests, strength and weaknesses. We focus on a limited set of strategies to cover differrent risk- and profit profiles. Quality over quantity.

JW V5

Characteristics:
  • Risk managed first strategy
  • Low-frequency 4.5 trades per month
  • Does not trade in mid-bear markets
  • Using lagging indicators, is not able to catch tops and bottoms
  • ~19% market exposure
  • ~7% drawdown (-14.4% without lower time-frame protection)
  • Performance of 171% 2015-2016
    (2015-04-23 - 2016-08-24)
  • Performance of 212% before bull run
    (2016-09-01 - 2017-11-01)
  • Performance 116% after bull run
    (2017-11-01 - 2018-12-25)
  • For people who check prices regularly
  • View detailed performance and backtest results

V5 is mentally easier for the ones who are semi-regularly involved with Bitcoin prices. The trading window is mostly the same as V4 but trades more frequently within this window. It will sell quicker and re-enter quicker securing profits and minimizing drawdown.

The per trade drawdown of -14.4% is less likely now to happen since introduction of the Supporting Strategy that monitors lower time-frames. This would have hit our hard -5% stop-loss.

The weakness of this strategy is that it may prematurely sell a position to prevent the risk of high(er) drawdown and the fees associated with positions. It's recommended to start with this strategy.

JW V4

Characteristics:
  • Risk managed first strategy
  • Low-frequency 1.8 trades per month
  • Does not trade in mid-bear markets
  • Using lagging indicators, is not able to catch tops and bottoms
  • ~33% market exposure
  • ~7% drawdown
  • Performance of 182% 2015-2016
    ( 2015-04-23 - 2016-08-25)
  • Performance of 311% before bull run
    (2016-09-01 - 2017-11-01)
  • Performance 193% after bull run
    (2017-11-01 - 2018-12-25)
  • For people who do not check prices but rely on our monthly performance updates
  • View detailed performance and backtest results

V4 is made to minimize trades and is slower to respond to market changes. However due to its low frequency of trades, it's performing overall better than V5 because of lower fees. It accepts a higher drawdown compared to V4 to give trades a chance to turn around.

The weakness of this strategy is that it's slow to show results (6-12 months) and potential pending profits may end up in a loss. This is mentally a very hard strategy and only recommended for people who are not involved in price movements on a daily, weekly, or monthly basis.