JW V5

Slow, mid-frequency, risk managed first strategy.

Quick Summary

  • Average amount of monthly trades 0-4
  • For who? Anyone who is more involved with daily/weekly price movements.
  • Technical Using mainly lagging indicators like EMA5, SMA10, SMA21, SMA50, SMA100, SMA200, SMA400, SMA600, RSI, Stochastics, dynamic stop loss, -5% hard exit, -7% ATH hard exit, hourly Heikin Ashi candles, 25 days warmup, and some custom developed indicators.
  • Trading By default limit orders unless market moves away 0.3% or not filled within an hour in which we use market orders instead. Panic sells always uses market orders. Binance trades always uses market orders.
  • Strengths Low to mid frequency trades, takes profits earlier than V4, re-enters quickly if price keeps moving up, low market exposure. Works well when we have a position in high volatility situations, protects portfolio after bull runs. Generally easier to agree with because of lower accepted drawdown quicker profit-taking. Exits to a safe haven (USD, EUR, or stable coins) to protect your portfolio. Due to higher frequency and quicker profit take, results will show earlier than V4.
  • Weaknesses Due to higher frequency in trades and quick re-enters, fees are impacting profits. Is not able to catch bottoms due to its use of lagging indicators but might catch tops on decent volatility. May be catched in a price crash that happens within minutes as it's using hourly candles. A supporting strategy might solve this problem due in Q1 2019.
  • Portfolio Risk profile May be catched in trades that do not move and chipping away our portfolio slowly due to fees. May be catched in a price crash that happens within minutes as it's using hourly candles. A supporting strategy might solve this problem due in Q1 2019. Does not trade in mid-bear market trends.
  • Recommendation This is a strategy easiest to begin with as we will see results sooner than V4. However due to the frequency of trades the net performance will be lower than V4. It's easier to handle when you check prices regularly as negative pending profits happen less often than V4. We recommend to start out with V5.
  • Backtest Notes The net performance numbers include 0.3% fees and 0.05% slippage. These are the fees from CoinBase Pro market orders. Limit orders are free. Some trades may be filled with a limit order which would give us a slightly better price. Binance fees are 0.075% when holding BNB and may result in better performance compared to CoinBase Pro. However it is good practice to backtest with the highest fee exchange.

Performance Summary

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