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Title: Trading strategy for ongoing downtrends? Post by: Serpens66 on February 14, 2017, 06:29:57 PM Hi,
I recently started to use some basic indicators like EMA to make my trading decisions. Since I know how to make a bot, I already backtested some basic strategies. I noticed that just with EMA cross, you could easily make 50% profit from December 2016 to now. But of course the overall trend was upward or at least sideways in this timeframe. When I test this or any other basic strategy I saw at timeframe eg. January 2014 to April 2014 (to keep the timeframe small), it always ends up in a big loss. The overall trend was obviously downward in 2014. All the bots I saw you can purchase at bitcointalk or cryptotrader have the same weakness. They make profits while the price is going up anyway. But you are warned by developers of the bot, to not use it in downtrends, cause it will result in loss. What I would like to know: Do you know any bot at cryptotrader or elsewhere, or a indicator strategy that can prove by backtest, that it would generate profits in 2014s downtrend? Title: Re: Trading strategy for ongoing downtrends? Post by: BillyBobZorton on February 14, 2017, 06:49:56 PM Hi, I recently started to use some basic indicators like EMA to make my trading decisions. Since I know how to make a bot, I already backtested some basic strategies. I noticed that just with EMA cross, you could easily make 50% profit from December 2016 to now. But of course the overall trend was upward or at least sideways in this timeframe. When I test this or any other basic strategy I saw at timeframe eg. January 2014 to April 2014 (to keep the timeframe small), it always ends up in a big loss. The overall trend was obviously downward in 2014. All the bots I saw you can purchase at bitcointalk or cryptotrader have the same weakness. They make profits while the price is going up anyway. But you are warned by developers of the bot, to not use it in downtrends, cause it will result in loss. What I would like to know: Do you know any bot at cryptotrader or elsewhere, or a indicator strategy that can prove by backtest, that it would generate profits in 2014s downtrend? Are you talking about bitcoin? because in this case we are obviously in an uptrend. $1000 is the new psychological barrier/floor where everyone is making money at by buying every single dip that goes below $1000, so keep buying the sub $1000 dips. I would not bother with bots. If bots worked then everyone would be rich. Im yet to see a bot that gives you consistent profits. Title: Re: Trading strategy for ongoing downtrends? Post by: Idrisu on February 17, 2017, 06:27:03 AM Hi, I recently started to use some basic indicators like EMA to make my trading decisions. Since I know how to make a bot, I already backtested some basic strategies. I noticed that just with EMA cross, you could easily make 50% profit from December 2016 to now. But of course the overall trend was upward or at least sideways in this timeframe. When I test this or any other basic strategy I saw at timeframe eg. January 2014 to April 2014 (to keep the timeframe small), it always ends up in a big loss. The overall trend was obviously downward in 2014. All the bots I saw you can purchase at bitcointalk or cryptotrader have the same weakness. They make profits while the price is going up anyway. But you are warned by developers of the bot, to not use it in downtrends, cause it will result in loss. What I would like to know: Do you know any bot at cryptotrader or elsewhere, or a indicator strategy that can prove by backtest, that it would generate profits in 2014s downtrend? Are you talking about bitcoin? because in this case we are obviously in an uptrend. $1000 is the new psychological barrier/floor where everyone is making money at by buying every single dip that goes below $1000, so keep buying the sub $1000 dips. I would not bother with bots. If bots worked then everyone would be rich. Im yet to see a bot that gives you consistent profits. Title: Re: Trading strategy for ongoing downtrends? Post by: shinratensei_ on February 17, 2017, 07:37:25 AM Do you know any bot at cryptotrader or elsewhere, or a indicator strategy that can prove by backtest, that it would generate profits in 2014s downtrend? Can I generate a profit if someone was trying to dump a lot? At least we put the reverse thing, the mostly bot was working if the price is getting pump and sell them and buy on the lower price, and to generate profit for the downtrend we must put the lowest buy and sell them on the little pump. But the dump can not be measured. That's why the bot maker are giving an awareness for us to don't try to use it at the downtrend. |