CryptoCurrency : Here’s what happened when you used the MA crossover strategy to trade BTC/USD in 2018
The moving average crossover is a classic trading strategy used in many markets. We tested the strategy in the BTC/USD market. Here are the details of the test:
* The 8 Exponential Moving Average and 20 Standard Moving Average were used.
* A daily candlestick chart using BTC/USD prices from Coinbase was used.
* A long position was executed when prices moved above the high of the candle that the 8 EMA crossed above the 20 SMA.
* A short position was executed when prices moved below the low of the candle that the 8 EMA crossed below the 20 SMA.
* A profit target was executed when BTC prices moved in favor of the trade by 1,000.
* A stop loss was executed when BTC prices moved above the high of the candle that the 8 EMA crossed below the 20 SMA or below the low of the candle that the 8 EMA crossed above the 20 SMA.
Here is what we found:
Number of Trades Taken = 7
Winning Trades = 6
Losing Trades = 1
Estimated Gains = $6,000
Estimated Losses = $-400
Estimated Net = $5,600a
This data assumes that you had enough capital to buy one Bitcoin every time you placed a trade. Also, it assumes that your exchange that you trade on allows shorting.
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