March 30, 2021

Best Bitcoin Trading Strategies

Best Bitcoin Trading Strategies

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Here are four of the best bitcoin trading strategies using moving average crossover signals to swing trade and trend trade the ^BTCUSD pair. These are examples of trading signals for capturing moves to the upside and going to cash if price starts moving down. 

5 day / 20 day ema crossover: Flying Eagle

5 day / 30 day ema crossover: Flying Falcon

10 day / 30 day ema crossover: Flying Squirrel

10 day / 50 day ema crossover: Flying Dragon

Best Bitcoin Trading Strategies

The above chart shows the Steve Burns Moving Average Ribbon and all of the following crossover signals. 

Below is a backtest based on buying the ^BTCUSD when the 5 day EMA crosses and closes over the 20 day EMA and then selling when the 5 day EMA closes back under the 20 day EMA:

Best Bitcoin Trading Strategies

Best Bitcoin Trading Strategies

Below is a backtest based on buying the ^BTCUSD when the 5 day EMA crosses and closes over the 30 day EMA and then selling when the 5 day EMA closes back under the 30 day EMA:

Best Bitcoin Trading Strategies

Best Bitcoin Trading Strategies

Below is a backtest based on buying the ^BTCUSD when the 10 day EMA crosses and closes over the 30 day EMA and then selling when the 10 day EMA closes back under the 30 day EMA:

Best Bitcoin Trading Strategies

Best Bitcoin Trading Strategies

Below is a backtest based on buying the ^BTCUSD when the 10 day EMA crosses and closes over the 50 day EMA and then selling when the 10 day EMA closes back under the 50 day EMA:

Best Bitcoin Trading Strategies

Best Bitcoin Trading Strategies

(All charts and backtesting data courtesy of TrendSpider.com. Price data used from the Kraken platform).

These backtested signals show how Bitcoin can be a great asset for trend trading and used to diversify your trading system.  

This post is for informational purposes and is not investment advice.