Golden Cross

Strategy Intent

Trading Criteria Details
Market Suitability Bull
Difficulty Advanced
Strategy Type Breakout
Take Profit
DCA
Positive DCA
Pending Orders
Trailing Stop Loss
Published
Demo Server

Note:

  1. Click the cloud icon to view the demo server for this strategy;
  2. Note if the cloud icon is showing in red it means the demo server is not available right now;

Strategy Overview

  • The Golden Cross strategy is a long term, high risk trading strategy designed to buy into strong upward trends.
  • The intent of this strategy is to buy into a bullish upward trend and ride it through until the trend changes direction downward.
  • It will ride the trend, toss the losers and back the winners.
  • PLEASE NOTE: This is a HIGH RISK strategy that relies on strong upward trends and bullish sentiment in the market. It makes use of a STOP LOSS to prevent significant losses from the potential to catch a falling knife when the upward trend reverses quickly. The possibility exists that you could lose some or all of your investment capital and therefore you should not invest money that you cannot afford to lose. You should be aware of all risks associated with investing / trading in cryptocurrency and should seek professional financial advice from an independent, competent, licensed accountant or financial advisor.

Entry Criteria

  • The strategy entry criteria employs a triple cross buy strategy that includes a Golden Cross
  • This is combined with both positive DCA (Anti-DCA) to improve position size on winning trades and negative DCA where the uptrend pattern breaks down.
  • Trailing is turned off to ensure we buy into the upward trend as early as possible and sell as soon as there is a trend reversal.

Trade Management

  • The strategy applies the 2% and 10% rules of trading.
  • Position size is limited to 2% of risk capital per trade.
  • Only 5 trading pairs are active at any time to ensure no more than 10% of total risk capital is employed in trading at any time.
  • The strategy makes use of a stop loss to toss losing trades early and avoid falling knives if the trend reverse quickly or if negative DCA recovery is not possible.
  • A trailing stop loss is employed rather than a fixed stop loss.
  • Take profit is employed to prevent loss of profits.

Exit Criteria

  • This strategy looks for a reversal of the short term trend indicator to determine if the upward trend has completed its cycle.

Strategy Tips

  • This strategy works best in Bull market conditions when volatility is at its highest.
  • The key to this strategy is to ensure you do not overextend yourself by getting your max trading pairs and initial cost right to suit your trading budget.
  • Use the DCA calculator we provide to work these values out covering at least 4 levels of DCA for all your pairs. Once you have those values enter them into this strategy. The DCA calculator also ensures you have a 50/50 split on your trading budget to ensure you have sufficient budget for the sell side of this strategy.


TOP


  • goldencross.txt
  • Last modified: 14 days ago
  • by cryptocoyn