Motivation

 

The momentum feature is well known and researched in the market. Momentum trades/signals often result in out sized positive returns when trades go well in their favor. At the same time, almost all momentum methods/signals suffer from frequent, small and multiple losses.

 

Dynamic indicator/system is a proprietary systematic method designed to capture momentum on well established and liquid  Crypto currencies such as Bitcoin and Ethereum. 

 

It aims to identify bullish / bearish patterns in a systematic manner and uses volatility adjusted entry levels and trailing points. The method employs a proprietary method to filter out market noise from an underlying trend to ensure whipsaws arising from a trend-following method are removed.

 

The expected outcome of using this is to improve risk adjusted returns on Bitcoin and Ethereum.

 

Time Frame

Crypto trades 24 hours a day and 7 days a week. Most of the movement in the market is limited to UK and US time zones. Thus, it is prudent to use this strategy on 60 Minutes or higher time frame. Given the volatile nature of the Crypto, it is otherwise susceptible to whipsaws.

 

Our preference is to use this on 90 Minute or 4-Hour charts to balance the trade-off adapting to changing market dynamics quickly and trade costs.

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Trade Usage

The indicator is available as a TradingView Indicator if you wish to use it yourself to trade. It can be used either as a standalone indicator/method or can be used as an additional confirmation to user’s Long/Short method.

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