DYNAMIC - A SWING TRADING SYSTEM - CRYPTO

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.

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.

Elements of the indicator

BUY/SELL markers - They depict the BUY or SELL at the open of that bar. The set up is ready at the bar prior.

EXIT BUY/EXIT SELL markers - They depict the EXITs on BUY or SELL at the open of that bar. 

SAR SELL - Stop And Reverse to Sell - They depict when to Exit a Long and Enter a Short at the same time

SAR BUY - Stop And Reverse to Buy - They depict when to Exit a Short and Enter a Long at the same time

A ready BUY set up is depicted by Green vertical bar. A ready SELL set up is depicted by Red vertical bar.

Example Chart: 

ETHUSD - 90M Indicator.png
Computer Programming

Automated Trading of DYNAMIC - Crypto Signals

DYNAMIC - Crypto can be configured to auto-trade on your crypto trading account. The strategy is now available for automated trading on MUDREX, a platform that allows automated trading in Bitcoin and other Crypto pairs across several platforms. You can link your existing Bitcoin or Crypto  trading account to their platform and avail the benefit of this strategy automatically placing trades for you based on the risk parameters set up by you.

You can join now to get a $25.00 Signup Bonus.

 

Leverage in CRYPTO Trading

Several Bitcoin trading platforms offer very high leverages (as much as 1:100 or 100x) to lure retail/small traders into trading Bitcoin with an allure of lofty returns. These set-ups are usually recipes of disaster. While it is certainly possible to make outsized returns using such leverage for a very short duration of time, over the long run such endeavors only result in wealth loss and heartbreak. 

Our aim is to provide users with a consistently profitable strategy that can survive over long periods of time and with manageable Drawdowns. We therefore suggest no more than 0.5x-0.6x Leverage. Yes, you read it correctly - we advocate a maximum of 50-60% of your capital allocation to a trade while the rest should provide cushion for weathering through tough times. 

Back Test Performance

The initial Backtest was conducted on TradingView PineScript and following are the results: 

ETH/USD - 90 Minute Time Frame

Time Period: 4 Years - Jan'17 - Dec'20                             Starting Capital: USD 5,000

Leverage Used:  0.5x of account equity                           Commission & Slippage: 0.05% on each side of trade

Total Return: 1178% CAGR: 89%                                Max DD: 31.6%

ETHUSD - 90M Backtest.png

ETH/USD -  4 Hour Time Frame

Time Period: 4.5 Years - June'16 - Dec'20                         Starting Capital : USD 5,000

Leverage Used:  0.5x of account equity                            Commission & Slippage: 0.05% on each side of trade

Total Return: 3183% CAGR: 117%                               Max DD: 27.5%

ETHUSD - 4H Backtest.png

BTC/USD - 90 Minute Time Frame

Time Period: 4 Years - Jan'17 - Dec'20                                 Starting Capital : USD 5,000

Leverage Used:  0.6x of account equity                               Commission & Slippage: 0.05% on each side of trade

Total Return: 864% CAGR: 76%                                     Max DD: 31.5%

BTCUSD%20-%2090M%20Backtest_edited.jpg

BTC/USD - 4 Hour Time Frame

Time Period: 4.5 Years - June'16 - Dec'20                             Starting Capital : USD 5,000

Leverage Used:  0.6x of account equity                                Commission & Slippage: 0.05% on each side of trade

Total Return: 1043% CAGR: 72%                                    Max Draw Down: 23.7%

BTCUSD - 4H Backtest.png

Start your FREE 1-Month Trial Now!

$34.99/Month after Trial ends

Frequently asked questions

What is DYNAMIC - Crypto?


DYNAMIC is a proprietary swing trading system developed by Decibel Capital. It aims to trade on liquid assets such as Equity Indices, Commodities and Crypto to generate alpha. DYNAMIC - Crypto is the crypto version of the system to trade Bitcoin/USD and Ethereum/USD pairs.




How much money is needed to trade DYNAMIC-Crypto?


There is no minimum requirement of capital to trade this system on crypto. Most brokers allow very small size of Buy and Sell too (as low as $1 in Buy and Sell). The margin requirement may vary by broker that you utilize. We suggest using low leverage (0.5x of Account Size) to size your trades.




How much return is expected from the system?


Systematic or Algorithmic trading aims to generate returns that are above and beyond the simple underlying returns. Returns go hand in hand with the risk undertaken and capital deployed. Decibel Capital has provided an indicative backtest on the product page and that can be used as an assessment of risk:reward of the system.




How do I get access to the system/indicator?


You can start your 30 Day Free trial by clicking on "Subscribe" button above. Once the subscription is processed, we will activiate your TradingView User Id to have access to the indicator. Please ensure to provide your TradingView Id in subscription form.




Do I need a paid account with TradingView to access this system?


No. As a user, you can avail benefits even with a free account of Tradingview. Go to www.tradingview.com to set up your free account.




Do I need other indicators to trade using DYNAMIC - Crypto?


DYNAMIC is a full fledged systematic system that aims to capture large trends. You can club it with more indicators to improve it's performance as per your comfort. DYNAMIC provides a starting point from which several other systems can be germinated. However, you can trade this as it is to generate the expected returns as listed above.




How much does it cost to get access to DYNAMIC - Crypto?


DYNAMIC Crypto is currently being offered at a promotional price of $30/month.




When to Buy or Sell or Exit?


The indicator comes with labels that will tell you when the system is entering a buy mode or a sell mode. For ease of visualization, an occurence of vertical "GREEN" line on the chart will indicate that the system has identified a "BULLISH" regime. If not already Long, you can initaite a position at next bar open. Similarly, a vertical "RED" line on the chart will indicate that the system has identified a "BEARISH" regime. If not already Short, you can initiate a position at next bar open.




Is this a SAR (Stop And Reverse) or Always In Trade system?


NO. The trade strategically enters and exits trades. The easiest way is to look at the bottom of the chart that shows the current state. Green - Long Position in market Orange/Red - Short Position in market Purple - FLAT or No position in market It may happen that at the time of an exit, next entry is also triggered. However, it is not always the case. In such case a "SAR to Long" or "SAR to Short" label will appear on the chart. SAR to Long means Stop and Reverse to Long. We exit our open Short positions and Enter a new Long. In a way SAR to Long = Exit Sell + Enter Long at the same time. SAR to Short = Exit Long + Enter Short at the same time.




What is included in a monthly subscription of DYNAMIC - Crypto TradingView Indicator?


You get access to our proprietary invite only indicator on Trading View. This indicator will show all signals on tickers: BTCUSD and ETHUSD on the exchange: COINBASE. You can plot this indicator on any time frame that you are comfortable with from 1 Minute to 1 Year frequency.




What is your Refund Policy?


Refer to page Terms & Conditions page.