Catch the Bottom- Coinrule Strategy of the Week 5
This week we look at a strategy that utilises the RSI and EMAs to find appropriate entry and exit points for trades. To open trades we look for the RSI to be less than 40 and to have decreased by 3. We also look for EMA100 to cross above EMA50. To close trades we require the RSI to be greater than 65 and also EMA9 to cross above EMA50.
Link to TradingView script:
https://www.tradingview.com/script/ck...
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TradingView Account:
https://www.tradingview.com/u/Coinrule/
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00:10
This week’s strategy will use TradingView signals and utilizes the RSI or relative strength index, and EMAs, or exponential moving averages to enter and close trades. Later, I'm going to show you how to run the strategy on Coinrule and also backtest it on a variety of coins. RSI is a momentum indicator used in technical analysis. The RSI measures the speed and magnitude of recent price changes to signify overvalued or undervalued conditions in the price of a certain asset. The RSI is displayed as an oscillator, a line graph essentially on a scale of zero to 100. It can also indicate assets that may be primed for a trend reversal or a corrective pullback in price. This essentially means that it can act as a signal when to buy and sell. Traditionally, an RSI reading of 70 or above indicates an overbought situation. And a reading of 30 or below indicates an oversold condition.
01:09
EMAs are a type of moving average, that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average. This essentially means that it reacts more significantly to recent price changes than a simple moving average, which applies an equal weight to all observations in the period.
01:31
Now I will go over the entry conditions. There are two sanitary conditions and they're both quite simple. First, is that the RSI is less than 40 and has decreased by three indicating that we are approaching oversold levels.
01:45
The second condition is when EMA100 has crossed above EMA50, like what’s shown in this example here.
01:52
Again, the two exit conditions for the rule are really very simple. The first exit condition is when the RSI is greater than 65, just like in this example here.
02:03
And the second exit condition is when EMA9 has crossed above EMA50, just like in this example.
02:10
Lastly, I'm going to show you how to run the strategy on Coinrule. And also backtest it on TradingView.
02:16
Lastly, I'm going to show you how to backtest the strategy on TradingVew and also run it on Coinrule. First, you're gonna have to find the strategy on a TradingView page. So, this has never been here Catching the Bottom by Coinrule. I'll add a direct link to this in the description of the video, so you don't need to find it manually scroll down, and you'll see a description of the entry and exit conditions just moving over here for your reference anyway. We'll also find some information on how the backtesting data is calculated. And also, some examples of some periods that produce very strong results. For example, MATIC on the 2H timeframe. So, considering we recommend that this pairing is very strong and works well. I'm going to test out on this timeframe here. So come to the chart, MATIC, Tether are on the 2H timeframe.
02:58
You first have to add the strategies and your favorite indicators just by clicking this button here. Come back to the chart, come to indicators. Click that it'll now be under your favorites. And click it here and add it to the chart. So, you can see with three close trades, it made $202 net profit with $1,000 starting capital, giving us a net profit 20% is profitable 100% of the time, which is pretty good.
03:24
So, if you're happy with this performance, come to Coinrule and design your strategy. So, if TradingView signal is a buy, then I want to buy $250 of MATIC because this performs well within the USDT wallet as a limit order. And then if the TradingView signal is a sell, I want to sell 100% of the amount bought of that coin to a USDT wallet as a limit order. Start immediately. Execute 100 times in total, and then name this rule, Catch the Bottom, click launch.
03:53
And you'll see here you're provided with a webhook URL and a message. So come back to the chart here. Come to the strategy, just highlight it here highlight these three dots. Under more click that and click Add alert on v3 Catch the Bottom. Click this. And you'll see you are provided a box here for the webhook URL and the message. Copy this. Put this in the webhook URL box. And copy the message. Put it in the message box. Click Create. Come back to Coinrule. Now click launch.