Crypto Trading Strategy that works

I will tell you a secret: Crypto moves with the markets 90% of the time. So if you can trade ES futures the same shit with crypto.

But then you have to ask yourself, why not just stick to ES?
 
Pekelo said:
I will tell you a secret: Crypto moves with the markets 90% of the time. So if you can trade ES futures the same shit with crypto.

But then you have to ask yourself, why not just stick to ES?
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I know, but you do not get a Sharpe3 when you trade just pure momentum on the SP Futures or Nasdaq Futures. As you might know the higher the Sharpe Ratio the higher the chances you can get rich much quicker with compounding on profits or having a steady income with less (or minimal) drawdowns. And as you know every drawdown hurts, a bigger one even more.
And I will tell you even a bigger secret. All markets are correlated somehow. ES/NQ/TN,/CL/GC/DXY, EURUSD, USDJPY, AUDUSD, USDCAD and so on. Interest rates with Indexes, and Commodities along with Forex. Now figure out for yourself where you can make the most out of it, because the biggest secret is there is no secret as all is included in the data.
 
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Pekelo said:
I will tell you a secret: Crypto moves with the markets 90% of the time. So if you can trade ES futures the same shit with crypto.

But then you have to ask yourself, why not just stick to ES?
More...

The correlation between the S&P 500 and bitcoin is zero over the last six months.

If you average all the rolling six month correlations since 2013 you also get very close to zero.

Correlation is not a feeling it’s actually statistics so maybe you should just look before to state that. or you could tell yourself it’s just like a leveraged tech stock or whatever if that makes you feel better even though it’s completely untrue.
 

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GlobalMacro90 said:
The correlation between the S&P 500 and bitcoin is zero over the last six months.

If you average all the rolling six month correlations since 2013 you also get very close to zero.

Correlation is not a feeling it’s actually statistics so maybe you should just look before to state that. or you could tell yourself it’s just like a leveraged tech stock or whatever if that makes you feel better even though it’s completely untrue.
More...
It matters what do you calculate here. I usually go intraday timeframes. Also the time period matters. It is not that easy as you might say to detect everything.
 
TrAndy2022 said:
It matters what do you calculate here. I usually go intraday timeframes. Also the time period matters. It is not that easy as you might say to detect everything.
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You can vary the correlation window from one month all the way to two years and it shows you similar stuff. Only daytraders care about intraday correlation so I don’t look at that
 
Swingers care too. I cannot speak for the long run, as I do not get higher Sharpes here. Thus I do not extend my analysis when I do more backtesting. The markets themselves are big enough and liquid enough that I do not need that kind of largescale where you need to invest many trillions. So yes I care on correlations and I do not how you are doing it, but there are very serious correlations. I cannot confirm what you are calculating here nor I do not want to deepen that discussion here.
 
Don't trade crypto, but the price is respecting VWAP (white line) on the CME contract.
crypto.png

There are volume/price algos working this thing (trust me), even if only to hedge or rollover crypto risk.
 
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