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Analysis of Litecoin weekly trading strategy: trade or not, profits are there

Litecoin was the best performing asset all month. The cryptocurrency is up 30% in the last month and investors are happy. However, if you opted for automated trading, there was a chance of a 3% higher profit as the best performing strategy had a 33% return over the last month.

Ichimoku cloud

Ichimoku Cloud is the best performing trading strategy in the last 1 months. If you execute the strategy in a period of 6 hours, you can achieve this 33.27% return in a month (based on previous data).

This strategy uses the popular Ichimoku Cloud indicator to generate buy and sell signals. The Ichimoku cloud is a very versatile and robust indicator that is useful in a wide variety of markets. There are several ways to read the indicator and get buy / sell signals.

The Ichimoku cloud strategy tested on Mudrex returns

How does it work: Ichimoku is a lagging indicator and doesn’t make predictions very well. However, macro trends are captured.

Performance: The Ichimoku cloud strategy is exceptionally good over the different time frames. Get the best result over longer periods of time to confirm and capture part of the uptrend. In short periods of time, performance is worse, but it is good for macro trends.

Aroon oscillator

An Aroon oscillator is a trend following indicator that uses aspects of the Aroon indicator to measure the strength of a current trend. The strategy uses the Aroon oscillator to predict future trends and make money. This strategy fared worse than Ichmoku Cloud and the general trend over the past month. With this strategy, a trader would have got 22.27% versus an overall trend of 30%.

Aaron Oscillator Created on Mudrex

Direction movement display with EMA

Like the Aroon oscillator, the directional movement indicator seeks to identify trends in the market. In connection with EMA they can recognize strong up and down movements together very well. This makes the combination very useful in both bullish and bearish markets. However, if the DMI is choppy, the performance is only mediocre.

DMI Returns tested on Mudrex

While this strategy is one of the most widely used strategies for novice level trading, it was one of the worst performing strategies in the Litecoin bull market. The run with the 1h candle with only 3 trades was modest 13.6% returns.

Disclaimer: Blockmanity is a news portal and does not provide financial advice. Blockmanity’s role is to educate the cryptocurrency and the blockchain community about what is going on in this area. Please do your own due diligence before making any investment. Blockmanity is not responsible for any loss of money.

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