How To Buy Crypto In The 2021 Bull Market

Traders are strange. They love Bitcoin and cryptocurrencies when they trend up and then panic sell when the market corrects. Keeping in mind that the golden rule is always to buy-low-and-sell-high, how to buy crypto in the 2021 Bull market?

Dollar-cost averaging is a great option to accumulate cryptocurrencies in the long-term. It involves splitting the investment into multiple buy orders over time. In this way, you can reduce the price volatility effect, averaging your cost of purchase. You may not buy the perfect price bottom, but certainly, you don’t risk buying the top as many traders and investors did in 2018.

A smarter way to buy crypto

You can optimize further the DCA approach by adding technical indicators to your strategy. That allows you to spot the best time to buy crypto, even in a steep Bull Market like the one we are experiencing in 2021.

The RSI is a handy indicator in a Bull Market, as it helps identify quite precisely the price dips and thus the best time to buy crypto. Every time the RSI is lower than 30, generally, that represents a very convenient buy opportunity.

The long-term game

Crypto Bull Markets, on average last around one year, so we may still have some months ahead to take advantage of prices trending up. 

One of the main risks in a Bull Market is to buy crypto when their price is going up, falling into the FOMO traps, rather than waiting for the price to retrace at more reasonable prices. That’s what buying at low values of RSI is meant for.

Another tricky mistake most traders make in a Bull market is to forget to take profit on the way up, as they are too confident in the trend’s strength.

To avoid that, the rule takes profit on the buy orders when the price increases on short-term surges.

How to buy crypto and take profit with Coinrule

First, you need to identify the coins you want to accumulate in the coming weeks. Would you like some suggestions? This article describes the biggest crypto trends in 2021 and lists the coins that may result as winners at the end of this Bull Market.

On Coinrule, you can set up to three coins per rule to trade. Every time one of these coins dips, the rule will buy the set amount, and then it will sell in profit part of the position once the price rebounds.

to buy Before launching the rule, don’t forget to set the frequency of the buy orders. You can set the rule to run “no more than once every 12 hours,” for example. In this way, you make sure that the strategy doesn’t run out of capital soon, and you don’t overexpose your with too many trades in a short period of time.

Trading Strategy For Beginners On Coinrule - Catch The Dips

Taking your first steps into automated trading may be challenging. Our mission is to make it as easy as possible with our platform. Here follows the best trading strategy for beginners on Coinrule. It’s a simple trading system that you can run for free forever on a Starter plan. The strategy buys the dips of a coin to sell with a profit. A stop-loss protects every trade.

Buy Condition

Crypto markets offer high volatility and, thus, excellent opportunities for trading. Excluding times of severe downtrend, buying the dip is a simple and effective long-term trading strategy. The buy-signal is set to a 2% drop in a 30-minutes time frame.

Sell Condition

Each trade comes with a take profit and a stop loss. Both set at 2%. You can adjust these percentages to the market volatility as an advanced setup.

The parameters of this strategy are very intuitive and make this system the best trading strategy for beginners on Coinrule.

You can backtest the outcomes using the backtesting tool from Tradingview.

How to backtest the strategy on Tradingview

As a first step, select the coin on which you want to run the strategy. Then, choose the 30-minutes time frame for the chart. Finally, find among the “Indicators and Strategies” those published by Coinrule. Select Buy the Dips.

Adding the strategy to the chart, you will get the historical results from the backtesting tool. Net profit, the profit factor, the percentage profitable, and the max drawdown represent great indicators to assess the strategy’s quality.

Adjusting the parameters to experiment and optimize the results is very easy. As market conditions may vary over time, and the volatility can increase or decrease, you may try to improve the setup to catch more opportunities. Values by default are set to 2% for the dip, the take profit, and the stop loss, but you can easily modify them and see in real-time how performances would have changed.

By default, each trade has a size of 30% of the total capital allocation. That helps in providing a more reliable profit’s outcome, fitting your needs. You can increase or reduce it according to the amount you are going to trade.

Another essential aspect of assessing an automated trading strategy’s profitability is to account for trading fees. The default value is 0.1%, which is the base fee paid on Binance, the largest cryptocurrency exchange. Change the percentage to make it equal to your transaction cost on the exchange you will use to run the strategy.

Now that you are confident about the setup of the strategy, you can launch it on Coinrule.

How to build the Strategy with Coinrule

The strategy “Buy the Dips” is available among our templates. It’s free for all our users. All you need to do is to connect an exchange to unlock the template.

Once you selected the template in the library, all you need to do is complete some parameters for the rule.

• The coin you want to trade. If you want to run the strategy on multiple coins, you can choose “any coin” (all available on the market) or “any of my coins” (all those that you already hold in your wallet).
• The wallet you want to use to trade the coin. For example, if you want to trade Bitcoin, you can select a fiat currency or a stable coin. For more info on the topic, read here.
• The amount you want to trade for each order.

You are now ready to launch the best trading strategy for beginners on Coinrule!

Backtest A Trading Strategy With Tradingview And Run It On Coinrule

One of the most common questions we get about coinrule is: what are the returns I can expect on my trading strategies? In this article, we will present how to backtest a trading strategy with Tradingview and run it on Coinrule.

Since you can build hundreds of different trading strategies on Coinrule, running on so many different coins, it isn’t straightforward to reply with a quick and unique answer. The good news is that you can backtest some trading strategies using Tradingview to check the historical returns. A powerful tool that most crypto traders use every day.

Our social trading account

On Tradingview, you will find the Coinrule account, which we regularly post our trading scripts. We publish automated trading strategies that you can quickly run on your account using Coinrule.

For each script, you will find a detailed description of the parameters of the trading strategy so you can apply them easily into the Coinrule trading editor.

Backtest a trading strategy with Tradingview

Let’s have a look, for example, at Low Volatility Buy + TP & SL. The buy signal comes when the MA 200 is greater than the MA 100, and the MA 50 is greater than the MA 100. Each trades comes with a take profit at 8% and a stop loss at 4%. The presented trading system is optimized in a one-hour time frame.

To backtest a trading strategy on Tradingview, select the coin of your preference, set the desired time frame, and add the trading strategy to the chart.

Tradingview shows the net profit that the strategy would have returned, how many trades the strategy open and closed, the percentage of profitability of the strategy, the maximum drawdown of the strategy, and the profit factor. These are more important indicators that will tell if this trading system fits your need or not.

The chart shows precisely when the strategy would have executed, allowing a better understanding of how the trading system works.

You can adjust all the relevant parameters to see in real-time how results would have changed based on these changes.

To have more realistic results from the backtest on Tradingview, set up an initial capital aligned to what you expect to invest with this trading system. You can also add a commission on each trade. Some trading strategies may look profitable, but when you account for the fees, then you realize that they’re not that profitable after all.

How to run this strategy on Coinrule

In a matter of clicks, you can backtest this trading strategy on Tradingview on many coins, experimenting with different setups, such as the triggers for profit and loss. When you are ready, you can set up this trading strategy on Coinrule in just a few steps.

You can decide to run this strategy on the coin that returned the best results from the backtests on Tradingview, or you can let the bot trade all coins available on the market if you feel confident in the setup so that you can catch more opportunities.

This is an automatic strategy that you can work in most market conditions. Being a long strategy it may underperform in times of broad market downtrend.

When To Buy Or Sell A Coin - A Multi Time Frame Strategy

The basic theory of using the RSI is to spot overbought and oversold conditions on the price based on the level of the RSI. Generally speaking, values of RSI above 70 indicate that the uptrend is overextended, while values of RSI below 30 could signal an excess of selling pressure. How to optimize the timing to decide when it’s the best time to buy or sell in an RSI-based strategy?

From theory to practice

The theory says that you should sell when the RSI is above 70 and buy back when the RSI is lower than 30. All good, the rule is simple! Unfortunately, there is a very small issue that prevents this theory from being translated directly into an actionable trading strategy. The RSI could stay above 70 (or below 30) for a prolonged period. That leaves the trader with a lack of indication of when it’s actually the best time to buy or sell a coin. 

In this case, applying blindly the rule of selling when the RSI is above 70, would have translated in missed profit of around 20%. How can we optimize to spot the best time to buy or sell? 

Optimize signals on a Multi-time Frame Strategy

First, mark the period in which the RSI is above 70, and do the same when the RSI is below 30 on a high time frame. So, for example, the initial signal could come from an RSI on a daily timeframe. 

Then use a Moving Average to spot the best time to buy or sell the coin. So, when the price is below a Moving Average, that would indicate that the trend is weakening. On the other hand, the price above the Moving Average is a sign of momentum. I used an MA100 as it generally provides quite precise indications.

The exciting part of using Coinrule is that you can apply different time frames on your trading strategy to make it more effective. 

When you identify the point at which the strategy would have triggered the buy and sell orders, zoom out again on the higher time frame to double-check the RSI values at that specific point. 

Best time to buy or sell Bitcoin

One interesting thing is that I could spot this same pattern also on the Bitcoin chart.

This setup would have caught the two major turning points of the trend in the last four months.

How to build this strategy with Coinrule

Coinrule allows you to build a multi time frame strategy that analyzes different price patterns on different levels to optimize your timing—defining multiple conditions to trigger the orders.

This is an example of how you can build such a strategy with Coinrule.

Bear in mind, more restrictive conditions reduce the number of trades the rule will execute and generally should provide better results. Loosening the parameters slightly will allow for catching more opportunities but could lead to less effective trades. 

Find the perfect balance for your needs by testing the setups on the Demo exchange. Play around with these four elements to create as many rules as you need until you define the ideal setup that fits your need. 

DISCLAIMER

I am not an analyst or investment advisor and nothing in this article constitutes investment advice. Everything that I provide here is purely for guidance, informational and educational purposes. All information contained in my post should be independently verified and confirmed. I can’t be found accountable for any loss or damage whatsoever caused in reliance upon such information. Please be aware of the risks involved with trading cryptocurrencies.

Oversold Reversal Optimised - How To Improve Your Entries In A Strategy With RSI

The main principle of trading is to buy low and sell high. That it’s quite easy to say in theory, but in practice, it’s totally another story!

One common indicator that people use to try to spot when the price conditions are oversold is the RSI. When the indicator approaches values of RSI of 30 or lower, that usually point at oversold conditions, this is what theory says. In practice, if you buy “blindly” when the RSI is lower than 30, you could find yourself stuck in a trade in loss.

Following this principle, you would have bought ATOMBTC when the RSI was just below 30, but as you can see, the price dropped reaching values around 18!

How To Improve The Entries?

What I like to do is to combine the use of the RSI with a short term moving average. The moving average I prefer to use for this purpose is the MA(9).

The beauty of this strategy is that, not only you can spot the oversold condition, but before entering into the trade, you can wait at least for a sign of a trend reversal. We would enter with the price above the MA(9) and still with a low RSI, to have plenty of upside to selling the position in profit.

Generally, this works quite well. You can read more about this strategy here. The rule perfomed better in times when the market was trending up, and then strated to underperform when Bitcoin dropped dragging lower the whole market.

I will go through some examples of trades that are executed on the market.

Firstly, with MATICBNB the rule worked perfectly. We have a low RSI, combined with the price above the MA(9). You can see that we managed to catch a 1.5% price increase precisely.

Then, in another trade with VETBNB the position was closed too early. In fact, the take profit at 1.5% got filled, but the price went up 4.4%.

Instead, with ZILBNB the price had a minimal rebound, only to slide lower immediately after. The stop loss was filled, and I am quite happy that the stop loss was in place because the prices moved on the downside thereafter, dropping around 10%.

The optimised oversold reversal strategy

Let’s see how we can filter out, even more, these cases where the rebound isn’t strong enough to close the trade in profit. That would optimise the entries to make sure that the point at which I get the signal is an excellent point of price reversal.

Something interesting that I noticed is that if we zoom out a bit the chart on a four-hour time frame, the RSI was quite low. That means that there wasn’t enough power for the trend to push higher.

On the other hand, as you can recall from the previous case where the bot provided a perfect entry point on VETBNB, in that case the RSI has a much higher value, which means that there the trend has still a strong momentum. When the price is still trending upward, there are more chances to get a trade in profit.

So, these are the cases that I prefer to catch up with my strategy. Of course, my plan will trade less, but hopefully more efficiently.

 

Combining these elements, I built another strategy to try to improve the buy signals. Therefore, to optimise the entries of my strategy, I add an additional condition to enter into the trade only if the RSI is trending on a larger time frame.

Try it now yourself!

Trade safely!

Scalping Oversold Altcoins - Automated RSI Trading Strategy

The best way to build an automated trading system is to find specific patterns and incorporate them into your rules. The RSI is useful to build a strategy for scalping oversold Altcoins in times of volatility.

Bitcoin’s trend showed to have further steam to keep going up these days. It’s currently forming a similar pattern to the one we had during the last week of April. The size of the price moves is even larger, and that could anticipate an even more significant breakout. 

If the price moves in the same way as in April, very likely this will break upward. In anticipation of the upcoming halving, we could witness some volatility and big shakeouts could definitely happen. That makes it very challenging to set up a specific percentage trigger to buy the dips on Bitcoin. I still think that buying when the price drops is a profitable approach, especially if you have a medium to long-term investment horizon. In that case, you could buy when the price drops around 2%, that would be a reasonable approach. 

Where are the best opportunities?

At this point, Altcoins have been under pressure for days, and that could offer even more interesting opportunities. If you want to start a more aggressive automated trading strategy that trades a bit more in the in a very short term, you can run some scalping on oversold Altcoins.

Looking at Ethereum, for example, which is quite a good proxy for most of Altcoins, we can see that basically, the trend was steeply on the downside since the beginning of May. We are consistently below a long term moving average (in this case, the MA200). 

An interesting automated trading strategy at this point would be to buy small dips scalping oversold conditions, then take profit on small rebounds. We see that every time the RSI goes below 30, that provides at least a very short-term buy-opportunity.

How Coinrule helps you?

On Coinrule, you cans set up a strategy like the following.

If any coin is in RSI lower than 30 in a timeframe of 15 minutes and if that coin has a market cap $100 million 

PRO TIP: you could also set up an even lower threshold for the RSI (e. 20) to try to catch the very bottom of the dip.

Buy 17 USD of that coin with my BTC wallet 

THEN, if that coin is a price increased by 1% from the price at which I bought 

Sell 100% of that coin back to my BTC wallet.

Adding a filter for market cap in the first condition allows you to avoid buying some random shitcoin with your strategy.

Altcoins always have higher volatility than Bitcoin, so in times of uncertainty, scalping oversold Altcoins with short-term trades allows you to catch more opportunities and add value to your wallet.

Catch The Dips After Bitcoin Breakout

The crypto market broke higher, especially Bitcoin and Ethereum, are leading this price rally. Previously, we identified a resistance area around 7700 USD for Bitcoin. And as soon as we broke this level, the price jumped up almost vertically. Buy the dips after Bitcoin breakout could be an interesting strategy to trade following the macro trend.

So what we can expect from here?

If we draw a line that passes through the previous three tops, we can identify an upward channel that was clearly broke with this rally. It’s common to see an uptrend fading after three consecutive new highs. What we saw, instead was the price heading lower only to find support around the area between $6600 and $7000. From there, Bitcoin kept going up, consolidating before this major breakout.

This is a sign of underlining strength and substantial demand for Bitcoin. So what I would expect here now? 

When the buying pressure slows down, we should see some sideways moves. And you could take advantage of this set up with Coinrule.

Buy the dip of a Bitcoin breakout with Coinrule

I would set up a strategy that buys the dips of Bitcoin and then tries to sell the rebounds. 

Let’s zoom in on the 15-min chart to try to see how we can set it up properly. How to define the percentages in the strategy? 

I usually look at the preview price actions as they provide excellent insight into what we can expect from future moves. 

I use Tradingview to calculate the magnitude of previous price decreases and also the timeframe in which they happen. Often, in a time frame of two or three hours, shakeouts of around 2% on down occur. 

Keeping that in mind, I will set up the following strategy.

If Bitcoin price has a price decrease of 2% in a timeframe of three hours

I buy 20 USD of Bitcoin with my BUSD wallet. 

Then, if that coin to have a price increased by 2.5% or a price decreased by 1% from the price at which I bought 

I am going to sell 100% of Bitcoin back to my BUSD wallet. 

So I will set this rule to run five times in total, and I will launch it.

This rule will perform better in an uptrend with volatility. Buy the dips of a Bitcoin breakout allows you to follow a macro uptrend. The more drops and rebounds there will be, the more the rule should catch better these buy-opportunities.

How to use Use Moving Averages In A Trading Strategy

Moving averages work better when there is sufficient price momentum to ignite a solid uptrend. Here I will show you one of the best moving average trading strategies that you can create with Coinrule.

Let’s have a look at the current market conditions. This is the macro picture on Bitcoin’s price. We had a steady uptrend since the lows in the mid-March. Since then, the price kept going up, and finally, we broke a very crucial level, finding resistance around $7,700.

The moving average (200) provided very nice support since the beginning of April, and this is an encouraging sign. Also, the previous resistance around $7,000 could probably offer solid support in case of retracement.

Let’s now have a look at what we can expect from the Altcoin market. Bitcoin’s dominance since the end of March had a steady decline. That means that the Bitcoin moved slightly up in this period, but the broad capitalization of Altcoin grew faster than the price of Bitcoin, which is something very encouraging. That could offer interesting opportunities in the short term.

How to take advantage of that using a Moving Average trading strategy?

 I launched this rule yesterday, price crossover with momentum trading with my BNB wallet. Let’s have a look at the trades executed so far. The strategy is trading quite a lot. 

Let’s see how I built this strategy. 

If any coin on the market has a price crossing above the moving average (200) in a timeframe of 15 minutes and that coin has an RSI greater than 60 in a timeframe of 15 minutes 

Then I’m going to buy $12. You can select the amount that you prefer, and choose the wallet you want to use for the transaction, in my case, the BNB wallet. 

When the price Has an increase of 2% from the price at which I bought

Then I’m going to close the trade selling 100% of that coin. 

How the strategy works

The best way to use a moving average in a trading strategy is to filter out periods of low volatility when the price is moving sideways. What I want to achieve with this strategy is to catch the crossover of the price above the moving average (200) coupled with certain price momentum. That could indicate that a breakout could lead to a stronger uptrend right after.

In the example below, the strategy bought and sold KAVA vs BNB successfully. The decision to take profit at 2% is arbitrary. I decided to use a conservative approach, given a still broad uncertainty in the market. You can adjust that to your own preferences. 

This is an automatic strategy that you can run whenever you notice a positive sentiment and volatility increasing on Altcoins.

Bitcoin Trading In Downtrend And Possible Reversal

Bitcoin is trading in a downtrend and a possible reversal could happen very soon. That worked perfectly with the rule that we launched a few days ago.

The rule is in profit. We basically had the one full trade, one buy and one sell, on average every day.

I’m leaving this rule here, running for at least another couple of days, as at this point we can’t see any significant signs of reversal.

The only early indicator, so far, it’s a very nice divergence between the price in the RSI. To be precise, there is a lower low on the price and a higher low on the RSI, which is quite a good sign. Also, last time the price broke above the previews resistance, it broke outside the breaking outside from a downtrend channel, just like this.

How to trade with Coinrule this setup?

I started two new rules to advantage of the eventual price momentum that would come if the price breaks out from the downtrend. 

I set up in the first condition to look for 

Any coin to have a price crossing above the moving average (100) in a timeframe of 15 minutes. Also, I want the condition to be triggered if that coin has an RSI greater than 60. 

Here are the full parameters of the rule.

Considering the uncertain phase of the market, it’s better to be prepared for all the scenarios. Remember, Bitcoin is still trading in a downtrend but a possible reversal is likely to happen. Therefore, I am keeping both of these strategies open. One takes advantage of momentum if price breaks higher and I’m still leaving the previous one on Bitcoin in case price drops lower and more volatility comes. 

Catch Low - Exchange for Higher Price Going Sideways

We were looking for signs of weakening of this uptrend For Bitcoin. I suggested you look at the crossing of the price below the moving average (9) on a timeframe of four hours. With Coinrule you can buy low and sell high with price going sideways.

The price started to move sideways building a pennant, that in the end broke on the downside. 

I am looking at the 15 minutes, and actually, we can see that after losing momentum price started to drift on the downside slowly. 

So how to take advantage of this setup?

Let’s go now on Coinrule, where I started a rule on Kraken. It traded multiple time selling high and buying low. 

Let’s see how I set up this rule. 

I wanted to sell part of my Bitcoin when the price has an increase of 0.5% within five minutes. This part is important because that gives me the possibility to follow how the price is going, as the price reference changes every 5 minutes to calculate the price change based on the new price.

You may also want to add another condition to make sure that the rule sells only if Bitcoin’s price is below a certain threshold. If the price clime above that price, maybe that could invalidate our thesis that the price is sliding lower.

After selling I am going to buy back the coins when Bitcoin drops 1% from the price at which I sold.

In this way, I know that I am going to sell on price increases, but only if the price stays in that scenario of sideways moves. The classic strategy “Buy Low – Sell High” works very well with price going sideways.

If the price increases above 7400, then I’m not selling because maybe I’m expecting another scenario that I’m going to manage with another rule.