Litecoin’s Weekly Trading Strategy Analysis: Trading or not, profits are there

Litecoin has been the best performing asset the entire month. The cryptocurrency is up by 30% in the last month, and investors are happy. But if you were into automated trading, there was a chance of 3% more gain as the best performing strategy last month gave 33% returns.

Ichimoku Cloud

Ichimoku Cloud is the best performing trading strategy in the past one month period. Running the strategy at a 6h time frame can get you 33.27% return in a month (based on past data).

This strategy uses the popular indicator Ichimoku cloud to generate buy and sell signals. Ichimoku cloud is a very versatile and robust indicator useful in a variety of markets. There are multiple ways to read the indicator and get Buy/Sell signals.

Ichimoku Cloud strategy returns tested on Mudrex

How does it work: Ichimoku is a lagging indicator and does not do prediction very well. However, it does capture macro trends.

Performance: Ichimoku cloud strategy performs exceptionally well across the various time period. Giving the best result at longer timeframes confirming and capturing some part of the upward trend. It performs worse in small timeframes but well at macro trends.

Aroon Oscillator

An Aroon Oscillator is a trend-following indicator that uses aspects of the Aroon Indicator to gauge the strength of a current trend. The strategy uses the Aroon Oscillator to predict future trend and make money. This strategy performed worse than Ichmoku Cloud and the general trend this past month. Using this strategy a trader would have made 22.27% compared to 30% general trend.

Aaron Oscillator Created on Mudrex

Directional Movement indicator with EMA

Like the Aroon Oscillator, Directional movement indicator tries to identify trends in the market. When coupled with EMA, they together are able to identify strong up moves and down moves very well. This makes the combination very useful in bullish and bearish markets. However when choppy DMI performs only moderately.

DMI Returns tested on Mudrex

Although one of the most used stratrgy for trading at the begineer level, this strategy was one of the worst performing strategy in the Litecoin’s bull market. The run with the 1h candle with just 3 trades gave a modest 13.6% returns.

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