The Bull Bear Bitcoin investment Strategy

Our research shows that Bitcoin is a momentum driven market that has upside risk but also can slowly loose more than 90% of it’s value. The strategy looks for a bullish move to enter. In other words, if Bitcoin rises, the strategy will participate. It the prices continues climbing, it holds and rides the wave up. If, on the other hand, the market shows weakness, it exits and waits for a better move. History shows that this type of momentum works in this particular market.

This is a medium to long term strategy and uses daily signals. Depending on the market, It may trade 2 or 3 time in one week or it may trade once in two months.

Holding on to Bitcoin is fine. But if you are unsure and feel there is a chance that Bitcoin ends up ‘not working out’ (i.e. slowly going to zero), this strategy will get you out and into cash long before that.

Holding Bitcoin has a historical drawdown fo -93%. That means that there was a point when if someone bought in, they would have lost 93% of their money. The strategy has a backtested historical drawdown of -63%. This is still large but survivable. In the first scenario a $100,000 account drops to $7,000 before it (hopefully) starts recovering, in the second it drops to $37,000.

Backtested results are here.

The strategy runs live at Bitmex. We will provide read only access soon.

It’s free for now.

The strategy will be available at TokenSets.com as a managed ‘Set’ which you can just invest in, much like a stock or ETF. Although free for now, there may be a standard management fee once the strategy makes money.