Mid August Markets Update & The Bitcoin Max (USD) Algo Trading Strategy at Glance
After an intense July in which macro factors provided significant volatility, Bitcoin price movement managed to provide both a weekly and monthly candle favoring the bulls.
Here are some highlights on why the cryptocurrency markets may become even more bullish during August:
- “Coinbase selected by BlackRock; provide Aladdin clients access to crypto trading and custody via Coinbase Prime”. Read more here.
- BlackRock is the world’s largest asset manager, with US$10 trillion in assets under management. This partnership validates the statement that Bitcoin and cryptocurrencies are here to stay and the institutional interest in them is growing at a pace like never before.
- The total altcoins market capitalization excluding Bitcoin is back to $663+ billion reaching its highest since the end of May, 2022.
Altcoin market cap 5 years candle chart. Source: TradingView
- The long anticipated Ethereum Merge upgrade is coming in September.
The Merge is a change of a consensus mechanism that will transition the Ethereum blockchain from proof-of-work to proof-of-stake. As per Vitalik Buterin, the Merge upgrade is now likely to take place around September 15th. The exact date will be announced soon.
Bitcoin’s price in August has also positively impacted some of the algorithmic trading strategies in the Mercor Dapp. Let’s have closer a look at the Bitcoin Max (USD) strategy by LX which currently has a 23.93% APY:
The Bitcoin Max (USD) Algo Trading Strategy at Glance
The bot uses a momentum strategy that enters a trade when the price of Bitcoin shows strength vs USD for a couple of days. The bot assumes that the trend will continue and stays in the position until it gets a confirmation that the trend is over, no matter how long that may be. Although this means the bot never buys the bottom and never sells the top, the strategy consistently outperforms the market over time. Please note that this bot is optimized to beat the market in the long run (years). During bull phases the bot’s return is slightly lower than the market, but during bear phases the bot’s return is significantly higher than the market.
Backtest period: 17–7–2010 to 1–7–2021 Backtest returns: 30.3x the market (If you started with 1 BTC on 17–7–2010 you would now have 30 BTC) 20.5 mln x your investment (If you started with 1 USD on 17–7–2010 you would now have 20.5 mln USD).
Max drawdown: -39% (max loss if you started the bot at the worst possible moment).
Copy Trade the Bitcoin Max (USD) Algo Trading Strategy here.
LX is a former strategy consultant with 15 years of experience in mergers, acquisitions and cost reduction programs. Over the course of his career he has supported many global corporations taking tough decisions using complex financial models. Since 2017 he has been actively trading crypto with his self-developed and extensively backtested momentum strategy. In 2020, LX programmed this strategy in python and launched several trading bots. Currently, LX has 25 active bots with more than 1.000 followers.
Automated Algorithmic Trading by World Class Algorithms
Mercor takes on a win-win approach that benefits both developers and investors. Not only do the developers benefit by exploiting their unique skills on the Mercor platform — investors can too! Mercor makes algorithmic trading as accessible as it can be. We like to aim for a ‘Click and Invest’ experience for traders. Trading has never been easier: the only move you have to make is to stake your $MRCR tokens. After that, you pick an algorithm to your liking, invest, and the trading begins! You don’t have to worry about when to sell or when to buy — the bot does the work for you.
Are you an investor or a trader with an interest in algorithmic trading? Head over to app.mercor.finance and enjoy world-class algo trading strategies!