Let's start off by creating a simple Price Oscillator that takes actions based on certain price movements
Hypothesis:
All assets keep oscillating between different price ranges from time to time. As a result, we can create a strategy that waits for the price to drop to buy and then sells when the price goes up again.
Strategy:
- Buy when: Price drops by 2%
- Sell When: Price increases by 10%
Creating the strategy on Mudrex:
- Components: To make this strategy all we need is 2 price blocks, one each for buy and sell. Below is how the price blocks would look like.
- We will add a take profit and a stop loss to capture profits
- Final strategy visual: We would then go out and connect the price blocks with the buy and sell blocks to complete our strategy.
Testing the strategy
Running on LTC/BTC -1H period from 1st Jan to 1st June gives a + 25.61% ROI
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