Sample Strategy: Price Oscillator

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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