TradeIQ
Learn about a highly customizable automated trading strategy for Bitcoin and Ethereum that generates high returns and works in all time frames. The algorithm includes technical indicators like the Kirill Channel, RSI, and volume oscillator. The strategy is highly customizable and can be tweaked to produce results for different time frames. Consider signing up for Trader Edge, a backtesting app that can help you increase your trading skills. The script for this trading strategy is not available in the video, but the link will be shared if the video gets 20K views and 2K likes.
Maximizing Returns on Bitcoin and Ethereum: A Customizable Trading Algorithm
Introduction
Are you tired of manually trading? Do you want to maximize your returns on bitcoin and ethereum? Look no further than this automated trading strategy, which I coded using ChatGPT! Not only is it highly customizable, but it also works in all time frames. In this article, I will explain the logic behind the strategy and the indicators used to build it. I will also share the best strategy settings for each time frame, so be sure to read until the end!
The Kirill Channel Indicator
The algorithm includes three technical indicators, the first of which is the Kirill Channel. Created by Gesanov Kiril, this technical analysis tool provides traders with dynamic support and resistance levels to help identify potential entry and exit points in the market. The indicator is based on the concept of volatility channels and includes multiple channel lines that adjust to market conditions.
The Kirill Channel consists of several components – Border Top 1 and Border Bottom 1 represent the primary support and resistance levels, and they are calculated by adding and subtracting a multiple of the average true range (ATR) from the central line. The central line is the second component of the indicator and is the average price of the asset over a specific period. It serves as a reference point for the Border Lines and helps traders identify the overall trend direction.
The third and fourth components are Border Top 2/3 and Border Bottom 2/3, representing secondary support and resistance levels. These lines are calculated similarly to the primary Border Lines but use a larger multiplier of the ATR. They provide additional confirmation for trade signals or serve as potential take profit targets.
The Kirill Channel is designed to adapt to changing market conditions by adjusting the channel’s width based on the asset’s volatility. Its dynamic nature makes it useful for identifying potential trend reversals and breakouts while managing risk and trades simultaneously.
Algorithm Entry and Exit Strategies
The algorithm uses the Kirill Channel for trade entries and exits. A Buy Signal is generated when the price crosses and closes below the Border Top 1 line. The logic is simple – we first wait for the price to move sharply to the upside. This leads to the price breaking above the Border Top 1 and potentially the Border Top 2 and 3. Such a sharp move creates an imbalance in the market, which results in a price correction in the future. Market participants take the price down to fill the liquidity gap, and this is where we buy. We enter the market when a long trend has already been established, and we expect the price to continue moving up.
Exactly the opposite is true for a sell entry. The logic is quite simple; however, we need to add a couple of other indicators to filter out as many fake signals as possible. The two indicators we will use are the Relative Strength Index (RSI) and the Volume Oscillator.
The RSI will be a secondary confirmation indicator that will confirm the signals given by the Kirill Channel. For example, a Buy Signal would be valid only if it occurred at the same time the RSI was oversold. If the RSI is in the neutral zone, a trade cannot be taken. This condition will ensure that we enter the market when the likelihood of a price reversal is high.
We will use the Volume Oscillator to make sure that there is sufficient volume in the market when we initiate the trade. The optimal volume is present when the reading is above zero percent. This is a simple yet effective volume filter.
Customizing the Algorithm
The algorithm is highly customizable, and that’s why it’s so effective. When you first open the properties, change the initial capital and the order size. Then, open the inputs and change some parameters. We ran tests on different time frames, and the results were impressive for each one.
For a daily chart, the default settings for the ChatGPT Crypto Strategy give a win ratio of 54.17%, with a net profit of 30.76%. After customizing the settings, the win ratio increases to 60%, and the net profit increases to 306%.
For a 4-hour chart, the optimized settings still work perfectly well, with a win ratio of 60% and a net profit of 306%.
On a 3-hour time frame, the win ratio is slightly lower, but we can improve it. Just by changing the parameters, we can increase the win ratio to 73.33%, with a maximum drawdown of 10% and a net profit of 62%.
On a 2-hour time frame, the win rate is not too bad, but the net profit could be better. Again, we tweak some parameters to optimize the trading strategy. The win ratio drops to 60%, but the net profit and maximal drawdown are now decent.
For a 1-hour time frame, the win ratio is initially quite bad, but we can fix that as well. Customizes settings results in a win ratio of 72.73%, with a maximal drawdown of 10.47%, and a net profit of 64.43%.
On a 45-minute time frame, the settings produce excellent results, with a win ratio of 75.47%, a maximum drawdown of 6.61%, and a net profit of 38.47%.
Lastly, on a 15-minute time frame, the customized settings deliver a win ratio of 60%, a maximal drawdown of 5.65%, and a net profit of 36%.
Conclusion
In conclusion, ChatGPT’s crypto strategy is an automated trading algorithm that generates high returns on Bitcoin and ethereum. It is highly customizable and works in all time frames. The algorithm uses the Kirill Channel for trade entries and exits with confirmation provided by the RSI and the Volume Oscillator. By tweaking some parameters, you can customize the strategy to different time frames and create winning trades. So drop that like and share the video with your friends to help it reach 20K views and 2K likes, and I’ll be sure to share the link to this profitable trading algorithm.
