Catching Crypto Trends; A Tactical Approach for Bitcoin and Altcoins
This study adapts trend-following strategies—rooted in traditional finance—to cryptocurrencies, using Donchian channel ensembles and volatility-based sizing. Applied to a rotational portfolio of top coins, the strategy delivers strong risk-adjusted returns, outperforming Bitcoin with notable alpha. It also addresses transaction costs and explores integration with traditional asset strategies, offering practical on- and off-chain implementation paths.