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.
The Power Of Price Action Reading
This study evaluates the effectiveness of technical analysis in trading, particularly in how it enhances the performance of a simple automatic trading strategy. We simulate a trading environment where a skilled technical trader guides the strategy to focus on stocks with promising charts, especially those with significant overnight gaps. The trader also micromanages open positions by analyzing daily and intraday price actions. The findings indicate that skilled discretionary technical trading can significantly improve trading outcomes, providing empirical support for combining systematic and discretionary approaches in financial markets.