Ethereum is a market with large upside price potential but with great risk. It should be treated as speculative investment. From 2017 to 2018 Ethereum’s price rose from $10 to $1400, a 13000% move. The following year the price declined from the $1400 peak to just $89. This type of market is best traded with no emotions but rules and discipline.

The strategy looks for a bullish move to enter. In other words, if Ethereum rises, the strategy will participate. It the prices continue climbing, it holds and rides the wave up. If, on the other hand, the market shows weakness, it exits and waits for a better move. History shows that this type of momentum works in this particular market.

This is a medium to long term strategy and uses daily signals. Depending on the market, It may trade 2 or 3 time in one week or it may trade once in two months.

Holding on to Ethereum is very risky. Decentrilized finance is a great innovation but if you are unsure and feel there is a chance that Ethereum ends up ‘not working out’ (i.e. slowly going to zero) or being replaced or overtaken by another project, this strategy will get you out and into cash long before that.

Holding Ethereum has a historical drawdown of more than 90%. The strategy has a theoretical backtested historical drawdown of -49%. This is still large but survivable.

Backtested results are here.

For custom solutions (ie, leveraged version or large trade execution) please contact us directly.