So I made a test to see how simply following the position of price compared to a 50-day SMA on BTC/USD.
Results: https://imgur.com/a/ZBHMqcq
It appears that this very simple Long-only strategy has consistently beaten Buy & Hold over time, on a Performance/Risk basis.
The rules I used :
- Buy when price is above the 50 SMA.
- Sell when it is below the 50 SMA.
- Position size : 100% of current capital (started with $5000)
Fees are included (0.10% per side).
I tried a lot of different SMA values, are there are multiple clusters of values that beat B&H when just buying or selling depending on the position of price from the SMA.
Curious to get your feedback on this, thanks!
submitted by /u/NormalIncome6941
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