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btc_investment_decision_indicator's Introduction

Bitcoin Trading Indicator for Informed Investment Decisions

Advanced Bitcoin indicator for strategic investment decisions, delivering consistent returns while minimizing drawdown risk.

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Introduction

This repository offers a comprehensive investment strategy for Bitcoin (BTC) based on combining multiple technical indicators. By leveraging a combination of technical indicators, investors can make more informed decisions regarding entry and exit points in the BTC market. This has led to consistent returns with minimal risk. The aim of this implementation is to provide a holistic approach to BTC investments, considering both trend direction and momentum signals.

Cumulative Return with Minimal Drawdown Risk

This implementation is designed to help achieve a cumulative return with minimal drawdown risk. By combining multiple indicators and considering additional factors such as the DXY Index and Golden Cross, investors can better navigate the volatile BTC market while aiming for consistent returns.

Example Output

The example output showcases market behavior from August 2022 to March 2024, demonstrating precise market entries and capitalizing on buy and sell opportunities. By leveraging these indicators, it achieved a cumulative return of ~102%. Gray vertical bars indicate entry and exit time-positions, whereby red dots are sell points and blue dots are buying points.

Example Output

Performance

This script has demonstrated strong performance over the past four years, accurately identifying both the top and bottom of trends in the Bitcoin market, thereby avoiding 713 days of continuous market downtrend. This has resulted in an impressive 1239% return.

Example Output

Some indicators included in this implementation

  • Squeeze Momentum Indicator: Identifies the beginning and end of trends by combining Bollinger Bands and Keltner Channels.
  • Moving Average Divergence Convergence (MACD): Helps determine trend directions through the crossing of short-term and long-term moving averages.
  • Relative Strength Index (RSI): Evaluates overbought or oversold conditions in BTC's price, providing insights into potential reversal points.
  • Smooth Momentum: A smoothed version of momentum indicator to provide clearer signals.

Usage Note

This script was developed solely for personal investment decision-making. If you're interested in utilizing it for your own purposes, feel free to get in touch.

Contributors

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