Algorithmic Trading Strategy Backtest: ROSEUSDT on KUCOIN Spot and Futures

"These are the results of tests for a strategy that I propose to the community to foster a discussion for mutual benefit and learning. The strategy focuses on algorithmic trading in the ROSEUSDT pair on the KUCOINLINEAR platform, using technical indicators and specific conditions for opening and closing trades.

The strategy configuration includes the use of various indicators such as Average True Range (ATR), Williams %R, SuperTrend, RSI, and criteria for trade management such as take profit and stop loss based on these indicators. The goal is to identify trading opportunities through the crossing of predefined technical conditions, thus optimizing decision-making for buying and selling.

I invite the community to analyze these results and share their opinions and suggestions to refine this strategy. The exchange of ideas and collaborative feedback will help us all improve our skills and approaches in trading."

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Thanks for sharing!

I’ve tried the strategy with other coins, but it doesn’t perform as well. I always avoid using strategies that work well in just one pair because you don’t know how much was due to the strategy and how much was due to the price action of that coin during that period. Many strategies seem profitable for one pair, but chances are the result will be different going forward. It’s called survivor bias. Also, the sample size is small due to not trading often. That’s why I prefer to use strategies that work across many coins and start at least a trade every few days. I wrote about some common backtesting problems here: Common Backtesting Problems and Solutions

You can always test it in paper for a couple of months and see how it does with live market prices.

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You are right the coins selection shouldn’t be count into the strategy logic unless the strategy is built around a specific pair - BTC won’t perform as PEPE for example so the same profitable strategy could have completely different outcomes.

There are strategies which work with any coin but again some coins perform better than other.

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Yes you are right some strategies are very coin specific , some will work well with coins with high volume and some with low vlomune very volatile coins. When we say there is no perfect strategy, which basically means there is no perfect strategy for all coins. Some coins are at their ATH and opening a long bot with these coins can be disastrous, so coin selection is the key :key:

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In my opinion, after analyzing the backtests, that strategy was started with a group of more common pairs like BTC, BNB, ETH, SOL/USDT, and others more volatile like MATIC, ROSE, JASMY, which have had different performances in this period of time with ups, downs, and sideways periods, etc. If we analyze over a longer period, on KuCoin, there are pairs that don’t have available information. I can’t test on Binance because I live in Canada and haven’t been able to trade there for over a year; there’s no other option left. Also, changing exchanges and testing periods tremendously influences the results of long-term tested strategies, like the one SANCHEZ presents in his video with good results, on KuCoin However, in the periods from January until now, the results are very poor, and it seems there’s missing pair information on KuCoin, resulting in very few trades and very low profitability compared to what appears in the video.

Then I tested the strategy with individual pairs, adjusting indicators like ATH (All-Time High) and ATR (Average True Range) individually. The results vary from one pair to another, as is logical, but it’s true that it’s not a one-size-fits-all strategy; it needs to be fine-tuned for each pair according to its volatility. There’s also the risk of getting stuck waiting for a profit if it operates near a local ATH, which forces me to use stop-loss orders to continue the operation.

I don’t think it’s a perfect strategy; it’s a draft to explore the results of ATH and ATR filters, which I find very useful. However, I would like to comment that if they were relative and not absolute, they would be more applicable for many pairs together. For instance, if we express volatility or ATH proximity in percentages, it would be applicable in a bot for several currencies at once.But those parameters can be better adjusted in individual currency strategies

thaks
pepe

I have a problem with volume in exchange , Kucoin is not BINANCE, i live in canada and binace is baned :wink:
thanks
pepe

Yes, sometimes a strategy in one pair and exchange will have completely different results from the same pair in another exchange, we’ve seen that happening.

For the ATH indicator, it can be used in multicoin because it works as % drop from ATH.