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+--- Thread: Profits only in longer duration Candles (/thread-57769.html)
Profits only in longer duration Candles - altamash - 11-19-2018
I am new to crypto bots.
Thank you guys for your contribution towards this forum. It helped me a lot.
Coming to the point.
I manually backtested hundreds of strategies with different time frames for the past 8 months data (I couldn't get the GA to work)
Most of the strategies available built-in or custom (available on GitHub) with default parameters yielded losses in this bear market in one hour or 15 minutes candles.
But if I configure Candle size to 10 hours or more, then strategies like DEMA, MACD, neuralnet return positive results but with only few trades . As 10 hour candle size leads to longer exposure (in days) i feel it implies more risk.
I couldn't find a strategy which would perform in a bear market with smaller candlesize say 5 min or 1 min so gekko can do more frequent low risk/profit trades.
Am I missing anything? Would appreciate any pointers or leads
RE: Profits only in longer duration Candles - deandree - 11-19-2018
Few thoughts:
* Bigger candles = Longer exposure = more risk, but also bigger candles = less noise in data = higher chance to actually predict something and trade with actual statistics on your side, instead of throwing 50/50 chance coin
* Being positive in bear market is difficult, unless you can both long/short
* Bigger coins = less trades = less money spent on comissions = more money for you to keep
* If the strategy brings you money, does it really matter what candle size it uses? Or do you want "lower risk" just because some book says it's "lower risk" because it's "shorter holding period"? Do you understand the math why is is considered lower risk?
RE: Profits only in longer duration Candles - altamash - 11-23-2018
@deandree: thanks for such an insightful answer
RE: Profits only in longer duration Candles - tommiehansen - 11-23-2018
Begin with understanding what usually works on the larger markets (like the general indexes e.g. S&P500 etc).
Generally speaking long SMA's for cryptos work better now that there's a general BEAR trend.
This also is true for longer candles (= longer time periods). This due to the fact that longer candles (longer time...) cuts down on noise.
Noise is the number one problem during longer BEAR-trends and thus cutting it down (by using longer duration candles) will also result in better results.
Do understand that a 15 minute candle is the average of 15 candles and its result(s). 30 min candles is the result of 30 individual candles and their result and so on....