Optimal buying and selling strategy?

Update: Financial Yield Cryptotrader 2024
February 16, 2025

Because we received a lot of questions about what exactly is the optimal buying and selling strategy, we recently performed many simulations on historical data and compared them with the actual yields we are now achieving with Cryptotrader. The simulations show that you can make a higher yield with an adjusted buying and selling strategy.

Yields

  2024 2023 2022 2021 2020 2019
Actually 44.5% 6.5% 7.1% 51.4% 23.6% 25.9%
Optimal* 63.5% (A) 75.3% (A) 7.8% (C) 93.5% (A) 97.3% (A) 108.8% (A)

* Simulation with optimal strategy. Buying strategy:
(A)=Aggressive, (C)=Cautious. Selling strategy: start=5, end=1, period=4

Actual Yields

The actual yields are the yields achieved by existing Cryptotrader users. The yields are based on averages. The yields of each individual user depends on the price trend, the entry point, the invested amount and the chosen buying and selling strategy. With a larger invested amount, you can buy more pockets in a deep dip and achieve a higher return. This is also one of the reasons why we advise to start with a minimum deposit of $1000.

Simulations

In the simulations, we used historical 5-minute data from Bitstamp BTC-USD. During the simulation, we applied exactly the same MACD strategy as the trader is using now. We assumed that the user starts on January 1 of each year and then look at what the yield is at the end of the year. The starting deposit is $1000. In total, we performed more than 8000 different simulations with all variants of purchase and sale strategies in the different years.

Conclusion

Especially adjusting the purchase strategy from Cautious -> Aggressive has a major effect on the annual yield. In the years 2019, 2020, 2021, 2023 and 2024 you will achieve a significantly higher yield with this. Only in the year 2022 (bear market) did the Cautious purchase strategy have a better yield. The sales strategy also has an influence but much less. From the many simulations it appears that the sales strategy: start=5, end=1, period=4 gives an optimal result for most years.

You can set your own trader’s buying and selling strategy via the “Settings” screen

To save the new settings, you must click on both the “Save” button at “Buy Strategy” and at “Sell Strategy”.