What happens when Bitcoin is up for five consecutive days in a row?
The above table is a backtest of bit-e's daily candles. I used bit-e because it has the longest historical data. The backtest condition is that: bitcoin prices is up 5 days to signal a buy signal. Then, the strategy hold it for X days shown by the Index row (index 0 is 1 day).
The conclusion after bitcoin is up for 5 consecutive days is this: market by probability will pullback/consolidate for 1-3 days. However, the upward momentum is very strong and by the 4th day, the uptrend continues. Look at the result if you hold bitcoin for 5 days, 63% success and gain loss ratio of 5:1. That is fucking godly! Sample size is on the low side, but it shows following the trend and being patient pays.
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