Bitcoin Trading Strategies

Algorithmic Trading Strategies

For Bitcoin And Cryptocurrency
That Work
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Disclaimer
This book is not to be used as financial advice.
All the material contained in this book is provided for informational
purposes only. The author does not guarantee any results from the use of
this information.
No responsibility can be taken for any results or outcomes resulting from
the use of this material.
While every attempt has been made to provide information that is both
accurate and effective, the author does not assume any responsibility for the
accuracy or use/misuse of this information.
Table of Contents
Introduction
Chapter 1: Scalping and Day Trading Strategies For Bitcoin
What is the difference between day trading and scalping?
Double Bolinger Band Scalping System
RSI Bolinger Band Trading System
CCI Scalping Strategy
Double Stochastic Bolinger Band Trading Strategy
RSI Crossover Strategy
EMA CMF Crossover Strategy
RSI Keltner Channel Scalping Strategy
Stochastics EMA Crossover Strategy
Bolinger Bands + SMMA Crossover Scalping System
Chapter 2: Bitcoin Trend and Swing Trading Strategies
RSI and Stochastic Trend Trading Strategy
Stochastics and MFI Swing Trading Strategy
WMA Stochastics Swing Trading System
12 Hour Stochastics Strategy *Top Swing Trading Strategy*
WMA Crossover Swing Trading Strategy
Keltner Channel and RSI Trend Trading System
Chapter 3: Using Market Sentiment For Trading
What is Market Sentiment?
Watch For Market Sentiment To Diverge From The Market Trend
How to Find Market Sentiment
WhaleAlert For Predicting Large Price Movements
Introduction
These bitcoin trading strategies are based on using indicators and are
algorithmic/mechanically focused strategies that use specific rules and
indicator settings for all trades.

The Advantage of Using Mechanical/Algorithmic Trading

Strategies:

Heavily ruled based and uses specific entry, exit and stop
loss points for every trade
Easier to remove emotion from trading
These strategies can easily be coded into a bot that will
trade for you
Algorithmic strategies are easy to back test and modify
to improve performance

These strategies are from my personal collection that I have found

to be very profitable. I have also made sure to include easy to
follow instructions on all these bitcoin trading strategies, good
luck!
Chapter 1: Scalping and Day Trading Strategies
For Bitcoin
What is the difference between day trading and scalping?
Scalping:

Scalping refers to very quick trades that a trader will take and
typically only be in for a few minutes.
Scalping is very fast paced, and multiple scalping trades can be
made in an hour depending on the strategy
Scalping trades normally use very low time frame carts (1-5
minute)
It is recommended to use a tight stop loss when scalping.
Day Trading:

Day trading refers to making multiple trades intraday, these

trades can take anywhere from 20 minutes to hours.
Day trades will always be closed in the same day
Traders often use timeframes such as the 15 minute – 1 hour
timeframe charts for making trades
Double Bolinger Band Scalping System

Recommended Timeframe:

1 minute or 5 minute

Required Indicators:
RSI with a length of 14 (default settings)
Bolinger band #1 settings:

Length = 50, stDev = 1

Hide the basis/middle line (basis line not needed for this
strategy)
Note: This is the slower bolinger band in the directions

Bolinger band #2 settings:

Length 20, stDev = 1

Hide the basis/middle line (basis line not needed for this
strategy)
Note: This is the faster bolinger band in the directions

Enter Long/Buy Trade When:

RSI is above the level 50

A candle closes above the top of the faster bolinger band
Enter a long when a candle then closes above the top of the
slower bolinger band, and price is above the top of both bands
Place a stop loss under the low of the entry candle
Example of a long trade using this strategy

Exit Long Trade When:

A candle closes below the top band of the fast bolinger band

Enter Short/Sell Trade When:

RSI is below the level 50

A candle closes below the bottom of the faster bolinger band
Enter a short when a candle then closes below the bottom of the
slower bolinger band, and price is below both bands
Place a stop loss above the high of the entry candle
Example of a short trade using this strategy

Exit Short Trade When:

Price closes inside the bottom of the faster bolinger band

RSI Bolinger Band Trading System

Recommended Timeframe:

1 hour timeframe (strategy will work on all timeframes)

Required Indicators:
21 EMA
RSI with a length of 14

Add bolinger bands on the RSI

Bolinger band RSI settings:

Length = 30
Stdev = 0.5

Bolinger bands added on the RSI

Enter Long/Buy Trade When:

The RSI line crosses above the top of the bolinger bands
Enter a long trade when a candle closes above the 21 EMA
Set a stop loss under the low of the entry candle
Green circles represent buy signals

Exit/Take Profit on Long Trade When:

A candle closes below the 21 EMA
Or
The RSI crosses below the bottom of the bolinger bands

Enter Short/Sell Trade When:

The RSI line crosses below the bottom of the bolinger bands
Enter a short trade when a candle closes below the 21 EMA
Set a stop loss above the high of the entry candle
The red circle represents sell signals

Exit/Take Profit on Short Trade When:

A candle closes above the 21 EMA
Or
The RSI crosses above the top of the bolinger bands
CCI Scalping Strategy

Recommended Timeframe:

5 minute

Required Indicators
CCI (commodity channel index) set to a length of 20
20 WMA (weighted moving average)

Enter Long/Buy Trade When:

Price is closing above the 20 wma and the CCI is below -100
Enter long trade when the CCI crosses above -100
Set a stop loss under the 20 wma
Double Stochastic Bolinger Band Trading Strategy

Recommended Timeframe:

4 hour or lower

Required Indicators:
Stochastics with settings:

%K = 21, %D = 4, Smooth = 10
Stochastics RSI – use default settings
Bolinger bands with settings:

Length = 20, StdDev = 1

Enter Long/Buy Trade When:

Price is under the bolinger bands, with candles outside the
bottom Bollinger band
The stochastic RSI is below 20 and the regular stochastic is
below 50 and crossed up
Enter long trade when the stochastics RSI crosses up and is
crossing above 20
Set a stop loss under the low of the entry candle
Example of a long entry, the green circles represent buy signals of this
strategy
Exit/Take Profit on Long When:
Stochastic RSI goes above 80
Or

Take profits when candles touch the top bolinger band

Enter Short/Sell Trade When:

Price is above the bolinger bands, with candles outside the top
Bollinger band
The stochastic RSI is above 80 and the regular stochastics is
above 50 and crossed down
 Enter long trade when the stochastics RSI crosses down and
crossing under 80
Set a stop loss under the low of the entry candle

Example of a short trade, the red circles represent sell signals of this
strategy

Exit/Take Profit on Short When:

Stochastic RSI goes below 20
Or

Take profits when candles touch the bottom bolinger band

RSI Crossover Strategy
Recommended Timeframe:

1 hour timeframe

Required Indicators:
20 EMA
RSI with a length of 14

Add a 8 EMA and 26 EMA on the RSI

The RSI with a 8 EMA and 26 EMA added on it

For Long/Buy Entry:

The 8 EMA crosses above the 26 EMA on the RSI
Enter a long trade when a candle above the 20 EMA
Set a stop loss under the low of the entry candle
Example of a long entry, the green circle represents a buy signal
Note: You hide the RSI by unchecking the RSI box in the settings to make
it easier to see the EMA crossover
Exit/Take Profit on Long Trade When:

A candle closes below the 20 EMA

For Short/Sell Entry:
The 8 EMA crosses below the 26 EMA on the RSI
Enter a short trade when a candle closes below the 20 EMA
Set a stop loss above the high of the entry candle

The red circles represent sell signals of this strategy

Exit/Take Profit on Short Trade When:

A candle closes above the 20 EMA
EMA CMF Crossover Strategy

Recommended Timeframe:

30 minute timeframe, will work on all timeframes

Required Indicators:

12 EMA
35 EMA
CMF (Chaikin Money Flow) with default settings

Buy/Long Entry:
The 12 EMA crosses above the 35 EMA, and the CMF crosses above the
zero level

Example of a long entry using this strategy

Exit long/buy trade:

When a candle closes below the 35 EMA

Sell/Short Entry:
The 12 EMA crosses below the 35 EMA and the CMF crosses below the
zero level
Example of short trade entry
Exit short/sell trade:

When a candle closes above the 35 EMA.

RSI Keltner Channel Scalping Strategy

Recommended Timeframe :

1 to 30 minute timeframe

Required Indicators:
Keltner Channel with settings:

Length = 20, Multiplier = 1.5

RSI - set with length of 5 or 3

Enter Long/Buy Trade When:

Price is below the bottom of the lower band of the keltner

channel
Enter a long trade if bullish divergence is visible on the RSI
Set a stop loss under the low of the entry candle
Note : Bullish divergence is when the RSI makes a higher low but price
made a lower low on a closing candle
Example of a long trade entry

Exit or Take Profit on Long Trade When:

Price reaches the top of the keltner channels

Bearish divergence is visible on the RSI
Or

You can take profits if the RSI is overbought

Enter a Short Trade When:

Price is outside the top of the keltner channel

Enter a short trade if bearish divergence is visible on the RSI
Set a stop loss above the high of the entry candle
Note: Bearish divergence is when the RSI makes a lower high but price
made a higher high on a closing candle

Example of a short trade entry

Exit/Take Profit on Short Trade When:

Price reaches the bottom of the keltner channel

Bullish divergence is visible on the RSI
Or

The RSI is oversold

Stochastics EMA Crossover Strategy

Recommended Timeframe:

15 minute -4 hour (strategy will work on any timeframe)

Required Indicators:
10 EMA and 5 EMA
Stochastics with setting:

%K = 14, %D = 3, Smooth = 6
RSI set to a length of 14

For Buy/Long Entry:

Wait for the stochastics to cross up while below 50, and the RSI
is above the 50 level.
Enter a long trade when the 5 EMA crosses above 10 EMA
Set a trailing stop loss below the 10 EMA
Example of a long entry, the green circles represent buy signals

Exit/Take Profits on Long Trade When:

The 5 EMA crosses below 10 EMA
For Sell/Short Entry:
Wait for the stochastics to cross down while above the 50 level,
and the RSI is below its 50 level
When the 5 EMA crosses below the 10 EMA enter a short trade
Set a trailing stop loss above the 10 EMA

Example of a short trade

Exit/Take Profits on Short Trade When :

The 5 EMA crosses above the 10 EMA
Bolinger Bands + SMMA Crossover Scalping System

Recommended Time Frame :

5 minute – 1 h0ur, strategy will work on any timeframe

Required Indicators
3 SMMA (smooth moving average)
5 SMMA
Bolinger bands with settings:

Length = 20, stdev = 0.8

For Buy/Long Entry:

3 SMMA crosses above 5 SMMA
Enter long trade when a candle closes above the top bolinger
bad
You can set a stop loss under the 5 SMMA or the top bolinger
band
Buy signal on green arrow and exit on red arrow using this strategy

Exit Long When :

Price closes below the 5 SMMA

Or

A candle closes inside the bolinger bands under the top bolinger
band
For Sell/Short Entry:

3 SMMA crosses below 5 SMMA

Enter short trade when a candle closes below the bottom
bolinger bad
You can set a stop loss above the 5 SMMA or the bottom
bolinger band

Example of a short trade

Exit Short When :

Price closes above the 5 SMMA

Or

A candle closes inside the bolinger bands above the bottom

bolinger band
Chapter 2: Bitcoin Trend and Swing Trading
Strategies
RSI and Stochastic Trend Trading Strategy

Recommended Timeframe:

4 hour timeframe

Required Indicators
150 EMA
34 EMA
Stochastics with settings

%K = 8, %D = 3, Smooth = 3
RSI set to a length of 3

Buy/Long Entry:
Price is above the 34 and 150 EMA, the 34 EMA should be
above the 150 EMA
The 34 EMA should be sloping upward.
The RSI drops below 20 and the stochastics below 50.
Enter long trade when the stochastics cross up while below 50
and the RSI is below 20
Set a stop loss under the low of the entry candle
Circles represent buy signals for this strategy

Exit/Take Profit on Long When:

If a candle closes below the 34 EMA

Sell/Short:

Price is below the 150 EMA and 34 EMA, the 34 EMA should
be below the 150 EMA
The 34 EMA should also be sloping downward.
RSI rises above 80 and the stochastics above 50.
Enter short when the stochastics cross down, while the RSI is
above 80
Set stop loss above the high of the entry candle
Example of a short trade, circles represent sell signals for this strategy

Exit/Take Profit on Short Trade When:

a candle closes above the 34 EMA

Stochastics and MFI Swing Trading Strategy

Recommended Timeframe:

4 hour timeframe

Required Indicators:
20 EMA
MFI set to 14
Stochastics with the settings:

K = 55, D = 14, Smooth = 12

Buy/Long Entry:
The MFI rises above the 50 level, while the stochastics are
below 50 and crossed upwards.
Enter a long trade when price closes above the 20 EMA
Example of a long entry

Exit Long When:

A candle closes below the 20 EMA
Sell/Short Entry:
Wait for the MFI to be below the 50 level, while the stochastics
are crossed down above 50.
Enter a short trade when price closes below the 20 EMA

Exit Short Trade When:

A candle closes above the 20 EMA

WMA Stochastics Swing Trading System

Required Indicators:
45 WMA(Weighted moving average)
9 EMA
Stochastics with settings:
%K = 155, %D = 32, Smooth = 32

For Long/Buy Trade:

When the stochastics %K line crosses above the %D line while

below the 20 level (oversold)
The 9 EMA then crosses above the 45 WMA while price is
above both moving averages, enter a buy/long trade

Exit/Take Profit on Long When:

 The 9 EMA crosses below the 45 WMA
Or

The stochastics are over 80 (overbought)

Note : You can also use the 45 WMA as a trailing stop loss, exiting if price
close below it
For Short/Sell Trade:

The %K line crosses below the %D line while over 80

The 9 EMA then crosses below the 45 WMA while price is
below both moving averages, enter a short trade

Exit/Take Profit on Short Trade When:

The 9 EMA crosses above the 45 WMA

Or

The stochastics are below 80 (oversold)

Note: You can use the 45 WMA as a trailing stop loss, exiting if price
closes below it
12 Hour Stochastics Strategy *Top Swing Trading Strategy*

Recommended Timeframe:

12 hour

Required Indicators
3 smoothed moving average (SMMA)
6 smoothed moving average
Stochastics with settings:

%K = 14, %D = 3, Smooth = 6

Enter Long/Buy Trade When:

The stochastics are below 50 and cross up

Enter long when the 3 SMMA crosses above the 6 SMMA and
price is above both moving averages
Place a stop loss below the 6 SMMA, you can use it as a
trailing stop loss
Example of a long entry

Exit/Take Profit When:

3 SMMA crosses below the 6 SMMA

Enter Short/Sell Trade When:

The stochastics are above 50 and cross down

Enter long when the 3 SMMA crosses below the 6 SMMA and
price is below both moving averages
Place a stop loss above the 6 SMMA, you can use it as a trailing
stop loss
Example of a short trade

Exit/Take Profit When:

3 SMMA crosses above the 6 SMMA

WMA Crossover Swing Trading Strategy

Recommended Timeframe:

1 hour – 4 hour timeframes (tested the best on 1 hr timeframe)

Required Indicators
40 WMA
60 WMA
210 WMA
Note: WMA is weighted moving average

Enter Buy/Long Trade When:

Price is above all moving averages

The 210 WMA is slopped upward
The 40 WMA is above the 60 WMA
Enter long trade when 60 WMA crosses above the 210 WMA
Set stop loss below the 210 WMA or the 40 WMA depending
on the risk/reward
Example of a long trade using this strategy

Exit Long Trade When:

Exit trade when price closes below the 210 or 40 WMA
Enter Sell/Short Trade When:

Price is below all moving averages

The 210 WMA is slopped downward
The 40 WMA is below the 60 WMA
Enter long trade when 60 WMA crosses below the 210 WMA
Set stop loss above the 210 WMA or the 40 WMA depending
on the risk/reward

Example of a short trade

Exit Short Trade When:

Exit trade when price closes below the 210 or 40 WMA

Keltner Channel and RSI Trend Trading System

Recommended Timeframe:

2 hour, strategy will work on all timeframes

Required Indicators:

RSI set to a length of 35

place a horizontal line in the middle of the RSI at the 50 level

Keltner channels, with the settings:

Length = 40, Multiplier = 0.5

Keltner channel settings
Buy/Long Entry:

The RSI crosses above 50

Enter a long trade after the first candle that closes above top
band of the Keltner channel,
Set a stop loss under the low of the first candle that close above
the KC
You can also enter a long trade when price touches or tests back
into the Keltner channel if the RSI remains above 50

Example of a long trade

Exit/Take Profits on Long When:

A candle closes below the bottom band of the Keltner channel

Or

The RSI drops below 50

Sell/Short Entry :

The RSI crosses below 50

Enter a short trade after the first candle that closes below the
bottom band of the Keltner channel
Set a stop loss above the first candle that closes below the KC
You can also enter a short trade when price touches or tests
back into the Keltner channel if the RSI remains below 50

Example of a short trade

Exit/Take Profits on Short When:

A candle closes above the top band of the Keltner channel

Or

The RSI rises above 50

Chapter 3: Using Market Sentiment For Trading

What is Market Sentiment?

Market sentiment is simply what the majority of the market participants
(traders) are expecting. We can measure the market sentiment by looking at
how many traders are long vs short on certain exchanges. If most traders are
long then the market sentiment is bullish.
We know most traders lose money, if most traders are short and expecting a
price drop, the opposite may be more likely to happen and price will rise.
Trading market sentiment is not this simple however; you want to look at
the market trend when trading sentiment.

Watch For Market Sentiment To Diverge From The Market

Trend
The best signals for trading market sentiment is when the market trend is
the opposite of market sentiment.
For example:

If the market is in a uptrend on the daily timeframe and most

traders are short, this is a signal price may continue moving
higher soon
How to Find Market Sentiment
Many major cryptocurrency exchanges will show exactly how many traders
are long vs short. Binance – one of the largest exchanges is great for
looking at traders sentiment and the long vs short ration.

You can find data on Binance market sentiment here

Click on the “Trading Data” tab to see the long vs short ratios on Binance

Binance not only provides data on the long vs short ratio, but also show the
long vs short ratio for the top traders on Binance.
This is useful to look at especially if the top traders are entering longs and
the general long vs short ratio is decreasing.
Total long vs short ratio is the top graph, the bottom graph represents the
top traders long vs short ratio

WhaleAlert For Predicting Large Price Movements

WhaleAlert is a twitter account that displays all of the large crypto currency
transaction throughout the day.

You can find WhaleAlert at this address

WhaleAlert will display any large cryptocurrency transactions, and show

which wallets or exchanges the transaction was sent to.
If a wallet transfers 1000 bitcoins to an exchange for example, this
transaction will be displayed on WhaleAlert.

When a large amount of bitcoins (500+) are transferred to an

exchange this is a warning a drop may occur
If you see a large amount of USDT (10,000,000+) or other
stable coins being sent to exchanges this is a sign that price may
rise soon