Trend Following and Momentum Strategies on Bitcoin (Crypto) – Capturing the Trend with Free Bitcoin Trading Strategies

This article presents some trend following strategies on Bitcoin. Cryptocurrency markets have many of the characteristics of the commodities markets: Wild swings and gyrations, both up and down, exactly what is needed for trend following and momentum strategies. Does this mean that trend following works in bitcoin?

By using simple moving averages, you manage to beat “buy and hold”/HODL. Trend following strategies work in bitcoin. We test three (and free) profitable bitcoin strategies – both trend following and momentum.

The most important prey in the market for trend followers is movement – either up or down. The upside movement can create enormous returns, but the downside is also substantial. However, even simple strategies can limit the downside, as shown in this article.

Many have a love-or-hate relationship with bitcoin. That, of course, doesn’t make much sense if you want to make money in the markets.

As a trader, you need to be open and flexible and avoid confirmation biases. We own bitcoins, but we don’t have specific bullish or bearish convictions. However, we are careful with cryptocurrencies because they don’t produce any tangibles, which is one of the main drivers of the magic of compounding:

• Is Bitcoin a better investment than stocks?

This article contains no opinions on bitcoin, but we put forward some very simple ideas on how you can potentially trade bitcoin as a short-term strategy. In this article, we test BTC-USD.