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Bitcoin Trading In Sideways Market
Bitcoin Trading In Sideways Market

The best strategy to trade Bitcoin when it moves sideways with no strong trend swings.

Oleg Giberstein avatar
Written by Oleg Giberstein
Updated over a week ago

Introducing the 'Bitcoin Trading In Sideways Market' Template

Traders wait for strong price movements to make profits. They buy, anticipating price increases, or sell to protect from the risk of dips. The truth is that most of the time, the price moves relatively sideways in no clear direction. What if you could also profit from those conditions without the need for sitting and waiting for breakouts?

Trying to anticipate a strong trend may be profitable but risky at the same time. Higher volatility may generate stress resulting in getting stuck with trades in loss, waiting for the next opportunity.

When volatility is lower and the price moves sideways, you can predict easier the price action and build the best system to fit the market.


How does it work?

After a sharp price move, periods of consolidation follow for a while, and the asset trade sideways. That is the perfect time to trade swings on low volatility.

These are the times when trading manually is more stressful, while automated trading strategies can add significant value.

You can spot when it's more appropriate to start a strategy when the price does not make more higher-highs on the trend. That means the uptrend is weakening, and scalping short term trades on the downside has a good risk-reward.

The strategy

The trading system plans to sell Bitcoin on price increases. You can adjust the percentages based on the frequency of trades you want to achieve. Larger percentages will execute orders less often.

Bear in mind, the idea of this strategy is to trade with low volatility, sharp price increases or drops may invalidate the thesis making the rule temporarily ineffective.

When the price drops, the rule buys back Bitcoin at a lower price when the trend reverts in the short-term.

Note: If Bitcoin is moving on the downside, the percentage for buying back can be slightly higher than the one that triggered the sell order to optimize the results.




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