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Best Day of the Week to Trade Crypto? The Results May Surprise You

Best Day of the Week to Trade Crypto? The Results May Surprise You

I like to think there is at least a little bit of a trader in all of us, especially with Bitcoin’s recent resurgence above USD 8,000. After all, that’s why many of us read CryptoDaily and why the headline of this article may have brought you here in the first place.

I’ve been dabbling with developing trading strategies in other asset classes (like spot forex and shares) over the past 15 years and have not had too much success (yet) trying to adapt to the 7-day trading week in the cryptocurrency markets. Blockchains don’t take weekends or holidays off, but I do because I have other things going on outside of crypto.

Like learning the ukulele! My significant other and I recently visited a Pacific Ocean hideaway and I did nothing but body surf, watch her imbibe fruity libations with little pink umbrellas, and watch very talented Polynesians play the ukulele on moonlit-strewn beaches. I became hooked fast.

Upon returning to the real world I contacted my CryptoDaily colleague, Sally Ho, and asked her for some tips on how to tackle a curiosity: which weekday is optimal for trading cryptocurrencies, and which should I avoid like the plague?

Sally was naturally very accommodating. I have to admit that I learn a lot by reading her columns, and she helped me organize some historical data for a few crypto pairs. Thank you, Sally!

I put together an automated trading strategy that attempted to evaluate profitability for Mondays through Fridays. With Sally’s help, I aggregated more than 15 months of historical data that I could apply some trading code to.

My simple automated trading strategy was written to enter a new long position with a Buy Stop at the highest high over the “x” number of last bars. Likewise, the strategy was written to enter a new short position with a Sell Stop at the lowest low over the “x” number of last bars. It’s a simple reversal trading strategy I wrote just to see if I could reach any conclusions.

I applied my strategy with 3 different time horizons: looking back 3 bars; looking back 5 bars; and looking back 9 bars. I applied this trading system strategy to the four markets that Sally covers in her technical analysis: Bitcoin/ US dollar (BTC/USD); Ethereum. US dollar (ETH/USD); Litecoin/ US dollar (LTC/USD), and Bitcoin Cash/ US dollar (BCH/USD).

I followed her lead here because they are among the most liquid cryptocurrency pairs in the market, and she has a lot of experience trading them, so she knows from whence she trades.

Here are the results:

Let’s start with the bad news. Mondays are not our favourite day of the week for many things in life, and Mondays are not kind to crypto, either. When 3-day lookbacks were applied, Mondays were the worst performer, at -861.76 with BTC/USD representing -619.98 of that total. In contrast, Fridays were the best performer at +2637.96 with BTC/USD’s gains at +1662.87. Tuesdays and Wednesdays also had strong showings.

With a 5-day lookback, the results were better on Mondays, up a cumulative 731.67. Fridays ruled the roost, up 1315.46. Tuesdays were strong at +953.25 and Wednesdays were decent at +724.16.

With a 9-day lookback, the results were again crappy for Mondays, down a cumulative -866.90. Results were strongest on Wednesdays at +2056.36 and the next strongest were Fridays coming in at a cumulative +821.11. Tuesdays were again decent at +300.94.

Here’s the total tally across all four markets with more than 1 year of historical data:

Mondays: -996.99
Tuesdays: +3074.10
Wednesdays: +4106.80
Thursdays: +596.84
Fridays: +4774.53

Here are some basic conclusions:

  1. My trading strategy was written to enter new positions only Mondays through Fridays, reflecting the fact that I cannot be glued to my computer on Saturdays and Sundays, not to mention my girlfriend and ukulele lessons. Had I written my system to enter new positions over the weekends, the results would have been different, but that’s just not my life at the moment.
  2. Mondays are really not a good day to be trading crypto – at least with this simple trading strategy.
  3. Fridays are absolutely the best day to be trading crypto – at least with this simple trading strategy.
  4. There’s some good profit potential around the middle of the week in crypto, with Tuesdays and Wednesdays exhibiting strong results – at least with this simple trading strategy.
  5. Thursdays generally don’t yield earth-shattering results, either. That’s good to know, because I can schedule mid-week ukulele lessons on Thursday mornings, or earn some brownie points by scheduling Netflix on Wednesday nights with my partner.
  6. Of course, these results will be different as I test different types of trading strategies. I applied a relatively simple one to satisfy my curiosity. There may be hope for Mondays with other trading strategies.
  7. I was careful to avoid curve fitting, because over-optimising trading strategies using historical data usually results in poor future performance.
  8. This approach was just an attempt to gain a better understanding about crypto dynamics during the workweek. Nothing is cast in stone, and I am keeping an open mind for other trading strategies. Adapting this type of analysis as a filter for other trading strategies – including some intraday strategies – may yield positive benefits.
  9. When I first started trading other markets before Satoshi Nakamoto became a household name, my trainers and colleagues told me to avoid trading on Fridays – “triple witching day” and “profit-taking” and all that. With a 7-day trading week for cryptocurrencies, I don’t think that conventional wisdom can be applied.

Note to self:

Litecoin isn’t really worth much of my trading energy in general, and don’t trade BTC/USD with 3-day lookbacks on Mondays. Stay in bed with my partner instead.

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DeFi Startup Acala to Build New Oracle Network For Polkadot Ecosystem 

DeFi Startup Acala to Build New Oracle Network For Polkadot Ecosystem 

DeFi project Acala is working to revolutionize the way projects using Polkadot information get their data — specifically, price feeds. 

Oracle exploits in the DeFi world are a hot topic right now: an eye-watering $100 million has been lost recently due to hacks. This is because protocols are getting their data, particularly price data, from just one source. 

Acala, in a technical collaboration with Laminar and Band Protocol, wants to make oracle networks more decentralized. 

How will they do this? 

The idea is that projects on the Polkadot ecosystem will use Acala’s Open Oracle Gateway. This system will speed up and secure the process of moving information off-chain to on-chain. 

Acala will do this by allowing multiple parties to create their own oracle price networks and provide price feeds — as long as they’re approved. 

Those using the Open Oracle Gateway will be able to pick the price feeds they want to use and choose an aggregated feed combining data (something that has been recommended as getting data from a single source compromises security.) 

All price feeds posted to Acala will be up-to-date, valid and refunded with transaction fees incurred, too, making them essentially free to anyone using Acala’s service. 

Why should we care? 

A number of hacks have happened lately because criminals are able to exploit weak oracles. Experts have also warned that this is likely to continue happening unless projects get their data from a number of sources. 

Acala is providing a solution: projects will be able to get price data from a large number of sources and the data will be approved and safe. 

This will protect exciting projects built on Polkadot — an ecosystem that has had a meteoric rise.

Who’s Acala? 

Acala is a DeFi hub and stablecoin platform powering cross blockchain liquidity and applications. The Acala Dollar (aUSD) is a multiple-asset-backed decentralized digital currency without volatility for the Acala network and wants to provide stability to those building on the Polkadot ecosystem.

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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BitTorrent Arrives in Huawei’s App Store Following Latest TRON Partnership

BitTorrent Arrives in Huawei’s App Store Following Latest TRON Partnership

TRON, the crypto network whose architects seem to never sleep, is back with another partnership announcement. Its latest, a deal with telecoms titan Huawei, is sure to get tongues wagging, not just within the cryptosphere, but the broader tech industry. Four of BitTorrent’s apps have been added to Huawei’s native app store, making them accessible on up to 3 billion Android devices.

BitTorrent is already the world’s largest file-sharing network, boasting 100 million users who access the service via desktop and mobile. The addition of the app to Huawei’s AppGallery extends the reach of the file-sharing network, placing it in the hands of potentially billions of users. Given the difficulty of having crypto-related apps admitted into Apple’s App Store, the deal will be welcomed by Asian smartphone users seeking a simple way to torrent files and interact with crypto.

No other company manufactures more telecommunications equipment than Huawei, the Chinese tech company that was founded in 1987. Today it has over 194,000 employees and a presence in 170 countries. It is China’s largest tech firm and maintains a strong presence all across Asia.

TRON Enters Another App Store

TRON, which owns BitTorrent network, and whose founder Justin Sun is the company CEO, has already gained admittance to Samsung’s Galaxy Store. Earlier this year, a number of TRON-based dApps were listed there and connected with the built-in TRON crypto wallet. Huawei’s decision to partner with TRON can be seen as further evidence of how crypto is permeating every vertical it touches. While no knowledge of cryptocurrencies is required to use the BitTorrent app, its tokenized ecosystem – powered by the BTT token – creates an economy for rewarding file sharers, who provide network bandwidth.

With payment platform PayPal recently adding support for cryptocurrency, which can now be used as a means of payment with online merchants, digital assets are enjoying a rip-roaring end to 2020. It’s a year that has tested the crypto market, and indeed the entire world, as a series of macro forces including economic and biological crises have buffeted society and impacted the markets. Now, with the worst ravages of the pandemic appearing to have passed, and multiple vaccines on the verge of being rolled out, the stage is set for a remarkable recovery.

As TRON’s mission to expand into every major entertainment ecosystem accelerates, so does the case for TRX and BTT being supported by more leading platforms. Coinbase and PayPal are likely to be the next to bow to the inevitable and invite the TRON family into the fold. Those are rumors for another day, though. This week, all that matters is that TRON has entered the Huawei app store via BitTorrent, and it won’t be relinquishing its place in a hurry.

“This is another huge milestone for TRON and BitTorrent to be listed by one of the largest Android manufacturers in the world,” enthused Justin Sun. “We are excited to see the blossoming universe of distributed networks grow via Huawei devices and technology.”

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Two of the biggest economies in the Middle East have teamed up to create a joint CBDC

Two of the biggest economies in the Middle East have teamed up to create a joint CBDC

Quick Take

1 minute read

  • Could a dual CBDC be viable?
  • Two of the biggest economies in the Middle East have joint forces to test a partner CBDC.

A report was released earlier this week from two of the most powerful economies in the Middle East that looked into a year-long joint project for a central bank digital currency and the results are very positive.

Project Aber was first announced in January of last year and is an effort between the United Arab Emirates and Saudi Arabia to help create a “proof of concept“ designed to “contribute to the body of knowledge in CBDC and DLT technologies.“

This is the first project of its kind where two central banks have worked collectively on such a project. The report highlights that the name choice of Aber was particularly chosen as it relates to the core mission of the project.

“The name Aber was selected because, as the Arabic word, for “crossing boundaries”, it both captures the cross-border nature of the project as well as our hope that it would also cross boundaries in terms of the use of the technology.”

The report highlights that the project used a digital currency backed with real money in order to force more research and consideration into issues that surround securities and payment systems that are currently existing.

On top of this, the report ends noting that a dual issued central digital currency was not only possible for cross-border payments but that it can even provide a significant improvement over centralised payment systems.

“The key requirements… were all met, including complex requirements around privacy and decentralization, as well as requirements related to mitigating economics risks, such as central bank visibility of money supply and traceability of issued currency.”

 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Sino Global Capital CEO believe there is no need for FUD just yet

Sino Global Capital CEO believe there is no need for FUD just yet

Quick take

1 minute read

  • Over the past few weeks, the leading cryptocurrency and many alternative digital assets have seen fluctuations in the price value. 
  • There have been numerous price dips last week and many traders seem to be experiencing a lot of uncertainty and doubt.

Over the past few weeks, the leading cryptocurrency and many alternative digital assets have seen fluctuations in the price value. There have been numerous price dips last week and many traders seem to be experiencing a lot of uncertainty and doubt. But the head of research at the blockchain investment company Sino Global Capital, Dermot McGrath, has said that the firm prefers to look long-term.

Last week, the Chinese government had seized $4.2 billion worth of crypto assets as a part of the Plustoken pyramid scheme and the court proceedings relating to it. After news broke on this, rumours were flying around the industry that these tokens were getting ready to be dumped on the open market and as a result, prices crashed further.

On Twitter, the chief executive officer of the blockchain investment company, Matthew Graham said the following on the Ponzi scheme:

Furthermore, McGrath spoke in an interview recently with CT saying that investors should look outside of the immediate headlines going on to note:

“In the crypto and blockchain ecosystems it is important to be able to ‘cut through the noise. We are long term bullish on Bitcoin and we continue to see the industry professionalize and mature as an asset class."

McGrath went on to discuss the topic of Chinese crypto miners saying that many have predicted that these individuals could conduct a 51% attack on the network for bitcoin but rejects this saying:

“Some of the reason that “Chinese miners” have been a “boogeyman” to western traders is simply a lack of understanding. In theory, of course we know that 51% attacks can occur, but the level of centralization/coordination and incentives simply does not exist among the Chinese miner community for top cryptos.”

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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