How to choose a coin
Last updated
Last updated
It is entirely personal how to choose a coin. I like NOT to choose coins with a low market cap. Also, I need higher percentage profitabilities. The higher, the better. I can not say better coins for you since this is not financial advice.
For experimental reasons, let us choose INDEX:ETHUSD.
I have chosen INDEX:ETHUSD rather than ETHUSD (Binance) or ETHUSD (from other exchanges) because I believe the Index has the most data and will likely have a better reflection in the results
Choose the strategy indicator. Note the percentage profitability.
It is better to choose a coin that provides higher % profitability. If the profitability drops below 80%, I prefer not to experiment with that coin. I also look at the total closed trades. If the total closed trades are low, then I prefer not to trade that coin.
In conclusion, I am looking for coins with more closed trades and higher % profitability.
For our example, we have profitability of 82%.
If you change the timeframe, you will find the profitability changes. Find the optimal timeframe for which you have the best % profitability.
For example, I find INDEX:BTCUSD does well under a 2day timeframe and INDEX:ETHUSD does well under a 1day timeframe.
Look at the config by clicking the COG icon.
Scroll down on the popup window.
You will find heaps of configuration. By default, it is set for long/buy trades only.
You can choose short trade or both long/short trades. And check the % profitability.
You may change the dates to test for different years and check how it behaved over the years.
If desired, you can put a percentage stop loss to see how it will behave in your experiments.
I leave it for you to experiment and find an optimal result for your chosen coins.