Bitcoin trading algorithm still shorting hard. Explained why.
This is a brief explanation to why my very profitable bitcoin strategy is remaining short even after this recent crash in price.
Bitcoin tends to bottom in the same way as most other markets . The bottom of a trend is the point of maximum fear, and fear is commonly measured by volatility. At the moment, there is probably not enough fear in the market to create a bottom, the price is rising slowly but the standard deviation from the mean is still reducing, this suggests a bear flag pattern. The algorithm is programmed to remain short until a decisive move is made(in either direction) which signifies an emotive extreme among traders.
See related ideas to see the strategy.
Bitcoin tends to bottom in the same way as most other markets . The bottom of a trend is the point of maximum fear, and fear is commonly measured by volatility. At the moment, there is probably not enough fear in the market to create a bottom, the price is rising slowly but the standard deviation from the mean is still reducing, this suggests a bear flag pattern. The algorithm is programmed to remain short until a decisive move is made(in either direction) which signifies an emotive extreme among traders.
See related ideas to see the strategy.
