Trading strategies: analysis, warnings, reality

Honest answer to "which strategy should I put in a bot": there is no strategy that works always. There are strategies that work well under certain conditions — and fail under others.

Basic strategies

  • DCA — regular fixed purchases. For: long-term investors. Works when: you have a long enough horizon. Warning: doesn't protect against prolonged bear markets.
  • HODLing — buy and hold. Important fact: most retail traders who trade actively show worse results than those who just bought BTC and held it.
  • Trend Following — trade with the trend. Problems: hard to identify trend start, easy to get false signals, fails in sideways markets.

Technical strategies

  • MA Crossover — moving average crossover. Buy when short MA crosses long MA from below. Problems: delayed signals, many false trades in sideways markets.
  • RSI Oversold/Overbought — buy at RSI < 30, sell at RSI > 70. Problems: in strong trends RSI stays in extremes for long, 30/70 are arbitrary.
  • Breakout Trading — trade on level breakouts. Problems: most breakouts are false, requires precise level identification.

Main warnings

  • Backtest ≠ real results. Any strategy can be fitted to past data.
  • No strategy works always.
  • Risk management is more important than the strategy itself.
  • Macro events override technical analysis.

How to test safely

  1. Theory — understand the strategy logic
  2. Simulator — test without real money
  3. Micro-test — minimal amount on live market
  4. Scaling — only after confirmation

Reminder

Real market adds emotion and unpredictability. The simulator shows logic but doesn't replace control.

Try simulator →