2018: Working on new market making strategy; trading the Bitcoin bottom

....very much work in progress scratched down using pinescript. Basically mean reversion with pyramiding. Because of fees and execution latency this strategy will most likely only work well in the real world with limit orders for entries and exits – i.e. the strategy must plan ahead instead of reacting using market orders and/or stop-entries.

It seems to work well on traditional markets too.; natural gas:

....or things like forex; here AUDUSD:

...or more unusual pairs like AUDNZD:

..and stocks, like FB:

$BTCUSD $BITCOIN: May 2017

Bitcoin (D) has had an amazing run within this channel since finding its bottom during 2015 sideways – and given what happened way back in 2013 it can actually break up from this channel and go parabolic once again. I would not open a new long term long and walk away from it here though.

On the 4H I set some targets while it was idling around 1525 (Bitstamp) and we've pretty much hit the upper target now.

If you're in a long term long I'd take off half or 1/3 right now or pretty soon and see. Taking any new longer term position (long or short) right now seems like a gamble.