10-31-2022, 04:54 PM
I do backtesting for different investment strategies like DCA - here is what I've fo
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/yht270/i_do_backtesting_for_different_investment/"> <img src="https://b.thumbs.redditmedia.com/JisTL5Yx2SUU0N7mewjBUwByyB-ZgnVNTd7zmcoICfU.jpg" alt="I do backtesting for different investment strategies like DCA - here is what I've found out (so far)" title="I do backtesting for different investment strategies like DCA - here is what I've found out (so far)" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>Hello everyone,</p> <p>over time (in the stock market) I've made some progress in backtesting strategies - this means you can test an investment strategy (for example DCA) on data from the past. Starting with software (like MetaTrader5) I'm now 'stuck' at TradingView.com, a very nice site to look at charts. It has its own script language called 'Pine Script' to simulate investments. My goal was to find a way to test the strategies people are talking about.</p> <p>For the following examples I took <strong>ETH</strong> from <strong>1. Oct. 2020 until today</strong> with daily prices. Investment is <strong>$500 every month</strong>. Pics do not show the whole timeline, obviously.</p> <h1>First example: regular DCA (on 1st)</h1> <p><a href="https://preview.redd.it/1bi2yq9ys0x91.png?width=1151&format=png&auto=webp&s=fa6903c112765267717470e687f0c174d0107ca1"> investing $500 on the first day of every Month: +1795$</a></p> <h1>Second example: DCA (on 15th)</h1> <p><a href="https://preview.redd.it/8e5z8s51v0x91.png?width=1123&format=png&auto=webp&s=d950081f20234cfcf00e23a35810f50c5c3d24bd">investing $500 on the 15th day of every Month: +839$</a></p> <h1>Third example: DCA using RSI indicator</h1> <p><a href="https://preview.redd.it/hc0wobhbt0x91.png?width=1156&format=png&auto=webp&s=2f3c0f596f6e2bf346c5544e65293a0727232b2a">$500 every month, but you only invest when the RSI value is below 40: -$2490</a></p> <h1>Bonus example: DCA since 1.1.2017 (trigger warning)</h1> <p><a href="https://preview.redd.it/1uxm1vkgv0x91.png?width=1091&format=png&auto=webp&s=e94069bee151c0bafee126a4822be27b0d038e50">Let's feel bad about missing the opportunity: +$361,566</a></p> <p>What I've found out so far:</p> <ol> <li>Customizing DCA strategy with the RSI indicator did not lead to more profit, it's worse than just buying at a specific day.</li> <li>Customizing DCA strategy with MACD did not do the trick either (not pictured above)</li> <li>It is best to buy at the 1st of the month and not on the 10th, 15th or 20th (don't know why).</li> <li>I need a much bigger screen.</li> <li>I've wasted my time on stock.</li> </ol> <p>Let me know if you have ideas! Which strategies did you hear of? I will pick some and implement them to post the outcome. I can test the scripts on any coin or timeframe, also for any time interval. All the indicators are available, too!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Tavionnf"> /u/Tavionnf </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/yht270/i_do_backtesting_for_different_investment/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/yht270/i_do_backtesting_for_different_investment/">[comments]</a></span> </td></tr></table>
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/yht270/i_do_backtesting_for_different_investment/"> <img src="https://b.thumbs.redditmedia.com/JisTL5Yx2SUU0N7mewjBUwByyB-ZgnVNTd7zmcoICfU.jpg" alt="I do backtesting for different investment strategies like DCA - here is what I've found out (so far)" title="I do backtesting for different investment strategies like DCA - here is what I've found out (so far)" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>Hello everyone,</p> <p>over time (in the stock market) I've made some progress in backtesting strategies - this means you can test an investment strategy (for example DCA) on data from the past. Starting with software (like MetaTrader5) I'm now 'stuck' at TradingView.com, a very nice site to look at charts. It has its own script language called 'Pine Script' to simulate investments. My goal was to find a way to test the strategies people are talking about.</p> <p>For the following examples I took <strong>ETH</strong> from <strong>1. Oct. 2020 until today</strong> with daily prices. Investment is <strong>$500 every month</strong>. Pics do not show the whole timeline, obviously.</p> <h1>First example: regular DCA (on 1st)</h1> <p><a href="https://preview.redd.it/1bi2yq9ys0x91.png?width=1151&format=png&auto=webp&s=fa6903c112765267717470e687f0c174d0107ca1"> investing $500 on the first day of every Month: +1795$</a></p> <h1>Second example: DCA (on 15th)</h1> <p><a href="https://preview.redd.it/8e5z8s51v0x91.png?width=1123&format=png&auto=webp&s=d950081f20234cfcf00e23a35810f50c5c3d24bd">investing $500 on the 15th day of every Month: +839$</a></p> <h1>Third example: DCA using RSI indicator</h1> <p><a href="https://preview.redd.it/hc0wobhbt0x91.png?width=1156&format=png&auto=webp&s=2f3c0f596f6e2bf346c5544e65293a0727232b2a">$500 every month, but you only invest when the RSI value is below 40: -$2490</a></p> <h1>Bonus example: DCA since 1.1.2017 (trigger warning)</h1> <p><a href="https://preview.redd.it/1uxm1vkgv0x91.png?width=1091&format=png&auto=webp&s=e94069bee151c0bafee126a4822be27b0d038e50">Let's feel bad about missing the opportunity: +$361,566</a></p> <p>What I've found out so far:</p> <ol> <li>Customizing DCA strategy with the RSI indicator did not lead to more profit, it's worse than just buying at a specific day.</li> <li>Customizing DCA strategy with MACD did not do the trick either (not pictured above)</li> <li>It is best to buy at the 1st of the month and not on the 10th, 15th or 20th (don't know why).</li> <li>I need a much bigger screen.</li> <li>I've wasted my time on stock.</li> </ol> <p>Let me know if you have ideas! Which strategies did you hear of? I will pick some and implement them to post the outcome. I can test the scripts on any coin or timeframe, also for any time interval. All the indicators are available, too!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Tavionnf"> /u/Tavionnf </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/yht270/i_do_backtesting_for_different_investment/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/yht270/i_do_backtesting_for_different_investment/">[comments]</a></span> </td></tr></table>