Comparing XRP and ADA during 2019
Chart
The year 2019 has been an emotional roller-coaster for the crypto trader. A year that started with a continuation of the crypto winter we had in 2018, leading to further falls. However, the market finally turned in April and many coins saw an increase up to 300% in matter of two or three months.
These two charts represent two of the most capitalised altcoins of the market, ADA and XRP. As can be seen in the chart, the distance between the maximum and minimum price during December 2018 and December 2019 has been 260% and 160% for ADA and XRP respectively.
This year marked the end of the bearish market and the return of the positive volatility, one that goes up and not only tanks. In the case of ADA, the yearly minimum took place exactly one year ago, December 2018. Since then, it's maximums were at 0.10 USD per ADA, which is an increase of over 260%. Afterward, the price has declined so much that the coin has almost reached yearly minimums again.
For XRP the year has been slightly different. It has actually broken it's yearly low, and it has been the altcoin (of the top 20 altcoins) that has decreased the most during 2019. However, it has been less volatile than ADA, since its volatility range has been (only) 180%
This can tell us that in a potential bull run, ADA might be the more volatile coin, leading to bigger gains. However, if the market keeps retracing even more, ADA could be a worse investment.
Designing your automated strategy
The indicator that you can see in the chart is the Parabolic SAR. It is a trend indicator that helps to determine the price direction and when it might change. It is displayed by a series of dots above or below the price. If said dots are above the price, the indicator suggests a downtrend, while below the price an uptrend is suggested.
In Cryptohopper, this is a particular indicator. Unlike signaling buy, sell or neutral values like most of the other indicators, the parabolic SAR only signals buy or sell. The indicator will follow the trend of the price and reverse when the price changes the direction of the current trend.
However, for the Market Making bot, having an indicator that continuously pinpoints the trend of the market can be very useful to improve your results. Because you can change the settings of your market making bot according to market conditions, selecting this indicator in your strategy could improve your results.
The year 2019 has been an emotional roller-coaster for the crypto trader. A year that started with a continuation of the crypto winter we had in 2018, leading to further falls. However, the market finally turned in April and many coins saw an increase up to 300% in matter of two or three months.
These two charts represent two of the most capitalised altcoins of the market, ADA and XRP. As can be seen in the chart, the distance between the maximum and minimum price during December 2018 and December 2019 has been 260% and 160% for ADA and XRP respectively.
This year marked the end of the bearish market and the return of the positive volatility, one that goes up and not only tanks. In the case of ADA, the yearly minimum took place exactly one year ago, December 2018. Since then, it's maximums were at 0.10 USD per ADA, which is an increase of over 260%. Afterward, the price has declined so much that the coin has almost reached yearly minimums again.
For XRP the year has been slightly different. It has actually broken it's yearly low, and it has been the altcoin (of the top 20 altcoins) that has decreased the most during 2019. However, it has been less volatile than ADA, since its volatility range has been (only) 180%
This can tell us that in a potential bull run, ADA might be the more volatile coin, leading to bigger gains. However, if the market keeps retracing even more, ADA could be a worse investment.
Designing your automated strategy
The indicator that you can see in the chart is the Parabolic SAR. It is a trend indicator that helps to determine the price direction and when it might change. It is displayed by a series of dots above or below the price. If said dots are above the price, the indicator suggests a downtrend, while below the price an uptrend is suggested.
In Cryptohopper, this is a particular indicator. Unlike signaling buy, sell or neutral values like most of the other indicators, the parabolic SAR only signals buy or sell. The indicator will follow the trend of the price and reverse when the price changes the direction of the current trend.
However, for the Market Making bot, having an indicator that continuously pinpoints the trend of the market can be very useful to improve your results. Because you can change the settings of your market making bot according to market conditions, selecting this indicator in your strategy could improve your results.
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