AltCoin Index Correlation

20 May

🧠 AltCoin Index Correlation — Strategy Overview
AltCoin Index Correlation is a dynamic EMA-based trading strategy designed primarily for altcoins, but also adaptable to stocks and indices, thanks to its flexible reference index system.

🧭 Strategy Philosophy
The core idea behind this strategy is simple yet powerful:
Price action becomes more meaningful when it aligns with broader market context.
This script analyzes the correlation between the asset’s trend and a reference index trend, using dual EMA (Exponential Moving Average) crossovers for both.
When both the altcoin and the reference index (e.g. Altcoin Dominance, BTC Dominance, Total Market Cap, or even indices like the NASDAQ 100 or S&P 500) are aligned in trend direction, the script considers it a high-confidence setup.

It also includes:
Optional inverse correlation logic (for contrarian setups)
Custom leverage settings (e.g., 1x, 1.8x, etc.)
A dynamic scale-out mechanism during weakening trends
Date filtering for controlled backtests
A live performance dashboard with equity, PnL, win rate, drawdown, APR, and more

⚙️ Default Settings & Backtest Results
Timeframe tested: 1H
Test date: May 20, 2025
Sample: 100 high-cap altcoins
Reference index: CRYPTOCAP:OTHERS.D (Altcoin Dominance)
Leverage: 1.8x (180% of capital used)

📊 With default settings:
Win rate: ~80%
Higher profits, due to increased exposure
Best suited for confident trend followers with higher risk tolerance

📉 With fixed capital or 1x leverage:
Win rate improves to ~90%
Lower returns, but greater capital preservation
Ideal for conservative or risk-managed trading styles

🔄 Versatility
While tailored for altcoins, this strategy supports traditional markets as well:
Easily switch the reference index to OANDA:NAS100USD or S&P 500 for stock correlation trading
Adjust EMA lengths and leverage to match the asset class and volatility profile

🧩 Suggested Use
Best used on trending markets (not sideways)
Ideal for 1H timeframes, but adjustable
Suitable for traders who want a rules-based, macro-aware entry/exit system

Try it out, customize it to your style, try different settings and share your results with the community!
Feedback is welcome — and improvements are always in progress.

🚀 ### Check my profile for other juicy hints and original strategies. ### 🚀

22 May

Sürüm Notları

🧠 AltCoin Index Correlation — Strategy Overview
AltCoin Index Correlation is a dynamic EMA-based trading strategy designed primarily for altcoins, but also adaptable to stocks and indices, thanks to its flexible reference index system.

🧭 Strategy Philosophy
The core idea behind this strategy is simple yet powerful:
Price action becomes more meaningful when it aligns with broader market context.
This script analyzes the correlation between the asset’s trend and a reference index trend, using dual EMA (Exponential Moving Average) crossovers for both.
When both the altcoin and the reference index (e.g. Altcoin Dominance, BTC Dominance, Total Market Cap, or even indices like the NASDAQ 100 or S&P 500) are aligned in trend direction, the script considers it a high-confidence setup.

It also includes:
Optional inverse correlation logic (for contrarian setups)
Custom leverage settings (e.g., 1x, 1.8x, etc.)
A dynamic scale-out mechanism during weakening trends
Date filtering for controlled backtests
A live performance dashboard with equity, PnL, win rate, drawdown, APR, and more

⚙️ Default Settings & Backtest Results
Timeframe tested: 1H
Test date: May 20, 2025
Sample: 100 high-cap altcoins
Reference index: CRYPTOCAP:OTHERS.D (Altcoin Dominance)
Leverage: 1.8x (180% of capital used)

📊 With default settings:
Win rate: ~80%
Higher profits, due to increased exposure
Best suited for confident trend followers with higher risk tolerance

📉 With fixed capital or 1x leverage:
Win rate improves to ~90%
Lower returns, but greater capital preservation
Ideal for conservative or risk-managed trading styles

🔄 Versatility
While tailored for altcoins, this strategy supports traditional markets as well:
Easily switch the reference index to OANDA:NAS100USD or S&P 500 for stock correlation trading
Adjust EMA lengths and leverage to match the asset class and volatility profile

🧩 Suggested Use
Best used on trending markets (not sideways)
Ideal for 1H timeframes, but adjustable
Suitable for traders who want a rules-based, macro-aware entry/exit system

Try it out, customize it to your style, try different settings and share your results with the community!
Feedback is welcome — and improvements are always in progress.

UPDATES NOTES:
[2022-05-25] I made some little improvements to the Trade Labels. Now ScaleOut trades results are written in black and label size is normal. Final trades results are written in white and label size is big. Also changed default % ScaleOut value to 65 (was 50), because I noticed better backtested results.
[2022-05-25] I published a new indicator named "EMA Distance Indicator [Eddie_Bitcoin]" to use with this strategy. You can use both if you want to have a better view of the situation, providing more data.

🚀 ### Check my profile for other juicy hints and original strategies. ### 🚀