Which is the best day of the week to trade Cryptocurrencies? Good question! I decided as usual to do my research.
Summary
A lesson from Larry Williams, the G.O.A.T. of retail traders
How I did the TDW research
Conclusions
In the end, I tested Litecoin.
Conclusions
A lesson from Larry Williams, the G.O.A.T. of retail traders
I was reading a book by Larry Williams called “Long Term Secrets to Short Term Trading” and at the beginning of Chapter 7, he provides a simple trading system based on buying the SP500 index every day at the opening price and closing the transaction the next day at the closing price. Larry teaches us that "... a certain day should not be more predisposed than another day to upward or downward trend" and that "... the use of a simple filter, the TDW (Trading Day of Week) or the TDOM (Trading Day of Month), allows us to do what scholars say that is impossible: beat the market".
After that, I started my research on the TDW for cryptocurrencies.
How I did the TDW research
If you go to Our Shop, you can find a book called "Learn to program automated trading systems for TradingView from scratch".
Inside this book (page 47), you can find the code and the description of an automated trading system that enters the Long market if we are on a Monday and exits if we are on a different day (i.e. Tuesday). If we want to schedule the trade on days other than Monday, we would simply have to use the function's name relating to that day of the week.
Because cryptocurrencies are exchanged seven days a week, I created seven different systems.
I started with Bitcoin.
These are the properties of the trading system on TradingView (all the images below are screenshots by the Author):
After, I traded Ethereum.
Conclusions
Takeaways
This is not a full trading system! But it could be a great filter if you have a good trading system for trading cryptocurrencies. However, I think that we can consider these takeaways:
- As you can see from the graphs above, Friday seems to be the best day of the week to buy cryptocurrencies.
- Wednesday seems to be the best day of the week to sell cryptos.
Suggestions
- Test other cryptocurrencies and other data feed.
- If you have your own strategy for crypto, test if TDW can improve your performance.
A sincere wish of good work to all!
Written by F. GRAMOLA (*).
(*) Member of S.I.A.T., the Italian Society of Technical Analysis (member society of I.F.T.A. – International Federation of Technical Analysts).
Warning
We merely cite our personal opinions for educational purposes only.
Investing and trading are risky. Don't invest or trade money that you cannot afford to lose.
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Initial Photo by Kanchanara on Unsplash.
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