Cross the bull and bear markets and implement a low-risk trading strategy that outperforms BTC on VeryHash

Strategy return backtest results

Looking back at these eight strategies, from the investment on June 26, 2019, mining and holding coins to December 24, 2020, the coin hoarding strategy D had the highest cumulative returns for most of the time, regardless of whether it was a bear market or a bull market.

The cumulative return of the regular fixed amount purchase strategy ranks second most of the time, and the bull and bear markets have little impact on this strategy.

In all time periods, the cumulative return of the regular fixed amount strategy is greater than that of the one-time investment strategy , and the regular fixed amount strategy has not yet added other financial means to improve the utilization rate of funds.

The cumulative return of the coin hoarding strategy E is the smallest for most of the time, but if the strategy can be adhered to for a long time, starting from August 2020, the cumulative return of the strategy will rise rapidly, and by December 24, 2020, the cumulative return ranked second. This strategy is suitable for bull markets, but not for bear markets.

The currency price has the least impact on the mining, withdrawal and selling strategy , the cumulative profit curve is the flattest, and this strategy is suitable for bear markets but not bull markets.

Conclusion: In the BTC price rising market, the coin hoarding strategy C and coin hoarding strategy E have the best cumulative returns most of the time, and the cumulative return of coin hoarding strategy C is slightly higher than that of coin hoarding strategy E.

Conclusion: In the falling BTC price market, the mining, withdrawing and selling strategy has the best cumulative profit most of the time.  

Conclusion: At this time, the coin price is in a relatively stable range; the cumulative return of coin hoarding strategy D is the best.

At the same time, in a volatile market, the rate of return on fixed investment is the lowest.

The current BTC price is relatively high. What investment strategy should I choose?

Based on the initial judgment of the current market situation, if the current market situation is judged to be upward, then you can most likely choose Strategy C and Strategy E; by buying coins first, and then staking the coins to buy mining machines; you can enjoy double benefits, and this method has the highest benefits.

If you judge that the market will fall, you can choose the mining, withdrawing and selling strategy, which can still bring 34% profit even in a volatile market. You can choose the mining, withdrawing and selling strategy in both volatile and falling markets. In a falling market, it basically protects the principal. In an upward market, the profit is similar to the hoarding strategy.

In this data retrospective, there is a special case, which is the BTC halving in 2020; in addition, affected by computing power, the complexity of the entire data model is increased.

We chose T17 based on its time period. The data of new models such as S19 were released after the halving this year, so these models only have trend data for rising markets, and cannot see their performance in falling and volatile markets. Therefore, we chose the T17 mining machine that has gone through bull and bear markets as the data backtest object.