100 Waves ETH/BTC
Strategy trading ratio between ETH and BTC
100 Waves ETH/BTC trades ETH versus BTC (aka "ratio"). Careful backtest proved that there's no need to create two separate strategies (as in case of ETH/USD strategies): this strategy delivers good risk adjusted results no matter if your goal is to multiply your ETH or BTC amount.
Design wise it works according to principles of 100 Waves family strategies. It is trend following, fully automated, using Bollinger Bands™ as its main indicator on daily bars (if there's a change in allocation, it rebalances once a day).
Strategy consists of 100 substrategies, sharing the same algorithm but with different parameters.
The advantages over buy and hold are enormous here (compare 25% ROI with 1979% and -89% max drawdown with -53% max drawdown).
It may be also interesting to look at the results of this strategy from fiat currency perspective. Investing 1 ETH at the start equals investing 11.127 USD. At the end of the benchmark. 16.65 ETH is worth 3857 USD (at 236.5 USD/ETH). It’s almost 2x better ROI than what 100 Waves ETH/USD achieved during the same period, however, USD denominated drawdowns are substantial and UPI is around 2x lower, suggesting that for investors looking at USD profits, 100 Waves ETH/USD Dollar Yield may be a better option.
Backtest results
ⓘ Note about those results: While all terms are described in Glossary, I'd like to explain how to read those numbers correctly. There are two columns referencing to two "hodling" "strategies". If one just held ETH he could buy 25% BTC more in the end, while if one held BTC, his account worth in ETH was 25% less at the last day.
