How to Create Cryptocurrency Trading Strategies
In this short tutorial, I will show how to simply test your trading ideas on crypto currency data using FREE crytpo data available at www.cryptodatadownload.com in the Build Alpha platform.
Step 1: Head over to CryptoDataDownload.com and select your historical data provider. I will use CoinBase in this example.
Step 2: Download your data of choice. I will select hourly data from Coinbase. Double click the [hourly] link to initiate the download. Below is what the data file looks like.
Step 3: Open up the Crypto data converter that comes with the Build Alpha platform. Simply edit the input_file variable to your recently downloaded data.
I’ve already configured mine to the Coinbase hourly data we just downloaded.
Then hit Run in the top menu button to create the ready to use data.
Step 4: Add the data to Build Alpha’s setting menu. Settings -> Add symbol and select the newly created file. Please set the ‘Type’ of data to Crypto. This ensures Build Alpha will permit fractional position sizing as opposed to traditional legacy markets.
Step 5: Set the symbol to the newly added BTCUSD data. Select any trading signals you want to test. I have pre-selected a cross above the 10 period simple moving average and a cross below the 10 period simple moving average. Build Alpha platform includes over 8,000+ built-in signals covering price action, indicators, volume, intermarket, multi-timeframe, economic data and more.
I have also enabled trailing stops on the left-hand side. You can select specific signals to test or thousands at once and have Build Alpha find the best signals.
Step 6: Analyze the results comparing against Buy and Hold and running Monte Carlo tests. There are many other features the Build Alpha platform offers but are outside the scope of this tutorial post
For more information, please check out crypto.buildalpha.com or send an email to david@buildalpha.com and mention this post!
