TRETS is a trend following system that combines two Coinz Trader Tools: Trend Strength and Trend Phases. It is a systematic trading programme with no subjective elements. With TRETS you hold Crypto Assets showing strength and exit on weakness. The system is short term and a typical trade lasts days to weeks.
When the short term trend for an asset turns negative, you exit. This means that you will generally not hold positions into severe drawdowns.
Important characteristics of TRETS are covered by the sayings: “The Trend Is Your Friend” and “Cut Your Losses”.
Entry and Exit – When and How Are Positions Changed?
TRETS generates only long positions. You are either flat or long, not short. The positions are updated daily. TRETS is not an intraday system. The entry and exit rules are few and easy to follow.
The rules for entry:
- The Trend Strength for a Crypto Asset turns positive.
- The Crypto Asset should either be in Trend Phase Bull or Warning.
The rules for exit:
- The Trend Strength for the Crypto Asset turns negative.
- and some …
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Position Reports
Position reports, showing current positions, are generated daily. Access to the positions vary for the member categories:
- Bronze members have intermittent access to the position reports.
- Silver members may access position reports every day.
- Gold members access daily reports and have also the option of customising the investment universe, i.e. can include Crypto Assets of their choice.
Results – What to Expect?
The Quantitative Profile below shows TRETS results based on a portfolio of Crypto Assets that had indicator values on Jan 1, 2016. This limits the universe but is done to make sure that the sample is sufficiently large.
Notes to the chart: The results are simulated, i.e. not based on actual trading. Transaction costs of 0.25% and 1% in slippage have been deducted for every trade. The following tickers are included in the universe: BTC/USD, ETH/BTC, XRP/BTC, XEM/BTC, LTC/BTC, DASH/BTC, XMR/BTC, BCN/BTC, DGB/BTC, XLM/BTC, DOGE/BTC, BTS/BTC, GAME/BTC, MAID/BTC, USDT/BTC, SYS/BTC, NXT/BTC, OMNI/BTC, BTCD/BTC, RDD/BTC, PPC/BTC.
Risk – Which Types of Market Environments and Situations Are Negative for the Strategy?
The strategy experiences hardship in range-bound markets lacking significant trends. What typically happens in this type of environment is that the price of an asset turns up, increasing the trend strength, leading to an entry. After entry the trend fizzles and the price reverts into the range with loss as a result. A pattern known as being whipsawed.
- ‘Pump-and-Dump’ situations are negative. In those cases, TRETS enters a position after the ‘pump’ has started and exits after the ‘dump’ has occured, resulting in a loss.
- TRETS enters a position when a trend has been confirmed by the Trend Strength AND the asset is in Trend Phases Bull or Warning. This means that the system usually will miss the early part of a trend. Use other systems and methods for ‘bottom-fishing’.
- A situation of a general market down-turn is negative to the strategy as there is no hedging (no short positions) or protection (no put options) and the correlation with the general market can be expected to be positive on the up-side as well as on the down-side.
Terms of Use
Usage of TRETS is governed by the general Terms of Service – Usage Agreement.