Skip to content

Latest commit

 

History

History
25 lines (18 loc) · 2.04 KB

README.md

File metadata and controls

25 lines (18 loc) · 2.04 KB

Crypto SDCA System

Overview

The Crypto SDCA System is designed for long-term investing in cryptocurrencies, employing systematic dollar-cost averaging (SDCA) principles. It utilizes historical price data and statistical metrics to automate investment decisions based on predefined buy and sell thresholds.

Key Features

  • Z-score Calculation: Normalizes the difference using Z-score, indicating how far the current price deviates from the SMA.
  • Gradient Color Visualization: Displays the price chart with a gradient color background based on the Z-score of the difference, facilitating visual trend analysis. plot
  1. 200-week Moving Average: Computes the 200-week SMA to establish a baseline trend indicator.

  2. Z-score and Gradient Visualization: Calculates the Z-score of the difference between the current price and the SMA. This Z-score is used to color-code the price chart, highlighting periods of divergence from the long-term trend.

  3. Threshold-based Signals: Identifies buying opportunities when the Z-score of the distance between the price and SMA falls below -0.70, indicated by upward triangles on the chart. It also identifies selling opportunities when the Z-score rises above a predefined sell threshold (e.g., +2.00), marked by downward triangles. plot

  4. Automated Insights: Provides a systematic approach to cryptocurrency investing, automating decisions based on statistical analysis of price trends.

Benefits

  • Objective Decision Making: Removes emotional bias by relying on statistical metrics and predefined thresholds for buying and selling.
  • Long-term Focus: Targets long-term investment opportunities by leveraging SMA and Z-score analysis.
  • Visual Clarity: Enhances decision-making with visual representations of price trends.

Disclaimer

This system is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions.