Trading Strategy For Bitcoin During Sideways Market

After a sharp price action, the price usually consolidates for some time with periods of sideways moves. That is the optimal time to trade swings on low volatility. The best trading strategy for bitcoin during times of consolidation is to trade small price swings.

Buy Condition

The trading system plans to sell Bitcoin on price increases. You can adjust the percentages based on the frequency of trades you want to achieve. Larger percentages will execute orders less often.

Bear in mind, the idea of this strategy is to trade with low volatility, sharp price increases or drops may invalidate the thesis making the rule temporarily ineffective.

Sell Condition

The rule then buys back Bitcoin at a lower price when the trend reverts in the short-term. 

If Bitcoin is moving on the downside, the percentage for buying back can be slightly higher than the one that triggered the sell order to optimize the results.

How it Works

Setting up a time frame to calculate the percentage to trigger the initial order for the rule allows following the price dynamically. Every time the price increases, the bot sells the set amount of Bitcoin to buy back at a lower price.

Not only is this the best trading strategy for Bitcoin in times of low volatility, but this approach also works well with any coin experiencing sideways moves with low volatility.

How to Build the Strategy with Coinrule

In times of price consolidation, trading manually can be very challenging and stressful. Deploying an automated strategy like the one described above helps to catch more opportunities that can add significant value to the wallet.