I recently watched a fantastic video from Daan Crypto in which he explains a very specific BTC trading strategy (I’ve added the video below so you can go through the details if you want).
I’ve been super excited about this approach and decided to integrate it into Crypto OS.
With this blog post, I want to share all the details about the strategy, how we integrated it into Crypto OS, and how you can make the most out of it!
You will learn:
- What’s the Bitcoin CME is about
- How the strategy works
- Why it’s a weekend trading strategy
- How we implemented it and
- How you can make the most out of it ($)
Background about Bitcoin CME and why this strategy only works on weekends
Let’s provide some theoretical background about Bitcoin CME. This is essential to understanding the strategy’s basics.
Bitcoin CME Futures are assets that let investors speculate on future BTC prices without holding the coins.
It trades on the Chicago Mercantile Exchange (CME) from Sunday to Friday (Sunday 5 pm CT – Friday 4 pm CT).
The opening times are crucial for the strategy. Here’s why
Bitcoin CME Weekend Trading Strategy – How it works
As mentioned above, CME Futures takes a break over the weekend.
However, based on historical data, the break (often) creates a unique market behavior:
Historical data shows that BTC prices often revert to CME’s Friday closing price over the weekend. This happens during the weekend and once the CME is open again.
Our strategy capitalizes exactly on this pattern. Here’s a chart that perfectly describes the behavior:
- The red line indicates the CME closing price.
- As you can see, despite a volatility of ~4% (measured between the highs and lows during the weekend), the price was almost exactly at the CME closing price once CME trading started again on Sunday evening.
CME Trading Strategy on Crypto OS
Every Friday at 4 pm CT, our core algorithm monitors BTC prices against the CME’s closing figure. That means we constantly monitor the price and create an entry signal if we discover a deviation from the CME’s closing price.
Bitcoin Weekend Strategy – Entry Signals
If BTC deviates more than 2% from the CME close, our system triggers the following:
- Long Signal if 2% below CME close
- Short Signal if 2% above CME close
Signals are available on our platform and are also sent out by email to premium users.
Bitcoin Weekend Strategy – Exit Signals
Our algorithm doesn’t just open trades; it watches for the perfect exit.
Whether it’s hitting a profit target or cutting losses, we ensure you’re positioned to react.
In detail, we check the following:
- Whenever the price falls (in case of a long trade) or rises (in case of a short trade) by 1% compared to the entry price, we close the trade and count it as losses. Additionally, we send out an email alert informing that the stop loss level has been hit.
- On the other side, we monitor if the latest price ≤ CME Closing price – 0.5% (in case of long trades) or if the latest price is ≥ CME Closing Price + 0.5% (in case of short trades). If so, we send out a take-profit email.
🚨 Important
While the return to CME closing prices intra & post-weekend shows promise, it’s not guaranteed. This strategy requires precise risk management and a robust stop-loss strategy to safeguard investments.
Roadmap & What’s Next
We are currently evaluating two major enhancements of the feature:
- Bot Support: Plans are underway to automate trade openings/closings based on our algorithms.
- Customization: Future updates will allow users to adjust entry and exit thresholds, tailoring the strategy to individual risk appetites.
Want to get started with Crypto Trading and the Bitcoin Weekend Strategy?
If you want to get started with crypto trading, you can check out Crypto OS.
It’s the platform I’ve developed based on all the mistakes I made.
It contains data-driven trade signals, backtest data, AI forecasts, trading bots, and so much more. Try it for free!
