Add Feature: Long-Term Sentiment Algorithm

[summercms]

Enhancement idea

• Add Feature: Long-Term Sentiment Algorithm.
• Connect to Alerts Modules and add custom alerts, see here: Update Core Algorithm: Add Alerts Module #70
• Connect to warning signals module, see here: Update Core Algorithm: Add Warning Signals Module #267
• Connect to Trading Signals module, see here: Update Core Algorithm: Add Trading Signals Module #269
• Add to Themes, see here: Add Feature: Themes module to core algorithm #194

Description

The long-term sentiment algorithm is made up of several sections.

The first section uses blockchain data and not price action to work out whether the cryptocurrency market is in either a bull run or a bear market.

The next section then divides the bull run into various stages. The primary stage is Bitcoin making gains during the bull run. A secondary stage is when Bitcoin and the Altcoins are making gains. An extra stage can check the current trading cryptoasset to see if it can make gains during the primary stage when Bitcoin and not the Altcoins are making gains! This happens when the Altcoin is trending and there is high interest in the cryptoasset.

Trading Strategy

During a bear market traders should hold stable coins and either not trade the market or get in and out quickly!

During a bull run traders should hold Bitcoin and switch to Altcoins during the secondary stage or in special cases the extra stage when the Altcoin is trending.

The trading strategy will be shown in the data window on the chart in real-time!

Data Window Results

• Bear Market ▼ (Hold Stable Coins)
• Bull Market ▲ (Bitcoin Only)
• Bull Market ▲ (Bitcoin + Current Asset)
• Bull Market ▲ (Bitcoin + Altcoins)

(*) - The Bull Market ▲ (Bitcoin + Current Asset) result is added to the core code and not to the crypto market algorithm.

Links

https://www.investopedia.com/insights/digging-deeper-bull-and-bear-markets/