Zignaly Providers Monthly Recap (August)
TL;DR
While this month has seen an increase in volatility, the market still remains highly indecisive, with no direction.
Both the Providers have engaged in quite a few trades, and while the BTC Futures Provider has managed to conclude the month with somehow breaking even results, the ETH Futures Provider has managed to generate some nice profits.
Intro
This month has seen an increase in volatility, but the market still remains highly indecisive and with no direction.
Both BTC and ETH have experienced a dump around the beginning of August, but so far this seems more likely to be a “bear trap” and retest of the lows of the range rather that an actual trend reversion.
However, giving the currently high degree of indecision in the market it is not possible to completely exclude another excursion to the downside before we eventually see a more sustained up-move.
Except from the above mentioned dump at the beginning of the month, the crypto markets have been pretty much completely inactive, and experiencing a very close range movement.
For the fractals lovers, although we do not consider fractal in active trading, this current price action in BTC could remind of that from early 2019, when BTC developed an uptrend lasting a few month to then develop a downtrend which peaked during the infamous March 2020 dump, overall resulting in a larger sideways that constituted the base for the following 2020 bull market.
Providers
BTC Futures
After generating some profits thanks to a short trade that has benefited from the mentioned dump at the beginning of the month, the BTC Futures Provider has given back most of it due to the extremely choppy and indecisive market’s conditions.
While this situation is likely to continue for a while if BTC is creating a new long-term price base, we can hope that the market will still generate some good enough moves for us to capitalize on in the short term.
ETH Futures
The ETH Futures Provider, which as mentioned several times is more aggressive compare to the BTC one, has made the most out of the early month dump generating some very nice profits (+25.69%) for the month.
While this doesn’t yet allow the Provider to generate a new all time high, looks like it is slowly but surely heading in the right direction, as you can see from the equity chart below (taken from TradingView since the Zignaly’s one keep in consideration open equity and it is unreliable).
Since its inception almost two years ago now, this Provider has in fact consistently been generating higher highs and higher lows on its equity chart, although admittedly with considerable volatility, due to the aggressive nature of this trading system.
Conclusions
Until the market doesn’t solve its current indecisiveness and heads in a direction for some time, this choppiness is likely to continue.
However, as you can see for from the results of the ETH Futures Provider for the month, we always try to carefully manage our risk but also try to make the most out of what the market makes available, even when little.
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