![]() ![]() Why use the 26 Day Exponential Moving Average? In what markets do the ETH26EMACO typically outperform and underperform?ETH26EMACO typically outperforms in directional markets (bear or bull), and typically underperforms in choppy markets as EMAs may pick up more false signals resulting in more rebalances. If you’d like to play around with the data yourself (and tweak the parameters), feel free to fork the spreadsheet here. In production, the ETH26EMACO Set rebalances based on MakerDAO’s ETH price feed, which may output different results. These charts use generated ETH hourly data sourced from Gemini. ![]() As always, past performance is not indicative of future performance. It’s important to keep in mind the the charts above are based on a number of assumptions and are only meant for illustrative purposes. Utilizing the same historical period, ETH26EMACO would have also outperformed the ETH20SMACO Set. The model shows ETH26EMACO would have outperformed over the given historical time period and performed roughly the same in the long bull market of late 2017 - early 2018. This chart below compares the hypothetical performance of holding the ETH26EMACO Set against holding ETH over the last 3 years, assuming a slippage rate of 1% during each rebalance. The tools used below follow a predefined set of parameters and aren’t actively managed by Set Labs Inc. ![]() None of the following should be interpreted as investment advice. The content below is provided for educational purposes only, and not indicative of future performance. Read more on historical performance below.īoth ETH20SMACO and ETH26EMACO can be used in combination to diversify the risk of false signals in trend trading.ĭisclaimer: The content below is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. In horizontal markets, ETH26EMACO will typically generate more false positive signals. In strong trending markets (2017 bull market, 2018 bear market) ETH26EMACO typically generates more reliable signals than that of ETH20SMACO. However, the ETH26EMACO rebalances based on a weighted average which detects trend reversals earlier than ETH20SMACO. On the surface, ETH26EMACO and the ETH 20 Day Moving Average Crossover Set both generate a similar number of crossover signals and rebalances. How is the ETH26EMACO different from ETH20SMACO? ![]()
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