Brrrrr Strategy

Stock "Brrrrr" Strategy Introduction This "Brrrrr" strategy is a trading strategy that aims to profit by going long or short cryptocurrencies based on monitoring stablecoin issuance changes. The name comes from the…

Author

ChaoZhang

Complexity

Starter · 36 lines

Parameters

Backtest bar

2h · intraday

Tested on

BTC/USDT · futures

Stock "Brrrrr" Strategy Introduction

This "Brrrrr" strategy is a trading strategy that aims to profit by going long or short cryptocurrencies based on monitoring stablecoin issuance changes. The name comes from the sound "Brrrrr" that represents money printing, reflecting how the strategy operates by tracking stablecoin printing to determine crypto price movements.

The basic principle is: when stablecoins are issued, Bitcoin price rises; when stablecoins are burned, Bitcoin price falls. Based on this, we can go long Bitcoin when stablecoins are printed and close position or short Bitcoin when stablecoins are burned.

To filter out excessive invalid signals, the strategy adopts Donchian Channel techniques. Only when stablecoin issuance exceeds the highest level in the past 50 days will a long signal trigger. Only when issuance falls below the lowest level in the past 50 days will a close or short signal trigger.

The advantage of this strategy is capturing the market dynamic of stablecoin impacts on crypto prices, and filtering some noise through technical indicators to give relatively accurate trade signals around major trend turning points. But risks exist as it relies on a single variable, and stablecoin issuance is unpredictable.

In summary, the stock "Brrrrr" strategy is an interesting trading strategy worth further testing and optimizing based on monitoring stablecoin issuance, but traders should be cautious not to bet the farm on it. Combining more variables and indicators may further improve the strategy.

Name	Default	What it controls
v_input_1	true	Use short
v_input_int_1	50	len

Name

Default

What it controls

v_input_1

true

Use short

v_input_int_1

len

/*backtest start: 2023-08-13 00:00:00 end: 2023-09-12 00:00:00 period: 2h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy(title = "Brrrrr strategy", shorttitle = "Brrrrr", overlay = false, default_qty_type = strategy.percent_of_equity, initial_capital = 100, default_qty_value = 100, commission_type = strategy.commission.percent, commission_value = 0.1) //Settings short = input(true, title = "Use short") len = input.int(50, minval = 1, maxval = 1000) //BRRRRR (USDT Printing) brrrrr = request.security("GLASSNODE:USDT_SUPPLY", "D", close) //Donchian channel h = ta.highest(brrrrr, len) l = ta.lowest(brrrrr, len) //Lines plot(h, color = color.lime) plot(brrrrr) plot(l, color = color.red) //Trading if brrrrr > h[1] strategy.entry("Long", strategy.long) if brrrrr < l[1] if short strategy.entry("Short", strategy.short) if short == false strategy.close_all()

Brrrrr Strategy

Parameters

Source Pine Script

Build this with AgenKit

Understand it first

Related specs