Crypto Profitable-Wallet Share as a Long-Only Entry Signal

Summary

This strategy uses an on-chain series reporting the share of addresses that are profitable, sourced from IntoTheBlock for a selectable crypto asset. It plots the daily series, optionally smoothed with a moving average, and enters a long position when the raw wallet-share value crosses above a configurable threshold, set to 50% by default. The indicator’s background shading changes according to whether the value is above or below that threshold.

The source describes the approach as a long-term holding strategy and provides no exit rule; positions therefore remain open unless the user adds a sell condition or stops the test. It also cautions that the provider supplies daily data, so charts on shorter intervals may look coarse. Although the description claims the threshold has historically helped identify bull runs, it includes no performance statistics or supporting analysis. The signal relies on a third-party on-chain metric, and the code allows smoothing for display while the crossover condition uses the unsmoothed series.

Key ideas

• The strategy tracks the daily percentage of wallets reported as profitable for a selected crypto asset.
• A long entry occurs when the wallet-share series crosses above a user-set threshold.
• Smoothing options affect the plotted series, while the entry condition uses the raw data.
• The strategy has no programmed exit and is framed as a long-term holding approach.
• Daily source data can appear coarse when viewed on shorter chart intervals.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.