ETH/BTC Five-Minute Long Strategy Using Stochastic and Price Bands

Summary

This open-source strategy takes long positions on an ETH/BTC five-minute chart, combining a pivot-like reference level, a smoothed stochastic oscillator, and a wide price channel. Its main range-trading entry occurs when price is below the reference, stochastic is oversold and turns upward, and price remains above the channel floor. A separate channel breakout condition can also trigger a long entry. The exit logic mirrors these signals on the upper side, with overbought stochastic turning down or a break beneath the channel floor prompting a close.

The author describes using the system to scalp within ranges and respond to larger trends, and reports a short backtest window with a stated commission and initial capital. No detailed performance statistics or robust evaluation are provided. The script is long-only, uses full-equity sizing, and does not pyramid. Its fixed parameters and limited sample make the reported results insufficient to establish reliability; transaction costs, market conditions, and implementation details could materially affect outcomes.

Key ideas

• The strategy uses a smoothed stochastic crossover below an oversold threshold to time long entries beneath a reference level.
• A long entry can also occur when price crosses above the upper boundary of a wide channel.
• Exit signals combine an overbought stochastic crossover with a break below the channel floor.
• The strategy is long-only, uses full-equity sizing, and allows only one position at a time.
• The author describes a short backtest, which does not establish how the method performs across other periods or conditions.

Tags

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