How to Automate the Profitable Gaussian Channel Strategy on Bitcoin (1d and 4h chart)
https://www.youtube.com/watch?v=aXP-gsw7kxE
Transcript:
That’s right, guys. In this video, I’m going to show you how to use and automate one of the best freely available Bitcoin trading strategies in the universe. It’s called Gaussian Channel Strategy. And on the daily Bitcoin chart, it made a net profit of 1,895% since 2018, with a max drawdown of 30% and the profit factor of 3.
2 now guys did you make more profit on bitcoin since 2018 because if not you should consider using this strategy and i have developed it myself i put it out there on the internet to help you guys to not get wrecked one more time in the next bear market but also to make money on the way up right in the bull market which is right now in my opinion so in this video i’m going to show you how to use it, how to automate it, how the settings work, all of that and the reason I’m doing this is because this strategy blew up quite literally when I made this video here to show
people bad strategies and also bad settings for strategies. It totally blew up and in that video I mentioned that I have this freely available strategy if people come to the Telegram and they create a Signum account they get this strategy fully for free now a lot of questions came in how to use it how to automate it and everything well for me it’s easy but for you it’s maybe not so this video will now explain how to put it on the chart how to automate the whole thing and how to make it work for yourself we’re going to use it on the one day chart on Bitcoin but I’m also
going to show you how to use it on the four hour chart so that you can get signals faster. It’s also profitable there, but you need to know which settings to use. So in this video, I’m going to show you all of that. And if you want access to this trading strategy, then I will show you at the end of the video. And the reason for that is because first you need to know how it works and everything.
And then if you like it, you should get access, right? So make sure to watch the whole video and keep in mind, this video is not financial advice. You can lose all of your money in crypto because it’s quite risky. But that’s why, guys, you subscribe to this freaking channel and you watch my knowledge playlist, because my knowledge playlist is hands down life changing for any retail crypto retail crypto investor okay so make sure to check it out subscribe like this video if it helps you and with all of that in mind get your coffee and let’s go
guys okay guys first of all i have a bitcoin chart on the one day and i’m on the bitcoin usd index chart guys that’s the best chart for bitcoin in my opinion and especially for algo trading long story why just use that now in order to get the strategy on your chart you need to put this one on your favorites okay click on add to favorites you’re not going to have access immediately if you don’t have it yet because like i said i will tell you how to do that at the end of the video but once you have it in your indicators, you can then click on it. Where is it? Here. Click on it once and it will appear on your chart.
Okay. And it might be locked until I give you access. And after I gave you access, you need to reload TradingView because it’s not smart enough to understand that you now have access. And once you have reloaded it, you will see it the same way that I have it now on my chart. The next thing you need to do, because I don’t really like all of this information on the chart go to the settings click on this cog and go to style and disable signal labels and quantity and now it looks a bit more clean and as you can see here
it makes exactly the profit that i showed you in the beginning of the video with exactly the numbers and it’s outperforming bitcoin okay obviously makes sense okay guys so this is the strategy you can now fully automate it with signum i will show you in a couple of minutes the next thing you need to understand is what kind of settings does this strategy have let’s go to input and on the input this is very helpful it gives you a chance to decide when the strategy starts to trade and also when it ends right so 2060 it’s
some time in the future that’s all good but it starts reading 2018 0101 because that’s the time when i always start testing my strategies it’s the full bear market and i think testing the strategy while it goes down is making it very hard for the strategy which is good so if the strategy can still produce good numbers for me that means a lot okay the other settings that you have here are for the one day chart so those are the best settings i think for any asset any crypto asset for the one day chart
so you can keep it like that as long as you are on the one day chart if you are moving to the four hour and i will show you later then you need different settings okay so this is the strategy it’s quite simple let’s look at a couple of trades here okay so how does it work well it’s quite simple whenever the price goes above the upper line right then you can see it triggers a trade and when it goes below the upper line it closes the trade okay sometimes it has fake outs right where it goes up and down again but that’s okay because
this is also see avoiding drawdown so that’s okay right and so when you have a strong trend to the upside then this makes a lot of sense and it makes good money right when you have a sideways Market you can see it has a lot of these fake trades but again it’s not a lot of money there so that’s fine but you keep in mind that this is gonna happen and it’s not always gonna make money with every single trade obviously not and right now guys it’s in a trade because well bitcoin seems to be quite bullish okay so this is how it works it
does exactly the same thing from 2018 and until now it makes this profit okay and with this drawdown and so on okay so those are the numbers. This is how it works. Okay. Speaking of numbers, we also have to look at the settings of the strategy. And if you watched any of my videos, especially the last one, then you know how important this is.
So let’s go to the properties and here we have to make sure to use percentage. We do that. We have a commission of 0.1%. We do that. We have slippage of three and we have none of these other check boxes because they might be cheating okay might be repainting and looking ahead and all this stuff so those are the settings that we’re gonna go with i’m using 100 of equity simply because it makes it easier to test the strategy in real life you can use less but actually you don’t really need it to be here in this setting because you can just put less money on the account that you’re trading on and that’s how you decide how much money you give the strategy i will show you
that actually right now because i want to show you how to take this strategy and how to automate it the first thing you need is a signum account guys because you need to have it connected to trading view and signum then connected to your exchange so that the trades can be executed so signum is very nice because it has a very easy way to automate.
I will show you now and you will be quite blown away in my opinion. And Signum has all the features that you need to keep track of your automation, make everything super easy. I’m not going to go into the details. You will see. Okay, so click on sign up now, create an account. And I see you on the other side of that account.
It’s very easy to do all right once you have an account it will look something like this it will ask you to create a bot so click on that button connect the exchange that you want to use and it will guide you through the whole process it’s very very easy so i will use by bit in this example i’m already connected i have to create an api key put it here. Everything is fully explained.
You have to first create a sub account because every bot has to be on its own sub account. If you want to know why, watch this video. It’s absolutely best practice and you must learn this stuff. It’s very easy to do. So you create a sub account, just two screenshots to do that, very simple. Then for that sub account, you create an API key, right? You create that key, you paste it here on the top, right? And then you click validate.
Then you give your bot a title you choose a trading pair in my case it will be bitcoin usdt right and you put funds on the account right you have to move funds from your main account into the sub account that’s exactly when you decide how much money right you want to give that trading bot which is ultra easy to manage as well on the long run okay this setup is the best setup for automation ever I already have a bot as you can see here it is paused so let’s activate this bot here and now I have it on the top like this once you have created your bot you will see the same thing so create a bot with Bybit for example
give it a good name choose btcusdt and let’s click on the bot to get into the settings. So this is what I can see here. I can see the API key that I have created for this sub account and this bot, meaning that if I want to find the sub account later on, I can use this key to find exactly the one that I’ve connected to this.
And then you can see that Signum is fetching all of the assets that are on this sub account that is connected with this API key. That is very nice because it shows you which assets you can trade with, right? So I have USDT, so obviously I can have Bitcoin USDT, right? It makes sense.
If you don’t see any assets there, then often the reason is that you didn’t put it on the trading account. It might be the funding account okay it has to be on the unified trading or sometimes it’s called only trading account or sometimes like in binance it’s called spot account okay so that’s where the money has to be right so if you don’t see the money here then go to your exchange make sure you send the money to the right place and remember that we show you in signum how to do that right when you create a bot you click on the exchange that you’re working with and then here it says fund account and for every single exchange we have a tutorial on how to do
that guys okay so it’s very simple right so let’s go back to our bot to understand what to do next so now if you want to automate this okay because now you have a bot you have connected it to your exchange now the only thing you have to do is to copy this copy this and copy this and that’s it okay so let me show you exactly step by step how to do it so go to trading view choose your time frame this one is the one day bitcoin chart everything because everything has to be perfect before you do the automation
because when you create this alert you have to click on this button it will remember all of these settings so you have to put the settings to be perfect right for your automation so do i want this performance yes do i have all the settings proper yes that’s what i want great now let’s click on this button to create an automation to connect it to signum so it’s very easy now we have to just copy this right copy the title put it here then go back to signum copy all of this just copy paste right it’s going to be 100 in and out because it says here order size will be 100 and the action will be determined by the strategy itself whenever
it’s executed so it can be buying or selling right so copy the whole thing and just put it here instead of what is there already just that that’s it and now go to notifications and make sure to turn on the webhook url and here you have to put this URL here copy this right and put it here okay so basically you’re done but I want to explain to you very quickly the expiration date make sure to put one in the future okay don’t have it expire in like one or two days or something okay so click create and that’s it guys. You have now fully automated this trading strategy.
It’s so easy to automate that it might not even look like you have done a big thing now, but it’s actually massive because check it out. If you click here on the alert button, then you can see all of your alerts. And this is the one that you have created. Now those curly bracket things, those are placeholders.
So whenever the strategy right this strategy here has a buy or a sell signal and by the way if you didn’t know then the blue arrows they are buy signals and the pink arrows they are actual cell signals and this is what trading views also tracking here in the list of trades and this is how it calculates the backtest and everything right now the alert will get filled in by the strategy and all these placeholders right like the strategy order action will be given by the strategy so if the strategy is buying then it will say buy right all these
brackets are removed and instead it puts all the placeholders how they should be so all of these will be replaced by the strategy’s actions and so you have to know another thing that if there is already a buy signal that has been triggered already and you start now then you’re not going to get the historic signals that would be horrific you know that would be pretty bad so you want only the future signals right so you have created this alert today right at 1402 and stuff so every alert from that point in time, or you can also say every
trading signal from that point in time will be sent to Signum, right? And then Signum will send it to your connected sub account to actually trade for you, right? So remember this graphic here. So the alert comes, right, with a buy signal, let’s say, and then Signum will do the right thing to figure out what is 100%, right much money you have there and then send a trade a market order to buy and the market order to sell right whenever there is a sell signal okay so you will have the future signals right so you will follow this strategy exactly the way that it’s
executing here on your chart now guys i went to the one minute chart of course it’s fully unprofitable to do that but i want to show you that i’ve created an alert for the one minute chart and you see here it triggered an alert for buying let’s see actually what it triggered here you can see it triggered a buy action and all the placeholders have been replaced and if i go here to signum all the way down and i do refresh log i can see that today exactly when i’m recording the video, the bot has sent a signal, Signum has identified it, has performed successfully an order on Bybit,
and now I have Bitcoin, right? Now let’s scroll up and reload this page because now you see Signum is fetching the newest information about my assets and you see my USDT is gone and now I have some Bitcoin. Problem is it’s very small amount of bitcoin so here on bybit this is my demo account i have 49 but those 49 are in bitcoin right you can see i don’t have almost any usdt anymore i bought for 100 and now i have bitcoin right when the next signal comes for selling right it will just sell all the bitcoin and put it back into
usdt right and why is doing that is because it has the trading pair bitcoin usdt right so we go from bitcoin to usdt and then from usdt to bitcoin back and forth back and forth right based on the trading signals from the strategy now on the one day chart if you do exactly that it makes a lot of money right on the one minute that was just a demo it doesn’t make money right you can also see that in the backtest so i would never ever automate this because i want to make money this is just for testing purposes but let me show you that you can actually make money with the strategy on the four
hour chart right on the long term if you know the right settings okay guys now the strategy on the four hour chart right on the long term if you know the right settings okay guys now i’m on the four hour chart but to remind you right if i click on the daily these are the performance numbers okay not changing any settings going to the four hour you can see it is also profitable guys okay yes it has a higher drawdown of 44 guys okay yes it has a higher drawdown of 44 but it still makes 956 percent net profit guys okay the settings are all the same from 2018 and so on of course listen if i can choose i will go on the
one day because it makes way more money right with less risk with less drawdown but if you want to have a profitable setup of this strategy on the four hour then let me show you what you need to change okay guys jumping into the future those are the settings you need to change you have to change the source to high low divided by two polls four sampling period 144 and filter true range multiplier two and then you get these numbers on the four hour chart guys okay thousand five hundred percent profit on
bitcoin quite good since 2018 right and the drawdown is even lower that is quite fascinating so now if you want to automate this right then simply click on the add alert button and do exactly what i showed you before copy all the things here right one two and then three click create and that’s it you have an alert for this time frame you see here bitcoin four hour with this strategy with these settings you see even shows the settings right you see 44 to hl2 and so on right all there just make sure the expiration date does not expire obviously and
if you don’t have a super expensive trading view plan this expiration date will expire in two months maximum they don’t allow more than two months okay so you have to set an alarm in your calendar to come and update your trading alerts okay once every two months you can do it okay it’s not a lot of work so guys this is how you can set this strategy to work on the four hour this is how you can automate any time frame you want you can have as many alerts as you want all right i mean there is a limit in trading view but the limit is quite high so i’m not sure you’re gonna hit it at all and this is how you can make money on the short term
but also on the long term if you ask me i’m going for the long term because there is less noise in the chat i’m less kicked out by you know high frequency traders and stuff like that over the years that has worked better for me but you can do whatever you think makes sense for you here in this video i hope i changed your life i hope i’ve given you a great strategy with great settings great automation so let me know down in the comments if you like this video and also let me know what type of other content you like come to our freaking telegram and get access to the strategy only
thing you need to do is to create an account on signum okay and you need to give us your trading view username which is this one here on the top. This one is mine, Michael Ionida. I need yours, right? So I can add you to the list of people who has access to the strategy. For me, it looks like this, right? Access management, add new user.
I have to add you here, right? So that’s why I need your TradingView username. So make sure to go down below and click on the link to join our Telegram. And I see you over there. And if you’re still watching and wondering does michael have some solution for bigger portfolios like above 10k or more does michael have education or better strategies risk management templates and yes of course because i have an auto trading masterclass this is the highest quality offering I have where I give my strategies to
members and I give all of my education and my templates for creating portfolios for tracking portfolios position sizing what to do in the bear market explaining all the strategies it’s basically amazing but it is limited to only people that it makes sense for that’s why you have to click on apply for access and we’re going to have a call and if it makes sense for. That’s why you have to click on Apply for Access and we’re gonna have a call.
And if it makes sense for you, then you might be able to join. It is a very high quality offering. So I make sure that I let people in only when they are nice and they understand the process that we’re running because it doesn’t make sense to force a process on somebody that wants to do other things, right?
