To use or not to use(Part 1)
It is part of a series of articles explaining how to use the Aladdin or Jasmine indicator. This article will take you with a hypothetical example with a decision process on whether to use the indicator or not to use.
A hypothetical example
The hypothetical example starts with using the Jasmine indicator using a 2day timeframe on INDEX:BTCUSD.
Decision Making
The first decision I have to make is whether to use the indicator for a coin. I have chosen INDEX:BTCUSD as the choice of coin.
The backtesting shows that it is about 91% profitability (accuracy) using data from 2016 till today with a 45 profit factor. I am using 8x hypothetical leverage and starting balance of $1. I end up with $3933.
A buy and hold return would have given me $103.7
Looking at the above data, I chose to use Jasmine for INDEX:BTCUSD. If the drawdown, profitability, accuracy, and overall result did not tickle my heart, I would not have used it. I also realize that it is not 100% accurate and only 91% profitable. Hence any future trade can be that 9% non-profitable trade.
Note
If I were thinking of using Aladdin, I would also backtest the same way for my initial decision making. The indicator only provides the data. The decision is individual.
Disclaimer: Please remember that past performance does not be indicative of future results. Different types of investments involve varying degrees of risk. There can be no assurance that the entertainment information referred to directly or indirectly in this newsletter (article) will be profitable, equal to any corresponding indicated historical performance level(s), or be suitable for you in any form or shape. Due to various factors, including changing market conditions, the content may no longer reflect current opinions or positions. Moreover, it would be best if you did not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from your financial advisor. I am not a financial advisor. I have no qualifications to be a financial advisor. It is only for entertainment purposes. Do not misuse it in any other way. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above, he/she is encouraged to consult with a professional advisor of his/her choosing. Neither I nor my indicators take any responsibility for any misuse of the information for any actual trading. I do have crypto positions in real life.
