By mastering the data, you can beat the majority of the "volatile market" for $BTC without leverage, outperforming Buy & Hold 🚀
Classifying the $BTC market into "volatile market" and "trending market"; a review shows that the $BTC market spends most of its time in a volatile phase, with one-sided trends only accounting for a minority. If you can grasp the operational rhythm of the "volatile market", it will significantly enhance the overall return rate.
The following is a review using Karma Index and Market Pulse:
✳️ Market Pulse: A weighted calculation of 11 indicators from CoinKarma ➔ Capturing short to medium-term trading opportunities.
✳️ Karma Index: A periodic composite indicator quantified by CoinKarma, covering spot liquidity, on-chain data, exchange traffic, and contract market data ➔ Determining the position of the larger time frame (whether it is close to the peak of the phase or still has room for upward movement).
As shown in the figure, both Karma Index reached above 80 in mid-March 2024 and early December 2024 (highlighted in yellow), indicating that the market is approaching the peak of the phase, and subsequently entered a "volatile market"; we used CoinKarma's exclusive backtesting tool to review the degree of Market Pulse's grasp of the "volatile market" after Karma Index ≥ 80.
Backtesting settings:
🟩 Leverage: None
🟩 Long: Market Pulse < 20; Market Pulse > 75 close position
🟩 Short: Market Pulse > 80; Market Pulse < 25 close position
Volatile phase (after Karma Index ≥ 80, the first occurrence of Market Pulse < 20 marks the starting point of the volatile market):
(A) 2024/3/18 - 2024/11/6: Return rate reached +74%
(B) 2024/12/18 - submission date: Return rate reached +64%
Without leverage, by using Market Pulse to capture short to medium-term trading, the return rate has significantly outperformed Buy & Hold.
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