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ETH-MATIC-USDC momentum beta

MATIC and ETH momentum strategy to maximize gains in bull market and avoid losses in bear market, on Polygon

Strategy description

This strategy is a momentum and breakout strategy.

  • The strategy trades ETH and MATIC over long term time horizon, doing only few trades per a month.
  • The strategy delivers similar profits as buying and holding MATIC and ETH, but with much less severe drawdowns.
  • The strategy performs well in long-term Bitcoin bull market.
  • In bear and sideways markets the strategy does not perform well.
  • It is based on RSI technical indicator, the strategy is buying when others are buying, and the strategy is selling when others are selling.

Past performance is not indicative of future results.

Assets and trading venues

  • The strategy trades only spot market
  • We trade two trading asset: MATIC and ETH
  • The strategy keeps reserves in USDC stablecoin
  • The trading happens on QuickSwap and Uniswap on Polygon blockchain
  • The strategy decision cycle is daily rebalances


The backtesting was performed with Binance ETH-USDT and MATIC-USDT data of 2019-2024.

The backtesting trading venue (Binance) is different from the live trading venue (Quickswap, Uniswap), because DEX markets do not have long enough history to result to a meaningful backtest.

The backtesting period saw one bull market rally that is unlikely to repeat in the same magnitude for the assets we trade.

Past peformance is no guarantee of future results. Like with manual trading, automated trading is unlikely to be perfect. There will be variance in the range of 30% - 50% in the results.

Further information