A daily strategy that trades the ETH/BTC ratio itself — a relative bet on ETH outperforming BTC. Donchian breakout entries, a chandelier ATR trailing exit, and EMA + ADX filters that only let it trade when the ratio is genuinely trending. Because it's a relative ETH-vs-BTC move, it's largely uncorrelated to plain BTC/USD strategies — its real job is diversification. Long-only, bot-ready, and free.
The lesson baked into this strategy: the ETH/BTC ratio trends, it does not mean-revert. Fading it lost money for ten years running. So this trades with the ratio — breakout entries, trend-following exits — and only when a real trend is present.
Goes long when ETH/BTC breaks above its 20-period high — the ratio is making a new high, i.e. ETH is decisively outperforming BTC.
Only trades from the long side while price is above a 100-period EMA on the ratio — no counter-trend entries.
An ADX gate keeps it out of chop. Momentum only pays when there's a real trend — this is the deliberate inverse of a mean-reversion filter.
Winners ride a 3× ATR trailing stop from the highest close since entry, with an opposite-Donchian backstop. Let the alt-season run, bank it before the snapback.
Long ETHBTC = a bet on ETH outperformance (alt-season). Deployed long-only — shorting the ratio tested as pure drag (PF 0.67 over 10 years) and is off by default. All account mechanics are embedded in the script.
Trades one real spot market — the ETH/BTC pair — on the 1D chart, with orders filled on standard OHLC. One clean instrument, real fills.
It doesn't care whether BTC is up or down in dollars — only whether ETH is beating BTC. That makes it near-zero correlated to BTC/USD trend systems, so it earns in different windows.
Clean long-entry / trailing-exit alerts (action, symbol, price) for 3Commas, Cornix, or any custom webhook — including the free CryptoScope platform.
TradingView Strategy Tester results — ETHBTC Momentum on Binance ETH/BTC, 1D, 2016 – 2026 (~10 years), long-only, $10,000 fixed position size.
| Year | Return (1D, ETH/BTC) |
|---|---|
| 2016 (inception) | +191.0% |
| 2017 | +152.2% |
| 2018 | +88.6% |
| 2019 | −14.4% |
| 2020 | +21.9% |
| 2021 | +77.0% |
| 2022 | −12.6% |
| 2023 | −6.0% |
| 2024 | −12.2% |
| 2025 | +32.7% |
| 2026 (partial) | −1.9% |
| Avg / full year 2016–2025 | ~50% |
*Average of complete calendar years 2016–2025 (partial 2026 excluded from the average). Overall: +516% total return over ~10 years, profit factor 4.19, 41% win rate, max drawdown 7.5%. Returns are honestly front-loaded — the big years were the early alt-seasons (2016–2018), with several flat-to-negative years since. This is a diversifier: its value is earning in windows when the BTC/USD strategies don't, not carrying a book on its own. It depends on alt-seasons recurring. Tested on a fixed $10,000 position size, 0.10% commission, 2-tick slippage. Past performance does not guarantee future results.
Add it to your TradingView chart, run the backtest yourself, and wire the alerts to your exchange. No paywall — the whole CryptoScope platform is free.
Get Free Access on TradingViewPrimarily a diversifier. Because it trades ETH-vs-BTC (a relative bet), it's largely uncorrelated to BTC/USD systems and earns in different windows. Its returns are front-loaded toward the early alt-seasons, so it shines most as one leg of a multi-strategy book rather than alone.
Shorting the ETH/BTC ratio was tested and lost consistently (PF 0.67 over ten years) — the ratio trends rather than reverts. So the strategy only takes the long side and is off otherwise.
The ETH/BTC pair on the daily timeframe — built on Binance ETHBTC. It runs on the real spot pair for accurate fills.
Yes. It fires clean entry/exit webhook alerts compatible with 3Commas, Cornix, or any custom webhook — including the free CryptoScope platform.
Browse all four free strategies — 8H ATR Bands, 4H Conviction Stacker, 6H HA Direction, and this 1D ETHBTC Momentum.
Risk disclosure: Crypto trading involves substantial risk of loss. Backtested performance is hypothetical, does not account for all real-world conditions, and does not guarantee future results. Returns shown are on a fixed position size, are front-loaded, and depend on alt-seasons recurring. Nothing here is financial advice.