---
title: 'Easy Bitcoin Trading Strategy That Beats Buy & Hold (With Proof)'
source: 'https://youtube.com/watch?v=8blv0NdYeRc'
video_id: '8blv0NdYeRc'
date: 2026-08-05
duration_sec: 565
---

# Easy Bitcoin Trading Strategy That Beats Buy & Hold (With Proof)

> Source: [Easy Bitcoin Trading Strategy That Beats Buy & Hold (With Proof)](https://youtube.com/watch?v=8blv0NdYeRc)

## Summary

This video presents a Bitcoin trading strategy based on the Ichimoku Cloud indicator, claiming it outperforms the buy-and-hold approach. The creator backtests the strategy on Bitcoin from 2017, showing a total gain of 2087% versus 1019% for buy-and-hold. A bonus strategy using Chaikin Money Flow and MACD on a 15-minute chart is also introduced.

### Key Points

- **Strategy outperforms buy and hold** [00:03] — The Ichimoku Cloud strategy is claimed to outperform buy and hold, with proof via backtesting on Bitcoin from 2017.
- **Ichimoku Cloud adjustments** [01:13] — To use the strategy, disable all parts of the Ichimoku Cloud except Lead 1 and Lead 2, and change the displacement value to 1, leaving only the Kumo Cloud.
- **Reading the Kumo Cloud** [01:52] — If prices are above the cloud, it's an uptrend; below, a downtrend. Green line (Lead 1) above red line (Lead 2) confirms strong uptrend, and vice versa.
- **Entry signal** [02:34] — Enter a long position when a green candle closes above the cloud while the green line is above the red line. Exit when price closes below the green line.
- **Backtest results** [04:57] — After 37 trades from 2017, the strategy made $20,872 profit (2087% gain) vs $16,193 (1019%) for buy and hold. Losses were small compared to profits.
- **Bonus strategy for lower timeframes** [05:52] — Use 15-minute chart with Chaikin Money Flow and MACD. Money flow above middle line means only long positions; below means only short positions.
- **Bonus entry and exit** [06:33] — Enter long when money flow is above middle line and MACD crosses above signal line. Set stop loss below nearest swing low and profit target at 1.5x stop loss.

### Conclusion

The Ichimoku Cloud strategy, when backtested on Bitcoin, significantly outperforms buy and hold, and the bonus strategy offers a way to trade lower timeframes. However, the video includes sponsor promotions and may oversimplify trading risks.

## Transcript

outperforms buy and hold and later in the video i'm going to show you proof by backtesting the strategy on bitcoin all the way from 2017 but before we continue
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and so without further ado let's get on with the video and other cryptocurrencies have been on the rise lately there were
have made massive gains in just a short period of time and so because of this people began day trading it in hopes of catching these quick massive profits but what they don't know is that most
trading strategies out there actually underperforms buy and hold meaning they could have made more money if they just bought and held long term after back testing so many different strategies i actually found one that
outperforms buy and hold and that is by using the ichimoku cloud but for this specific strategy we're going to make a couple of adjustments to the indicator so first you go to settings and disable
all the parts except lead 1 and lead 2. then you want to change the displacement value to 1 and this leaves us with only the kumo cloud
so the kumo cloud consists of two parts the green line which is called lead 1 and the red line which is called li2 and how we read this indicator is very simple
indicates that the market is on an uptrend and if prices are below it indicates that the market is on a downtrend the position of the lines can also help us confirm the trend direction
if the green line is above the red line it indicates that the market is on a strong uptrend and if the green line is below line is below it indicates a strong downtrend
this indicator to trade cryptocurrency but bear in mind that this is going to be a long only strategy meaning we're only taking long positions we're not taking any short positions so first you need to remember that
cryptocurrency is the type of asset that can suddenly rise in a short period of time and so if there's a small sign of an make sure to enter the trade quickly so that you don't miss out on any profit
potential so for your entry signal if the green candle closes above the clouds while the green line is above the red while the green line is above the red line you take a long position
quickly before the trend reverses and so you if a red candle closes below the green line action in this chart we can see that the price
indicating that the market is still on a downtrend and so we don't want to take any positions yet next we saw that a green candle closed however the green line is still positioned below the red line
meaning we ignore the signal once again then we can see that the green line is now above the red line and the green candle so this is where you want to enter a long position
now for your exit strategy you want to let the trade run green line once this happens you exit your long once this happens you exit your long position
outperforms buy and hold by back testing it on bitcoin usdt daily time frame with a starting capital of one thousand dollars now bear in mind if you bought one thousand dollars worth of bitcoin usdt
made sixteen thousand one hundred and ninety three dollars which is an overall gain of one thousand nineteen percent so let's start back testing to see if our strategy can outperform
strategy the results are in after 37 trades from 2017 after 37 trades from 2017 we made a total profit of 20 872 which is a total gain of two thousand eighty seven percent
percent more compared to the buy and hold strategy now even though we lost more trades than we won we still ended up being because if you actually look at the numbers closely
the losses are very minuscule compared to the profits this means that the indicator did a good job of letting profitable trades run and cutting losses quick and remember we're using the daily time frame which
means you don't have to look at the chart all the time to execute the trades so overall it's proven to be a better alternative to the buy and hold strategy like trading at higher
time frames because it takes a long time and that is why i'm going to reveal a bonus strategy that you can use to trade cryptocurrency at a lower time frame so for this strategy we're going to
trade the 15-minute chart using a combination of two indicators the check-in money flow and the macd indicator this is how you trade the strategy so the first step is we want to use the
check-in money flow as a filter if the money flow is above the middle line we only take long positions and if the money flow is below the middle line we only take short positions
the next step is finding our entry setup if the money flow is above the middle line and the macd line crosses above the signal line you take a long position it's the same for short positions as well
line and the macd crosses below the signal line you take a short position and for your exit strategy once you've entered a trade you want to set your stop loss below the
nearest swing low and set your profit target at 1.5 times so let's look at the full strategy in action in this chart we can see that the check in money flow is above the middle line
positions next you want to wait for the macd to cross while making sure that the check-in money flow still remains above the once this happens you take a long position
and for your stop loss you place it below the nearest swing low and set your profit target at 1.5 times your stop loss profit target and so this counts as a successful trade
like here we notice that the check in money flow is below the middle line and so we're looking to take short positions only next you want to wait for the macd to cross
while making sure that the check-in money flow still remains below the middle line once this happens you enter a short now for your stop loss you place it above the nearest swing high
and set your profit target at 1.5 times your stop loss and we can see that the price hits our profit target so this counts as a successful trade now remember when you're trading on
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much for watching and i'll see you in the next video