Visualizing profitability: A heatmap approach to evaluate Bitcoin futures trading using VMA trading rules

Min-Yuh Day; Yensen Ni; Chinning Hsu; Paoyu Huang

Heliyon (Nov 2023)

Visualizing profitability: A heatmap approach to evaluate Bitcoin futures trading using VMA trading rules

Min-Yuh Day,
Yensen Ni,
Chinning Hsu,
Paoyu Huang

Affiliations

Min-Yuh Day: Graduate Institute of Information Management, National Taipei University, Taipei, Taiwan
Yensen Ni: Department of Management Sciences, Tamkang University, New Taipei, Taiwan; Corresponding author. Department of Management Sciences, Tamkang University, No.151, Yingzhuan Rd., Tamsui Dist., New Taipei City, 25137, Taiwan.
Chinning Hsu: Department of Management Sciences, Tamkang University, New Taipei, Taiwan
Paoyu Huang: Department of International Business, Soochow University, Taipei, Taiwan

Journal volume & issue: Vol. 9, no. 11
p. e21376

Abstract

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Given that technical trading charts are publicly available on popular financial websites such as Bloomberg and MarketWatch, it stands to reason that the same technical trading approaches may be applied to cryptocurrency markets. One of these trading strategies is the variable length moving average (VMA), whose flexibility benefit has not been fully explored in prior research. To fill this gap, we evaluate Bitcoin futures using VMA trading rules and provide the results in a heatmap diagram. This approach allows investors to choose the most effective VMA rules, potentially leading to profits. Furthermore, our approach may shed new light on previously unexplored investment thinking and practices that have the potential to improve investment outcomes.

Published in Heliyon

ISSN: 2405-8440 (Online)
Publisher: Elsevier
Country of publisher: United Kingdom
LCC subjects: Science: Science (General); Social Sciences: Social sciences (General)
Website: https://www.cell.com/heliyon/home

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