Crypto Trading 101: Trading Fantom (FTM) With The Simple Moving Average (SMA)

Let's see how you can use the Simple Moving Average to make a profit trading FTM on Cryptohopper.

What is Fantom FTM?

FTM, or Fantom, is a blockchain platform that aims to provide fast and secure transactions for decentralized applications (dApps).

It uses a Directed Acyclic Graph (DAG) consensus mechanism, which allows for faster and more efficient processing of transactions compared to traditional blockchain platforms.

What are Simple Moving Average Crossovers?

Simple Moving Averages (SMA) are commonly used technical indicators that track the average price of an asset over a specified time period.

A crossover occurs when the shorter-term moving average (e.g. 50-period SMA) crosses above or below the longer-term moving average (e.g. 200-period SMA).

When the shorter-term SMA crosses above the longer-term SMA, it suggests that the price is trending upward and is considered a buy signal. Conversely, when the shorter-term SMA crosses below the longer-term SMA, it indicates that the price is trending downward and is considered a sell signal.

Learn more about the SMA and other technical indicators on our podcast on Spotify and YouTube.

Best Simple Moving Average (SMA) Settings?

At Cryptohopper, we backtested multiple combinations of SMA crossovers for trading FTM.

We assumed a 0.1% fee per trade, all trades were taken with the entire account, and no slippage. The backtesting period was from 2019-06-03 to 2023-03-13, with a chart period of 30 minutes.

From what we tested we found these settings to work best:

• Chart period: 30 minutes

• Short Period: 140

• Long Period: 150

The results of this backtesting show a profit of 46,363.08%, which is 50 times better than the 923.77% return from buy and hold. The Max Drawdown stands at 71%, and while it is better than the 95% of the buy and hold, it is still significantly large.

We have created this strategy on Cryptohopper so that you can download it right away by clicking here. Please remember to have the settings "Sell based on strategy" enabled in your config/baseconfig.

Disclaimer: It is also important to note that past performance does not guarantee future success, and if market conditions change, the efficiency of this strategy may change as well.