How to create a Trading System Reversal on XRP (Ripple)
The post How to create a Trading System Reversal on XRP (Ripple) appeared on BitcoinEthereumNews.com. Among the hottest cryptocurrencies at the moment is definitely Ripple (XRP), which after going through a difficult period due to legal troubles with the SEC (United States Securities and Exchange Commission) that wanted to classify it as a security, then found new momentum thanks to the positive resolution of the issue, and the fact that the President of the United States, Donald Trump, included it among the cryptos that will be part of the state’s strategic reserve. With a market capitalization that has recently returned to third place among the world’s cryptocurrencies, just behind BTC (Bitcoin) and ETH (Ethereum), XRP has established itself thanks to the progress of Ripple in the payments sector, but also due to the increased adoption of stablecoins like Ripple USD (RLUSD), which is expected to be integrated into Ripple Payments by the end of 2025. This article will explore the possibility of using XRP to build a robust algorithmic trading strategy, based on a reversal approach using Bollinger Bands. What are Bollinger Bands and how do they work in trading This indicator is named directly after its inventor John Bollinger, who analyzed the behavior of prices as they move away from or closer to their moving average. Bollinger wisely decided to include two bands, calculated as the standard deviation of the simple average of prices. The Bollinger Bands are therefore composed of 3 elements and are calculated using the following mathematical functions: UpperBand = average price of the last N periods plus 2 standard deviations; MedianPrice = average price of the last N periods (20 is the recommended number); LowerBand = average price of the last N periods minus 2 standard deviations. Figure 1 – Bollinger Bands Reversal strategy on Ripple: logic of the trading system and initial performance The strategy that will be adopted…
The post How to create a Trading System Reversal on XRP (Ripple) appeared on BitcoinEthereumNews.com.
Among the hottest cryptocurrencies at the moment is definitely Ripple (XRP), which after going through a difficult period due to legal troubles with the SEC (United States Securities and Exchange Commission) that wanted to classify it as a security, then found new momentum thanks to the positive resolution of the issue, and the fact that the President of the United States, Donald Trump, included it among the cryptos that will be part of the state’s strategic reserve. With a market capitalization that has recently returned to third place among the world’s cryptocurrencies, just behind BTC (Bitcoin) and ETH (Ethereum), XRP has established itself thanks to the progress of Ripple in the payments sector, but also due to the increased adoption of stablecoins like Ripple USD (RLUSD), which is expected to be integrated into Ripple Payments by the end of 2025. This article will explore the possibility of using XRP to build a robust algorithmic trading strategy, based on a reversal approach using Bollinger Bands. What are Bollinger Bands and how do they work in trading This indicator is named directly after its inventor John Bollinger, who analyzed the behavior of prices as they move away from or closer to their moving average. Bollinger wisely decided to include two bands, calculated as the standard deviation of the simple average of prices. The Bollinger Bands are therefore composed of 3 elements and are calculated using the following mathematical functions: UpperBand = average price of the last N periods plus 2 standard deviations; MedianPrice = average price of the last N periods (20 is the recommended number); LowerBand = average price of the last N periods minus 2 standard deviations. Figure 1 – Bollinger Bands Reversal strategy on Ripple: logic of the trading system and initial performance The strategy that will be adopted…
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