Strategy101
BTC Systematic Strategy

Z-Score Adaptive SMA100 2x/Cash

A systematic BTC strategy that uses the 100-day moving average for trend detection and Z-score volatility for dynamic leverage sizing.

CAGR (2017-2026)
+85.9%
Z-Score Adaptive
vs
+44.2%
1x Spot Hold

Key Performance Metrics (2017/8 – 2026/3, incl. 0.1% fees)

Strategy CAGR
+85.9%
annualized return
Max Drawdown
-62.6%
vs -76.6% spot
Risk-Adjusted Ratio
1.37
CAGR / MaxDD
vs Fixed Threshold
+85.9%
vs +69.0% CAGR
Total Fees (8.3y)
~$115K
0.1% per adjustment
1x Spot CAGR
+44.2%
Risk-Adj: 0.58

How It Works

Two simple rules drive the entire strategy: SMA100 determines when to be in or out of the market, and Z-score volatility determines how much leverage to use.

Entry

BTC Close > SMA100 × 1.02

Price must be 2% above the 100-day moving average to trigger entry. This buffer filters out false breakouts.

Exit

BTC Close < SMA100 × 0.98

Price must drop 2% below the 100-day moving average to exit. After exit, hold 100% cash until the next entry signal.

Z-Score Dynamic Leverage (when in market)

z = (vol_30d - mean_365d) / stddev_365d
Z-SCORE ≤ 0
2.0x
Vol below historical avg
0 < Z < 1.5
Linear
2.0x down to 0.5x
Z-SCORE ≥ 1.5
0.5x
Vol 1.5σ above avg

Why It Works

Four structural advantages that compound over BTC market cycles.

SMA100 Filters Bear Markets

BTC's biggest crashes (2018 -83%, 2022 -77%) all happened below the 100-day moving average. SMA100 gets you out at the start of a crash, avoiding the worst losses.

Z-Score Adapts to Any Era

BTC's absolute volatility has structurally declined as market cap grew. Fixed thresholds become stale over time. Z-score uses rolling 365-day stats to automatically adapt to the current volatility regime.

2% Buffer Kills Whipsaws

BTC price often bounces around the moving average. The 2% buffer filters out 60% of false signals, reducing trades from 13/year to just 5/year — with better returns.

No Prediction Required

No need to guess tops or bottoms. No need to judge bull or bear. Just check one number daily: close vs SMA100. Volatility is calculated objectively — zero subjectivity.

Strategy Comparison

Z-Score Adaptive delivers the best risk-adjusted return across all tested strategies.

StrategyCAGRMax DDRisk-Adj
1x Spot Hold+38.4%-83.2%0.46
2x Pure Hold+14.5%-99.1%0.15
SMA100 2x/cash (fixed 2x)+82.8%-89.3%0.93
Fixed Vol-Adjusted (40%/100%)+69.0%-57.9%1.19
Z-Score Adaptive SMA100+85.9%-62.6%1.37
Dual MA 50/200+26.7%-94.9%0.28

See It In Action

Try the interactive simulator with real BTC data from 2010 to today. Pick any start date, set your investment amount, and see how the strategy performs — including trading fees.

Launch Simulator