Some traders and investors are trying to investigate whether or not technical trading rules in cryptocurrency are effective and profitable. The study includes collecting the daily price data on some cryptocurrencies. With the use of simple buy and hold strategy of an equally weighted portfolio, the study was able to generate almost 37% of average return per year. The study considered that when conducting technical trading in cryptocurrency, it is different from the equity markets. Generally, cryptocurrencies are being traded 24/7. Also, you cannot take short positions on cryptocurrencies unless you are only trading Bitcoin.

The Strategies. 

After the study conducted by experts, they results show that technical trading rile precisely generated about 9 % every year in excess return over the period of the sample. The results also recommend that when the implementation of the VMA strategies takes longer time horizon, the results would be less profitable technical trading. With this study some investors and traders are now considering technical trading in their investment and trading activities. Of course, the main goal of this is to provide users with their target profit as the bitcoin code is described to be profitable as well. 

To sum it up, the results of the studies of expert show that technical tardings has the potential to generate profits when implementing strategies among non-privacy cryptocurrencies. However, there is a limitation. The profitability is limited as only shorter time horizons of the VMP.  As such, in the realm of cryptocurrency where the competition is quite firm and strict, it is very crucial that you use the right strategies and equipment. This will help you have an advantage over your competitors. Technical trading might be one of those, but it still needs some further studies before proven to be effective.