A Method of Trading Strategies for Bitcoin and Gold

Abstract

The price of Bitcoin has soared from $10,000 in 2021 to an all-time high of $60,000 in 2022, with a total market capitalization of more than $1 trillion, and gold has been used as the ultimate asset to protect the economy and protect against inflation. Therefore, it is predicted that gold and Bitcoin Investors can gain more income by monitoring the price trend of the currency and formulating a reasonable investment strategy. In order to obtain a better prediction effect, this paper divides the analysis of gold price prediction into two stages: before the epidemic and after the epidemic. Before the epidemic, the CEEMDAN-WD-WOA-BiLSTM model was used, and after the epidemic, the neural network was used in this paper. For Bitcoin prediction, PCA is used to select indicators with greater impact, and the ARMIA model is used to predict. After the prediction, this article combines various situations, uses the bull and bear market model, pricing index strategy and quantitative evaluation model to decide the amount of gold and Bitcoin to buy, and finally the profit obtained by this method has reached more than 30 within five years times, to provide investors with a practical and effective investment plan.