The Algo Trend strategy is available for USDT and BTC assets.
This is a high-risk strategy and it is recommended for long-term investing (at least a year) and may show negative results in shorter periods.
How Algo Trend works
Trends are a fundamental state of the market, without which asset pricing is impossible. Trend trading has been one of the most reliable strategies for over 150 years and will remain effective as long as markets exist.
However, any market is in the trend phase only 10-20% of the time. It would be best to have a solid trading strategy and the patience to profit from this condition systematically. Approximately 70% of trades result in losses (during long periods of sideways movement - the strategy will lose). Still, the remaining 30% of profitable trades cover losses incurred during sideways movement and bring additional income.
The strategies are fully automated. Price and volumes are key statistics to analyze. The trading logic is optimized on a large array of historical data using forward analysis. The basic logic is based on entering and exiting positions using the cascade method when the price of an asset breaks through a specific range. Both long and short trades are used.
Risks and how we manage them
Exchange risk:
The strategy is executed on the Binance exchange. Market and strategy risks are limited to a maximum risk of 20%.
Diversification and market risk:
The strategy is a concentrated stock picker with substantial exposure to unsystematic risk. On the contrary, the strategy’s exposure to systematic risk is very low.
Algorithmic trading:
Algorithmic trading is subject to specific risks: incorrect algorithms that may cause trade, errors, external cyber-attacks, software updates that may negatively affect the software, Functionality, etc.
Leverage and short-selling:
The strategy uses leverage and short-selling that are highly speculative and involve a high degree of risk. Such practices may increase the volatility of performance and the risk of investment loss, including the loss of the entire amount invested.
Loss accumulation:
Loss accumulation is risky when statistical patterns, such as an extended sideway or a long trend, are more complex to recognize, causing excessively frequent retracements. Investment value may fall, and the investor may not be able to recover the total amount of the initial investment.
Past performance:
Past performance is not a guarantee of future results. Past performance was recorded on the above-mentioned personal accounts, managed by the previous version of the in-house built robot.
Other risks:
Risk factors affecting an investment's price, value, or income include, but are not limited to, political, economic, credit, and market risks. Not all risks are disclosed. You shall consult an advisor and not enter into any transactions unless you fully understand all risks.
Check out the detailed explainer video on the Algo Trend strategy: