For a long time, trading on the crypto market seemed like something of a gamble. Especially for the ones who used leverage. Ruthless price fluctuations and unexpected events could easily destroy even the most confident strategies. But with the advent of automated trading software, the situation has changed. People can now rely on sophisticated algorithms that can react instantly to market changes.
SMARD launches a new trading strategy on client’s futures accounts, and in this article we will describe its nature and how it improves the reliability of clients’ investments.
The strategy is based on 3 principles aimed to achieve stable returns:
1. Portfolio diversification:
The strategy involves trading only the 30 most liquid assets. These are the assets that allow the most accurate and timely adjustment of position size.
Each individual position cannot be more than 1/30th of the invested capital. This principle provides additional diversification and reduces the risks associated with price fluctuations in individual assets.
2. Flexible portfolio adjustment based on the momentum effect:
SMARD gives greater preference to instruments with a bold momentum effect. When momentum increases, positions are smoothly increased to avoid missing out on potential upside, and when momentum fades, they are smoothly reduced to minimize potential losses, allowing adaptation to any market situation.
3. Independence from market trends:
The presented strategy trades both long and short. This makes it possible to capitalize on both upward and downward price movements, providing flexibility in any situation.
Before making the strategy public, SMARD thoroughly tested its performance on historical data and on the real accounts of beta testers to ensure that the results obtained in backtests match the results of real trading.
What backtest results does the strategy achieve?
The strategy was tested from 01.01.2021 to 25.08.2023.
In this period, the strategy demonstrated a Sharpe ratio of 1.15, profitability of 159.49%. There was not a single losing year during the whole test period.
The backtests conducted by the SMARD team convincingly confirmed that the developed strategy has the potential to achieve high returns at a low risk level. The Sharpe Ratio amounted to 1.15, which is an indicator of a successful combination of profitability and risk. From the beginning of 2021 until August 2023, the return was +159%, which proves the practical efficiency of the software.
Trading results on a real account:
It is also important to test the strategy in real life, as backtests are easy to manipulate. With that said, SMARD has been using the strategy for a short period, from 13.07.2023 to 25.08.2023. This approach demonstrated a strong correlation of 97% between the backtest and real life trading.
The differences in performance are obviously due to slippages, which may be due to natural market fluctuations and reactions to current events. As confirmation of the information, the SMARD team is ready to provide the entire list of transactions for a given period upon personal request.
From risk to control
The shift from excitement to control and efficiency is a key factor in achieving high performance in the cryptocurrency market. SMARD opens up new opportunities for individual investors, giving them the power of analysis and decision making not available to most individual investors and traders.
To learn more about SMARD and see trading results, go to the website and sign up for social media.
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Twitter - https://twitter.com/smard_club
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