henrio123
commented
1 year ago @joshuanatanielnm few changes
- 1W Change vs ETH BTC. to "1W Change vs USDC"
- Remove next text from Backtesting popup
Open henrio123 opened 1 year ago
henrio123
commented
1 year ago @joshuanatanielnm few changes
henrio123
commented
1 year ago
LAUNCH DATE: 29.11.2022 +5pm UTC
Use existing Design.
Steady ETH: 0x3F07A84eCdf494310D397d24c1C78B041D2fa622
Uniswap Link:
Name: Steady ETH Change: "1W Change vs USDC" Ticker: SteadyETH Traded assets: WETH and USDC Alternative to: Holding USDC Link: https://app.sommelier.finance/strategies/Steady-ETH
Token logo: https://github.com/strangelove-ventures/sommelier/issues/639
By: Patache Link: https://www.algoreturns.com/patache/ Logo:
Description: Capture the majority of ETH price breakouts, limit losses through trailing tops. "Risk first" approach - capital preservation is more important than capital growth.
Strategy Highlights: "Risk first" approach - capital preservation is prioritized over capital growth.
Always defined risk for every position prevailing from trade inception until trade exit.
Each trade strategy comprises two independent trade orders: 1 "Workhorse" with a fixed target and stop + 1 "Racehorse" with a trailing stop.
How it Works: Every recommended trade always sets the trade risk immediately after the position is activated. The level of risk is determined by our proprietary algorithms and is optimized for modest risk tolerance. It is important to emphasize that having a risk limit does not imply a guaranteed risk price, as slippage can be exacerbated in uncertain market conditions. With the downside risk under pragmatic control, the strategy can shift focus to the realization of upside potential. The upside potential comprises two parts – a fixed target and a variable target. A fixed target is a reasonable expectation of modest favorable market movement, and a variable target is deliberately open-ended to facilitate the pursuit of an opportunistic movement in favor of the trade. The pursuit of a variable target is activated when the initial capital outlay for the trade has already been earned back and realized, thereby adding no incremental risk to the position.
With the visibility of the trade risk, the investor can focus on the capital-at-risk/risk appetite. Our approach towards capital management is prudence accompanied by a strategy to “stay in the game.” We recommend a capital allocation of 2.5%-5.0% per trade, which allows the investor to stay with the strategy for 40-20 consecutive losing trades. Of course, the actual risk tolerance of investors is on a broad spectrum, and some investors may even be comfortable with a 10-15% allocation per trade.
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The trade management technique comprises two components: a workhorse and a racehorse. The point of the workhorse is to nullify risk and capture a small profit/cover transaction cost, and the point of the racehorse is to pursue a larger payoff opportunity. Capital allocation of 2.50% per trade strategy assigned equally to “Workhorse” and “Racehorse” (1.25% each).
ETH Long Trade example: A long trade is triggered when the market reaches the directional entry level. 2 positions on the long side are initiated by accumulating the ETH relative to USDC. Each position is immediately assigned a Target and a Stop (loss). If the market reaches the Target before the Stop, the workhorse BTC is sold for USDC, profit taken. Simultaneously, the racehorse Stop changes to a Trailing stop. At this point, the economic risk is nullified, a small profit is locked in, and the racehorse is pursuing a larger payoff potential.
Backtesting: Beginning Cellar Value: 500,000 Period: Period Tested: Period Tested: May 2021 - September 2022. First Trade: 5/7/2021 Last Trade: 9/10/2022 No. of Trades: 72 Winning Trades/Losing Trades: 40 wins/32 losses (55%/45%) Best Month: 8% Worst Month: -2.5% Worst Loss (Single Trade): -6,838 on 3/31/2022 Worst Drawdown (Peak to trough): 7.55% Cumulative Profit: 46.6% Annualized Mean Return: 27.8% Annualized Std.Dev of Return: 10.4% Annualized Sharpe Ratio: 267%