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This is great execution and UX. Congrats for launching! As someone who has done professional algorithmic trading before, I would strongly advise most users to
by nyrulez 8y ago
This is great execution and UX. Congrats for launching!
As someone who has done professional algorithmic trading before, I would strongly advise most users to deploy a small amount of capital to these strategies and treat it as a fun game, especially in the beginning. The most important thing in automatic trading strategies is risk management - I am not sure what intelligence does Mudrex provide around that, but even if you're right 70% of the time (very high for automatic trading), the rest of 30% trades gone wrong can sink you quickly if there are no intelligent ways to manage those trades.
The returns and losses also highly depend on volatility of instruments (volatility refers to the average uncertainty in returns as measured by Statistical Standard Deviation). Cryptos are highly volatile. Cryptos are fun to start with, but you must allocate money keeping that into account and you'll be fine. My recommendation is at least 15-20 times less for Bitcoin than what you would allocate to S&P 500, based on their volatility/risk factor alone (15% vs 75% annualized volatility). And even less for other coins (See project below for more guidance)
As an aside, I have been working on my own project for many months to bring trend detection, risk management and intelligent diversification for all DIY Crypto and Stock investors [0][1]. Feel free to check it out if you invest in stocks or crypto at any level. It's in Alpha and will be shared more widely in the coming month or so.
I've thought about bringing automatic trading to my venture, but after a lot of my own time spent creating my own strategies, I can't sincerely recommend it to others without an extremely high level of skill. The hedge fund I worked with had people watching these automatic strategies all the time with lots of alerts, triggers and Plan B management, even if they were "automatic". Who is going to watch the automatic strategies here?
[0]: https://stockquanta.com https://stockquanta.com
[1]: https://coinquanta.com https://coinquanta.com
- rohitgoyal 8y agoYou are absolutely right. And for that reason we have worked hard to build risk management tools. You can read more about it here on our blog as well. https://medium.com/mudrex/managing-risk-while-trading-4c14553fa143 https://medium.com/mudrex/managing-risk-while-trading-4c1455... If you have any other suggestions as well please let us know as we will keeping building on it.