Short excerpt from a video discussing algorithmic trading for cryptocurrencies, emphasizing risk management, execution, small incremental capital deployment (dollar-cost averaging), and use of trailing take-profits to capture upside while picking local bottoms.
He's run a lot of algorithms, and there's a lot of algorithms in the market. But the key really above everything else is the risk management, but also the execution. It's very, very important. So just seeing here what the algorithm is doing, we're never layering a lot of our money into the market at once, right? We're simply using small amounts of the capital to slowly dollar cost average in over time and pick up these local bottoms. And this is really, really important. Now, another thing Costa's showing you here in terms of a feature, as you can see, we did pick up the local bot entry, but since in this example we're using a trailing take profit, you can also have a look at how we're able to capture upside in upwards movements as well, because this is very important.
