Frequently Asked Questions

Q1: How do I Choose a Strategy that Suits Me?

1. Align Strategy with Trading Style:

   • Choose a strategy that fits your trading goals. For day trading, select strategies that perform well on short intervals like minutes or hours. For long-term positions, choose stable strategies over daily or longer periods.

2. Evaluate Profit Potential:

   • Prioritize strategies with consistent returns over those with sporadic spikes in profits.

   • Look for strategies where historical trades have a small difference between Run-up and Profit, indicating optimal trade exits.

   • Avoid strategies with an average recent trade profit below 2.0%, as backtest profits do not take into account slippage and transaction costs.

3. Assess Risk Tolerance:

   • Choose a strategy that matches your risk comfort level. Opt for more conservative approaches if large drawdowns worry you, even if it means accepting a lower win rate.

   • Prefer strategies that consistently recover from drawdowns, showing strong risk management.

   • Examine the maximum historical drawdown to assess potential risks in adverse conditions. Avoid strategies with drawdowns that are too large relative to your account size to prevent excessive losses and emotional distress.

4. Adopt a Balanced Approach:

   • Use a comprehensive evaluation that considers multiple metrics together. A strategy with a decent win rate, favorable risk/reward ratio, and minimal drawdowns may offer better long-term sustainability compared to one with a high win rate but inadequate risk controls.

5. Understand the Market Context:

   • Understand the market conditions in which the strategy was tested. Some strategies perform well in trending markets but struggle in ranging markets, and vice versa. It's important to backtest strategies over extended historical periods and across different market scenarios.

Q2: Can Backtesting Result Accurately Represent a Strategy's Real Performance?

Backtesting result offers a historical-based reference for a strategy's performance, but it's important to understand that it doesn't represent a 100% accurate picture of historical returns.

This is due to:

1. Timestamp Discrepancy: Backtesting results are calculated based on the closing price of each time bar. However, in actual trading conditions, trades can be executed at any point within the bar, leading to potential discrepancies.

2. Execution Slippage: In live trading, a notable difference often exists between the anticipated execution prices of trades and their actual execution prices.

3. Transaction Costs: These costs, which include fees and commissions, can significantly impact the profitability of trades.

Therefore, we strongly recommend engaging in demo trading with the strategy to observe its performance before committing to live trading. This approach provides a more accurate assessment of how the strategy might perform in current market conditions.

Q3: How is the P&L of Trading Bots Calculated?

The Profit and Loss (P&L) estimates for trading bots are derived without real-time data from the exchange, making them approximations. It's crucial to understand that our P&L calculations are consistent regardless of whether you select "Base Currency" or "Percent Investment" as your investment type for the bot.

1. Here's how your position is calculated:

   • For bots trading a single pair, each entry utilizes 100% of the available balance. For example, if the position capital is 100 USDT and an alert signal is received, the bot will enter with 100 USDT.

   • For bots trading multiple pairs, each entry uses 50% of the available balance. For example, if the position capital is 100 USDT and the bot has two pairs, namely, USDT/BTC and USDT/ETH, when an alert signal for the USDT/BTC strategy is received, the bot will enter with half of the position, which is 50 USDT. Subsequently, if an alert signal for the USDT/ETH strategy is received, the bot will enter with half of the position again, which is 25 USDT;

   • When positions are closed, they are always fully liquidated at 100% of the position size.

   Note: Please note that the balance mentioned in the above rules is just an assumption; in reality, you do not need to allocate any balance on our platform for trading bots.

2. We uniformly calculate trading fees at 0.05%, and the prices for opening and closing positions are fixed at the instant a signal is triggered. We refer to TradingView for the price.

3. Our calculations also assume a 1x leverage, without accounting for variables like slippage, funding rates, or advanced features such as stop-loss or take-profit orders.

Q4: I've used up all my signal alerts. What should I do now?

Consider upgrading your account to get more signal alerts and additional benefits.