Strategy Selection Guide for New Users
TruePNL Robo-Trading is a flexible product that offers automated trading solutions for all kinds of market conditions. There are currently 10 bots executing different strategies and they’ve all been profitable since their inception, making money to hundreds of early adopters that subscribed to them on our platform.
We strive to help all kinds of users educate themselves about the crypto markets and make smart, responsible decisions. Our strategies are constantly monitored and improved by our analytical team, but they are not risk-free. The following article is not investment advice but a guide that is supposed to help inexperienced users decide what strategy to connect to when first signing up with the platform.
At present time all of our bots do Futures Trading on Binance, with USDT base currency, no leverage is used. This isn’t the same as crypto spot trading.
The TruePNL team is always working on improving the UI of the products and Robo-Trading in particular, however users often ask us for advice on how to select the strategy that’s right for them at this moment. The amount of data displayed on strategy page can seem a bit overwhelming:
Luckily, we have special tags in place that can help understand the most essential attributes of a strategy just by looking at them, and if a new user wants to get started using our Robo-Trading products right away, this is a great way to get started quickly.
Below is an example of the description panel, you can always find it on the right side of the interface.
From left to right, the indicators you’re looking at mean:
This tag is assigned to a strategy based on the balance of long and short positions. A strategy that mostly goes long will be bullish by its nature, a more balanced strategy will be neutral.
It’s not something a new user should immediately concern himself with, but it’s just something to keep in mind — during bear market a bullish strategy will likely have some periods of inactivity and the bot is less likely to enter positions.
The risk tag is fairly important and it’s something that new users should carefully consider, seeing how the general rule applies here — the higher the risk, the higher the reward. This tag is assigned based on a few parameters, including but not limited to Profit Factor and Max. Drawdown.
Trend/RSI/EMA and others
Last but not least, the right-most tag always displays the type of indicator used by the strategy. This is a fairly advanced piece of information and a new user has nothing to gain immediately by looking at it. The intricacies of how a given strategy works are usually given in the description, where our analysts elaborate a little on how the algorithm works, but truly understanding how strategies utilizing various indicators behave in the real market takes years of practice, and this is something that you rightfully want to leave to professionals (Our analytical team of course!).
Another thing worth looking at before making your final decision (or more than one decision, since you can diversify and connect to 2–3 bots if your portfolio is large enough) is Max Drawdown.
Drawdown is calculated as the percentage between the peak and the subsequent drop. Example: if a trading account has $10,000 in it, and the funds drop to $9,000 before moving back above $10,000, then the trading account witnessed a 10% drawdown.
Simply put, it’s the largest “dip” this strategy has gone through since inception, and if it has been running a long time during turbulent market periods, you can say with some certainty that you’re not likely to lose a larger chunk of your deposit allocated to following this bot in any given moment of time.
To summarize, it’s important to take a moment to research the information we provide about our strategies to choose the one that’ll work best for you. If you’re a relatively new user who’s just looking to make some profits with an automated trading strategy, you’re in the right place and hopefully with this little guide you now can make educated decisions within our platform.
Look out for upcoming guides for more experienced users where we’ll try to look into advanced ratios and parameters of our strategies.
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