What is CTA strategy
CTA strategy is derived from the traditional financial derivatives market. Most of the trading products show an obvious tendency, which means that once an inflection point is formed, the direction will not immediately move in the opposite direction, but will maintain the current tendency for a period of time before adjusting or turning. As the market has more participants, this trend becomes stronger.
CTA strategy is always based on the historical price of an asset. It either sets a range of normal price fluctuations (i.e. DAO) and uses a strategy when the price breaks through this range, or uses a strategy based on the relative movement trend of the long- and short-term moving averages. This type of strategy is essentially a speculative strategy based on the intensity of market volatility. It is easy to make profit when the market is volatile, and when the market volatility is small, the profit rate is low. Since not every transaction can be profitable. To stop loss timely is to achieve “win big and lose small”.
CTA Strategy Details
Bibox CTA strategy is divided into basic strategy and advanced strategy
- Basic strategy: The strategy algorithm is public, and trading parameters can be customized according to your own experience. Such as: DMA, MACD, moving average stop profit.
- Advanced strategy: The strategy algorithm is undisclosed, only some simple basic parameters can be set. Such as: Major Trends Hunter, Night Hunter, Shen, Bounty Hunter.
Parameters Introduction:
1. Invested Assets
That is, the principal allowed, and it currently only supports USDT investment
2. Leverage
That is, the leverage of each time an order is opened. The higher the leverage is, the greater the return and the higher the risk are
Order value per signal = invested capital * leverage
3. Set Stop Loss（%）（ Optional）
The CTA strategy will stop after principal loss reaches a certain ratio after setting
Principal return after stop loss= (1-stop loss rate) * invested assets
* Note: Due to market fluctuations, when the stop loss is triggered, the actual loss may be slightly greater than the set value
4. Cont(s)
This parameter will be automatically generated based on the principal and leverage, generally no need to adjust.
5. Open Premium Ratio
That is, when there is a signal, the system will place an order at a certain premium of the current price to ensure that the signal can be successfully placed
For example: when there is a signal, the price is 100 and the premium ratio is 0.003, then the system will place an order at a price of 100.3
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You can also contact Bibox telegram admin (@bibox_cs) or join the Telegram group （https://t.me/bibox_trading_bot） for more details.
