If you are interested in making money of crypto for longer than a few lucky breaks, backtesting should be a tool you are cosy with. There is hardly a profession today that does not rely on data and historic research to devise a strategy. Backtesting crypto strategies has become so easy, that this blind spot for the rest can be your edge.
To be profitable in the long-term you need to know how you tick, and what kicks you off your course. Even if you plan there will be doubts. Let's look at some biases that get a bit less attention than loss aversion or anchoring, making trading psychology harder to master.
Today we're going to look at one of the movers of DeFi and the fastest emerging exchange of 2020 - Uniswap, an automated market maker liquidity protocol.
Trading psychology is one of the toughest things to master in trading. Novice traders must grapple with greed, fear, and plenty of biases that plague their success.
If you have decided to give automation here is deeper look into figuring out the success of strategy underlining your bot’s trading behavior and beyond.
On an exchange you are typically limited to setting one order once the position is open, which can either be a stop loss order or take profit based on the difference between the prices. This lack of options is forcing you to pick: do you want to capture profits or protect your funds in case things go south?
This article shreds light on the difference between the positions, trades and orders. They are interrelated, but slightly differ in how traders use them.