We will look at how to measure the balance between risk and reward of investing in specific cryptocurrencies and how to value your trading strategies in this respect. Sharpe and Sortino ratios are the most mainstream tools to do just that. They used to require calculations, but today you can get them through back testing or using analytics on the strategy you are already trading.
No option is unequivocally wrong or right. We will try to clarify some of the reasons behind choosing BTC or USDT to trade in. You’ll be able to pick the one that fits current market conditions and your preference.
Trend following crypto trading strategies try to ride the price momentum of the cryptocurrency in the direction that it’s headed. Price is going up or down and you want to open a position in an established trend. Then close it when the trend stops. The classic buy low - sell high.
All traders ever dream of, is getting that edge over other traders. But what is “a trading edge” really about? A brand-new crypto bot, profitable trade signals, or maybe a newsletter…