Mid-year crypto trading bot performance review Oxido Solutions
As we approach summer vacation, it’s the perfect time to review the performance of our trading strategies in the first half of the year at Oxido Solutions. What went well, and what can we improve? Here’s a breakdown of our progress and insights:
1. Our Trading Strategy
Oxido Solutions is providing an automated trading strategy focused on risk management, tailored for professional and institutional investors. Our approach uses a trend-following scalping strategy designed for Bitcoin Perpetual Futures. This means our trades follow the current market trend but only for a brief period to capitalize on minor Bitcoin price fluctuations. This flexibility allows our clients to maximize returns across various market conditions with their chosen collateral—EUR, USD, USD Tether, or BTC. We execute this strategy on top-tier cryptocurrency platforms like Binance, Bybit and OKX.
2. Performance Overview
The first six months have shown promising results, with returns between 36% and 60%, depending on client risk profiles. From January through mid-March, we saw strong market trends that led to significant profits. Following that, the market became quite choppy, but we managed to navigate through that period successfully. Although the last month dipped slightly, the overall performance remains strong. Our performance metrics, highlighted by directional crypto trading expert Michael Kart from VLG Digital, reflect our competitive edge in the market:
“I just had a look at your YTD performance data and must say you’re showing exceptional metrics (realized Sharpe of 5.9), beating the entire space by a wide margin”
Strategic Enhancements
We’ve seen significant improvements in how our strategy handles market volatility, thanks to innovations we implemented in 2023, like our sideways filter and double stop loss system.
The sideways filter efficiently identifies and avoids choppy price action, improving the trade entries. Our dual trailing stop loss mechanism strengthens our risk management with two main components:
– Primary Trailing Stop Loss: This starts when a trade opens and adjusts with price changes to limit risk.
– Secondary Trailing Stop Loss: This activates when trades become profitable, helping to secure gains and protect against losses.
This year, we’ve optimized the hosting environment for our proprietary middleware, Alpha Shifter. Our servers are now positioned alongside those of major trading exchanges in Japan (Binance) and Singapore (OKX and Bybit). This enhancement allows for quicker transmission of trading signals to the exchanges, improving entry points and the fill rate of limit orders from 93% to 95%. Ultimately, this leads to increased profits for our clients using our trading bots.
Looking Forward
While our strategy effectively handles Bitcoin’s volatility, there’s always room for improvement. We are developing a new method of order placement to further enhance our current limit order fill rate. Additionally, we are testing a feature that automatically closes positions based on price discrepancies between exchanges. This is designed to address any significant deviations that may indicate discrepancies in an exchange’s order book.
Last but not least, we’re exploring the development of a complementary strategy for Bitcoin Perpetual Futures to hedge against our current methods, aiming to optimize performance across various market conditions. However, refining our approach to match the effectiveness of our current strategy is a continuous process that requires ongoing effort and innovation.
