Smart Trade Strategy Selection Guide
To help you navigate the world of Smart Trades, we have simplified the essential information so that you can choose the algorithmic trading strategy that best suits your needs. These strategies use algorithms to analyse the market in real-time, identifying the best times to buy or sell statistically. Each strategy is based on specific indicators from the financial world that follow set rules to assess the market.
Factors to consider when choosing your Smart Trade(s)
1. Availability of cryptocurrencies
- First, you could evaluate the cryptocurrencies on which each strategy operates and select one from those already in your portfolio.
- Or, if you don't want to use your cryptos or are interested in a new cryptocurrency, be sure to deposit funds via bank transfer or card to start trading.
2. Frequency
- The indicators are set to operate on various time scales, commonly called "frequencies". These can range from short periods, such as minutes or hours, to extended periods, like days or weeks.
- In simple terms, frequency denotes the regularity with which the indicator collects and evaluates market data. An indicator set on a high frequency will capture and analyse data much more frequently than one set on a lower frequency.
- This results in more signals being generated, which could lead to a higher number of trades if Smart Trade deems it advantageous.
3. Technical aspects
- Each strategy available on Young Platform is accompanied by a description explaining its advantages and mechanisms. Consider how each strategy interprets market data: some, for example, can identify trend changes, while others analyse the breaking of supports or resistances.
4. Return on Investment (ROI) - Historical performance
- Assess the value stated under “Return over the last 30 days”, keeping in mind that it shows the cumulative yield from the Smart Trade's backtest over the last 30 days.
- Remember that past performance does not guarantee future returns because market conditions constantly change.
5. Buy and Hold strategy
- Consider the difference between Smart Trade and the buy-and-hold strategy using the chart.
- The chart shows the cumulative yield from the Smart Trade's backtest over the last 30 days (represented by the yellow line). It is compared with the results of a buy-and-hold strategy (represented by the grey line). In simpler terms, it highlights whether, over the last 30 days, Smart Trade has generated higher returns compared to the classic approach of buying and holding a cryptocurrency.
6. Period suggested
- Smart Trade strategies may perform differently depending on the market context: some are more effective during Bear Markets, others in Bull Markets or Flat Markets.
- It is also suggested how long it will take to keep a Smart Trade strategy active to maximise the chances of success.
- Important: these recommendations are based on historical data, and although they can increase the likelihood of achieving optimal results, they do not guarantee success. Market conditions are variable and unpredictable, so results may differ even if the strategy is applied in the recommended periods or kept active for the suggested duration.
Remember that you can only activate one strategy at a time, but joining a Club can unlock many more. This guide is designed to help you make an informed choice based on your goals and available resources.
Young Platform does not provide tax, investment, financial services or advice. The information is presented without regard to a specific investor's investment objectives, risk appetite, or economic circumstances and may only be suitable for some investors. Investing involves risks, including total loss of capital. Users should always research and consult a qualified professional before making decisions.