Quick recap
The meeting discussed risk management and strategy development in cryptocurrency trading. The importance of backtesting and diversifying portfolios was emphasized, with a focus on pair selection metrics and the reliability of metrics like galaxy score. The potential advantages of relative volume and the importance of monitoring bot deals were also discussed, along with the potential risks and strategies for investing in the cryptocurrency market. The challenges of retrieving data for backtesting and the limitations of backtesting on platforms like Trading View were also addressed.
Summary
Cryptocurrency Risk Management and Strategy Development
The meeting primarily revolved around the topic of risk management and strategy development in the context of trading or investing in cryptocurrency. The participants discussed the importance of backtesting and the potential risks of relying heavily on a single strategy. The idea of diversifying portfolios and not blindly trusting a single backtest was emphasized. David/Donny later proposed the use of pair selection metrics that consider recovery strength and resilience during pullbacks as potential indicators for future performance.
Trading Bot Performance and Metrics Discussion
The speaker discussed their use of a trading bot called Safira, specifically in the old market, from July 2020. They expressed skepticism about the reliability of metrics such as galaxy score in assessing coin performance, instead viewing it as a potential indicator of upward trends. The speaker also shared insights from their experience with different trading strategies, noting that aggressive strategies like old rank performed well during bull markets but not in bear markets. They also mentioned issues with pre commas disrupting paper trading accounts. The speaker then shifted the discussion to a different bot that focuses on daily volume and performed well in the recent bullish market, although it had to manage some red bags. The speaker concluded by discussing the potential advantages of relative volume and the importance of monitoring bot deals to prevent simultaneous pair trading.
Cryptocurrency Investment Risks and Strategies
The speaker discussed the potential risks and strategies for investing in the cryptocurrency market, specifically focusing on the use of volume-weighted moving averages and other metrics to rank coins and identify investment opportunities. David/Donny asked about the availability of these metrics in trading platforms, but an answer was not provided. The discussion then shifted to the uncertainty surrounding the lunar crush platform’s business model and the platform’s ability to sort and analyze data using different metrics. The speaker demonstrated how to use the platform to identify a coin’s performance and its impact on the selection strategy. The need for considering the frequency of data updates on the platform was also highlighted, as it could cause delays in reflecting changes in the market.
Data Retrieval and Backtesting Challenges
The team discussed the challenges of retrieving data for backtesting, which could be up to 4 hours behind, requiring significant development to store and make it available for users. They also highlighted the limitations of backtesting on platforms like Trading View, which doesn’t allow for external data import. The team emphasized the importance of forward testing and the need to continuously evolve and tweak trading strategies. The discussion also touched on the potential use of small amounts of real trading for more reliable results.
Cryptocurrency Metrics and Website Usage
The meeting revolved around the discussion of a website that provides metrics for cryptocurrency rankings and performance. The speaker explained the process of using the website to sort and analyze data, highlighting the potential of backtesting. The conversation also touched on various metrics such as the ‘galaxy score’ and the ‘RV score’, and their significance in predicting a coin’s performance. There was a clarification that the ‘RV’ score comes from the ‘crypto screener’ and that it can be adjusted according to timeframes. The speaker also mentioned plans to test a new metric, ‘MBMC’, against the ‘RV’ score. The speaker concluded by informing the group that there would be a break, as they would be moving houses.
