The system was reset over the weekend, so that we can see how the latest update affects profitability. The latest change was to reduce the amount of profit the DCA module is seeking, by 0.1% once every hour.
The problem this is addressing, is that sometimes coins can trade sideways for quite some time, tying budget up in the drawdown for extended periods, while it waits for each trade to hit 1% profit.
This latest modification implements a compromise between profitability and having capital available for trades. If we tie up all the capital, then our drawdown can get quite high, which doesn’t leave us much margin for error if prices should take a significant fall.
But, but not seeking 1% on every trade and by reducing the % we are looking for every hour by a small amount, long running trades stand a greater chance of selling sooner, thus freeing up capital to spend on new trades, which also limits our exposure time to any one coin.
So far running for almost 2 days, we are seeing an annualised profitability of 100%, in reality, this will swing up and down a bit over the next few days as the averaging calculations need a few days operation under their belt before giving sensible results. But, even if the system can manage half that, I will consider it a good result!
I also switched from paper trading to trading real money with this change as I have quite a high degree of confidence in the platform. This highlighted a few glitches with the trading system that were quick to address and it’s been running solidly for 1.5 days now.
I’m looking forward to the coming week so we can see how the profitability averages out over that time frame and seeing how the system performs under various conditions.