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Cryptocurrencies are a rapidly expanding market that offers important earning opportunities to algorithmic traders.
To take advantage of these opportunities, we recently started focusing on this market and got very good results.
In this video, we show you the real performance of the crypto portfolio of our R&D Manager Francesco Placci. In less than 9 months, he made 90% net of all costs. Plus, in the video we also tell you about the many advantages offered by this market, which is perfect for beginners as well as for anyone who wants to start trading with a small capital.
Hi guys, I’m one of the coaches of the Unger Academy and today we’ll be talking about cryptocurrencies and, in particular, about real performances achieved using trading systems.
Why trade crypto
So, why this video? Obviously, this is not to show you how good we are, and how cool we are at Unger Academy. In fact, if you watch this video till the end, you’ll find out that our performances are within reach, as there’s nothing particularly complicated in the systems that we use. The aim of this video is to show you that the cryptocurrency market offers some incredible edges compared to traditional financial markets, and that these edges can be easily exploited using simple trading systems. So there’s no need for over-complicated systems that are 100-lines long. Most of the time, 5 or 6 lines of code are enough to get equity lines such as these ones.
Not to mention the other easy-to-exploit opportunities provided by this market, such as Cash and Carry, Staking, long-term holding. But we’ll talk about these opportunities in another video, so now let’s just focus on Systematic Trading only. The vast opportunities offered by this market made us decide to create a training program completely dedicated to cryptocurrencies. The reason why we did this is that we really want to show you how to exploit a market that, in our opinion, is currently the most interesting one.
Many of our students tend to focus on finding the perfect system when, actually, it would be much easier to focus on trading the markets that offer the best opportunities. This is the reason why we’re showing you this video and that’s why there’s a training program focused exclusively on crytpos.
Portfolio performance analysis
But let’s get to the heart of the matter. You are now looking at the results of a real portfolio of strategies for cryptocurrencies. These strategies work on the Binance exchange and the chart refers to the last 9 months of trading, so from January 2021 until today. We are talking about real trades that we extracted directly from the Binance website. So these results are not “estimated”. They are real results net of all trading costs, from slippage to commissions and funding fees. Everything’s included, so these numbers are absolutely real.
The overall performance of the portfolio is about 90%, as we can see from this chart. The maximum drawdown is very close to the starting point, and it’s around 25-26%. As I’ve already mentioned in some other videos, it took us some time to find the ideal setup for our infrastructure. I’m speaking, in particular, of the importance of getting a dedicated server that is powerful enough to support MultiCharts 14. The development of the portfolio also required a few changes, but finally, we managed to find a satisfactory combination. Lately, my portfolio has been working at full regime applying both volatility position sizing and money management. For these reasons, I believe that the unsatisfying initial performance is mainly due to this aspect.
One of the things I like most about the performance of this portfolio is how it behaved during the crypto fall that occurred from May to the end of July, when some cryptos went down as much as 50% in a very short period of time. In these difficult market conditions, this portfolio managed to significantly limit the losses and resumed making money right after the market started rising again.
The most negative aspect of this performance is instead the fact that the majority of the profits derive uniquely from Ethereum. Bitcoin and BNB contributed in a fairly limited way: 20% for Bitcoin and 10% for BNB, but we’ve also started trading them a bit later. Why is that? Well, because all the systems for Bitcoin that are not intraday are underperforming. I’ve noticed that working intraday on this kind of market is definitely more beneficial compared to working on the medium to long term, that is, using systems that try to keep positions open for a longer time.
Moreover, intraday trading systems can also exploit volatility very well, in particular those that are based on volatility breakout models.
Benefits of the Crypto Market
Another interesting aspect of the crypto market is that it allows you to trade without disadvantages even if you have a small capital because commissions are calculated as a percentage of the cash you invest in each trade. In other words, there’s no difference between big and small accounts in terms of performance. This aspect allows for applying volatility position sizing and money management approaches that would be very difficult to use in traditional markets without a truly consistent account. Moreover, as I’ve already said, these systems are all very easy – just a few lines of code. This makes the crypto market perfect for beginner traders who can actually start systematic trading with a very little capital on a market where it’s easy to do so.
So, everything considered, my honest advice is that you start studying the crypto market and building your trading systems because the opportunities they offer are currently unparalleled.
So in conclusion, if you are interested in learning more about the trading method we use and teach at Unger Academy, which is the one that was developed by the only 4-time world trading champion Andrea Unger, then I encourage you to click on the link in the description and watch our free webinar.
Bye bye, and see you next time!
Need More Help? Book Your FREE Strategy Session With Our Team Today!
We’ll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.BOOK YOUR FREE STRATEGY SESSION NOW >>
Hi, I'm Francesco Placci, a professional trader since 2005 thanks to the systematic approach to the markets.
My skills range from trading on index futures to bonds, from stocks to commodities, with a particular focus on volatility and options, which I consider to be among the most versatile and fascinating instruments available to traders.
After an experience with leading Italian credit institutions where I learned the basics of institutional finance, I became a successful independent trader, with great personal satisfaction.
Founder of Algoritmica.pro, in 2019 I joined Unger Academy as head of Research and Development.