During the past couple of years, I’ve been building and running my own automated cryptocurrency trading strategies. While I am not as profitable as my naive past-self imagined, I did discover a few things that helped me grow, and ultimately change how I perceive and approach the markets.
I got into automated trading because it is, in my opinion, a more sustainable way to tackle the markets. It lets me run a strategy that generates order actions backed up by concrete data, and position sizes calculated with focus on the risk, rather than the reward.
I started out by coding a simple trend following strategy, one from the turtle traders to be exact. I would manually modify the settings, and that would change the results but ultimately, it was a simple strategy that decided when to buy or sell based on the highest high or the lowest low.
While the strategy was profitable for a few select timeframes, the overall performance was not worth all the effort.
Being tied to a single strategy was just not going to work. I needed a platform that could help me build strategies with as little friction as possible. I wanted to abstract away all the technicalities of implementing a logic based system, and focus purely on discovering and testing new strategies.