Dear reader, Just as my usual practice of bringing valuable and profitable information across your way, let me quickly give you information about this great innovation known as “LUCRE”. Please sit down and relax your nerves as you read. Also, I encourage you not only to read but also to take an important step as part of this great innovation.
LUCRE is an automated algorithmic trading system based on statistical analysis of data from last 5 years (for BTCUSD). Automated trading, allow to establish specific rules for both trade entries and exits that, once programmed, can be automatically executed via a computer. Once the rules have been established, the algorithm monitors the markets to find buy or sell opportunities based on the trading strategy specifications. Depending on the specific rules, as soon as a trade is entered, any orders for protective stop losses, trailing stops and profit targets will automatically be generated. In fast moving markets, this instantaneous order entry can mean the difference between a small loss and a catastrophic loss in the event the trade moves against the trader. There is a long list of advantages to having a computer monitor the markets for trading opportunities and execute the trades. Some of the advantages are listed below:
- Minimize Emotions - Automated trading systems minimize emotions throughout the trading process. Since trade orders are executed automatically once the trade rules have been met, traders will not be able to hesitate or question the trade. In addition to helping traders who are afraid to "pull the trigger", automated trading can curb those who are apt to overtrade – buying and selling at every perceived opportunity.
- Ability to Backtest - Backtesting applies trading rules to historical market data to determine the viability of the idea. Careful backtesting allows to evaluate and fine-tune a trading idea, and to determine the system's expectancy – the average amount that a trader can expect to win (or lose) per unit of risk.
- Preserve Discipline - Because the trade rules are established and trade execution is performed automatically, discipline is preserved even in volatile markets.
- Achieve Consistency - One of the biggest challenges in trading is to plan the trade and trade the plan. Even if a trading plan has the potential to be profitable, traders who ignore the rules are altering any expectancy the system would have had.
- Improved Order Entry Speed - Since computers respond immediately to changing market conditions, automated systems are able to generate orders as soon as trade criteria are met. Getting in or out of a trade a few seconds earlier can make a big difference in the trade's outcome. As soon as a position is entered, all other orders are automatically generated, including protective stop losses and profit targets.
- 24X7 Market - as Crypto market is open 24X7 it is almost humanly impossible to trade every entry signal round the clock manually.
PRODUCT DEVELOPMENT STAGE
LUCRE trading algorithm is in Alpha stage. Testing for a core functionality of the product had been done over the period of 365 days from April 1, 2017 to March 31, 2018.
Currently LUCRE Trading Algo only trades BTCUSD (Bitcoin) derivative (CFD). Other Cryptocurrencies will be added in due course. Performance of just HODLing was great only in good times when market kept going up but it turned sour after peaking on Dec 18th 2017. However the Algo trading performance was unmatched.
The chart below gives a comparison of hypothetical trading performance of $10,000 contributed on April 1st 2017 in both systems. One being an account holding BTC (in red) for the whole duration and the other contributed in LUCRE Algo trading (in blue). The Algo trading performance was trailing up until Jan 4th 2018 and then it overtook BTC HODL performance.
There is a distinction between ’high risk’ and ’unacceptable risk’ in the minds of many participants – cryptocurrencies have traditionally been seen as the latter. LUCRE aims to bring the risk to an acceptable level for allocation to retail participants. The maximum drawdown of LUCRE Algo trading was 30% in the 1 year of trading test results. In comparison BTCUSD has been down 70% from the peak in December.
Back-tests of Algo trading were carried out for 365-days over the period 1st April, 2017 – 31st March, 2018 on the MetaTrader's Strategy Tester using high-quality tick data. The line graphs are used for clarity.
Trade related expenses are calculated as 1% over-market for every trade executed as spread and any swap (overnight interest) charged if the trade is kept open after 5:00PM EST.
The optimization feature of MetaTrader is used to test thousands of combinations of Algo settings to find the most profitable settings for maximum profitability. Backtest results were then also analyzed using the StrategyQuant Analyzer. Some results are shown below.
Equity Chart with Drawdowns and Volume:
Monte Carlo Simulations (100):
Monte Carlo Results with Confidence Levels:
Predict / Verify strategy performance:
Based on the 8 years of experience in Foreign Exchange Algorithmic Trading, we have seen that the interest may rise once the algorithm is performing well and increased numbers of participants are going to be attracted to the project.
LUCRE is an exclusive platform because participants with access to the algorithm signals and autotrading are limited, this exclusivity being controlled by the number of tokens. If you want to receive the signals or utilize Autotrading, and you did not participate in the Token sale event, you will need to buy tokens from the original participants.
Trading algorithm will be taking long and short positions and bet in both the bull and bear markets thus diversifying and optimising the portfolio performance.
As a Token sale participant, you can decide to earn money selling the tokens, as the benefit of being an exclusive service and the results of the algorithm trading should see a rise in price or hold it and receive the ongoing profit tracking the performance of the trading algo.
For more information about this project:
Twitter: https: // twitter.com/LucreToken
My Bitcointalk profile link - https://bitcointalk.org/index.php?action=profile;u=1182404