Example trading setup explained

Depending on your risk tolerance and overall trading account growth goals, there are thousands of possibilities and variations to set up your very first or next and even better trading bot with WizeDec. It would be impossible for us to display all of them, but here is an example setup setup using only cryptocurrencies we have shared on our backtest results gallery.

This picture shows one of the possible trading setups that you can create.

To disperse risk of losing, it is suggested to run WizeDec on multiple tickers simultaneously. Here is an example setup using only cryptocurrencies we have shared on our backtest results gallery.

In the top left of the table, you will find a cell with the text “Maximum open trades”. This shows how many trades does this setup allow to be open at once.

In this example we have used a Low Risk trading setup - “Maximum open trades” is set to 7 - read more HERE.

If the maximum amount of trades is already open, then all following trades and entries for other currencies are ignored until one of the trades closes and a spot opens up.

 

Each row in the table depicts one currency, with the ticker name being in the leftmost column.

For each currency, the profit for each month of the backtesting period is also displayed. However, these results for each currency may not match with the results you would see when you were to backtest a single currency with the same settings. In this combined system, only trades that were actually taken are taken into account. Some trades may be ignored due to the maximum amount of trades being open. The script will then not allow any other trades until one of the open trades has closed.

 

The very bottom row shows the cumulative total capital profit for every month. This cumulative profit takes into account the “Maximum open trades” setting as well, by dividing the total cumulative profit by the “Maximum open trades” value. This is because each trade does not affect your whole equity, but only the size that it has been allocated. If you only allocate a third of your equity to a single trade and that trade gains 10%, then the effect on your equity will be around 3%. This means the “Monthly PnL” value that you see at the bottom of the table reflects the growth of your total capital for that month.

Example setup total capital growth:

2021 June +18.6%

2021 July +7.7%

2021 August +17.7%

2021 September +17.4%

2021 October +11.2%

2021 November +13.5%

2021 December +12%

2022 January +7.8%

2022 February +9%

2022 March +9.5%

2022 April +5.9%

2022 May +15.3%

2022 June +14.2%

2022 July +11.6%

2022 August +5.6%

2022 September +6.4%

2022 October +9.3%
2022 November +10.8%