Product Information
Bottom Feeder
Type:
Algorithmic Trading Vault
Historical Data:
Win Rate:
+71%
Worst Day:
-4.4%
Max Drawdown:
-12.4%
Compounding Annual Growth Rate:
+25.9%
A Bit About Bottom Feeder
Bottom Feeder is a mean reversion strategy developed by Justin Wise and Alexander Pearson in the winter of 2019. It's designed to take long trades during *extreme* oversold conditions in the markets, utilizing the Average True Range to set a volatility-adjusted stop and take profit.
The strategy adjusts position sizing based on distance to the stop loss to limit risk to 1% of Vault funds for any given trade.
The entry signals are generated by seven heavily-modified instances of the Mynx oscillator, itself developed by Justin Wise. These modifications were applied to highlight instances of historically-significant oversold conditions for USD(T)-paired crypto markets.
By using multiples of the current volatility data for the markets, the strategy is designed to have enough edges on the market to win substantially more frequently than a random entry-exit system.
The Bottom Feeder strategy has been profitably running non-stop on several different USDT-paired crypto assets for close to 3 years. It features 71.42% win rate, with an average Risk/Reward Ratio of 0.68.
From July 2020 to July 2022, Bottom Feeder entered 206 USD/USDT Quoted Positions, of which 143 were winners. Its average profitability from inception is 25.9% CAGR (compound annual growth rate). This average profitability includes the most recent strong, bear market downtrend, which was rough on the strategy. Going forward, this strategy is expected to outperform the 25.9% CAGR in the near to mid-term.
Algorithm History
Algorithm Created
Winter 2019
27 Months Of Data
August 2020 - November 2022
Going Live On EOS & Polygon
December 2022
Alexander Pearson & Justin Wise work together to test several algorithmic strategies. They use personal funds with a private account to track its effectiveness live in the markets and collect data.
After winning 21/27 months, 77% success per monthly time frame, and winning 71% of the trades during that time, while successfully preserving capital under extreme market conditions during the fallout of LUNA & FTX, the Tetrad Protocol team decide to make Bottom Feeder the flagship product.
After years of live testing, months of testnet successes and creating a fully automated deposit, accounting, algorithmic trading, withdrawal and distribution model, Tetrad Protocol decides to go live at Blockchain Week Puerto Rico December 5th 2022.
De-risked handsfree cryptocurrency software
Providing safety & simplicity to the user
