by Bermudos » March 26th, 2022, 2:38 am
All of these bots work by relying on various time-tested models (historical data).
Pair trading is trading in assets that have a high correlation coefficient (direct or inverse), so the price movement of one asset can be predicted based on the price movement of another asset. For example, in the cryptocurrency market, there is a strong dependence of many assets on the price of Bitcoin - the correlation table shows high values. So, based on such dependencies, you can open opposite positions on related assets, hedging risks. Or, for example, if one asset deviates from its usual trajectory, when it begins to live its own life, you can assume that the relationship will soon be restored, and make a trading decision based on this.
Invest bots are about compiling a profitable portfolio to ensure constant passive income. Bots select multiple assets to invest based on their historical performance and ability to collectively hedge risk. So, they can make a portfolio of high and low risk assets and change their ratio depending on the market dynamics.
All of these bots work by relying on various time-tested models (historical data).
Pair trading is trading in assets that have a high correlation coefficient (direct or inverse), so the price movement of one asset can be predicted based on the price movement of another asset. For example, in the cryptocurrency market, there is a strong dependence of many assets on the price of Bitcoin - the correlation table shows high values. So, based on such dependencies, you can open opposite positions on related assets, hedging risks. Or, for example, if one asset deviates from its usual trajectory, when it begins to live its own life, you can assume that the relationship will soon be restored, and make a trading decision based on this.
Invest bots are about compiling a profitable portfolio to ensure constant passive income. Bots select multiple assets to invest based on their historical performance and ability to collectively hedge risk. So, they can make a portfolio of high and low risk assets and change their ratio depending on the market dynamics.