Coinrule has added new strategies that not only allow traders to protect their portfolios, but enable them to profit during downtrends.

LONDON, UNITED KINGDOM, July 11, 2022 /EINPresswire.com/ -- The most recent crypto bull market first erupted after the Covid March 2020 crash. In the subsequent 19 months the total market capitalisation of crypto grew by 2,700% - from a meagre $108 billion and reaching its peak in November 2021 at a colossal $3 Trillion. In that timeframe traders were rewarded with buying dips and hodling their tokens, with expectations prices would continue rising as enthusiasm and money continued to flow into the market pushing price targets higher. In today’s market, these emotions seem like a whole world away with bitcoin approximately -70% from its $69,000 all-time high. The previous approach of buying retracements in the hopes of coins going higher is no longer profitable in these market conditions - forcing traders to take a different approach.

Oleg Giberstein, Co-founder and COO of Coinrule (https://coinrule.com/crypto-trading-bots/) an automated crypto trading bot platform, suggests that many crypto traders and investors have not experienced these market conditions: “We have had hundreds of thousands of traders join Coinrule throughout the bull run, with their strategies mainly being focused on buying low and selling high. This principle works well when the market is trending upwards but fails when it is trending downwards. A lot of users who join us are new to trading and investing and have only experienced the market going up. When the market does turn bearish it can be a surprise, psychologically and financially, as they have never experienced extended downtrends with little knowledge of how to trade them. When not utilising automated trading, this change in market conditions can lead to poor decision making as emotions are now involved and ultimately resulting in an increasing likelihood of losing money.”

Oleg Giberstein continues, stating that Coinrule has a wide selection of trialled and tested pre-made templates that users can simply select and immediately start trading with, resulting in traders not having to come up with their own strategies. “We are always experimenting and looking for new templates to add to our template library. We initially start off with an idea that could work in current and potential future market conditions. We then back test it using historical data of a large selection of coins and calibrate the strategy to ensure it has been profitable in the past during similar market conditions as the market is currently experiencing. Once the strategy is profitable and beats buying and holding, or just holding cash in a downtrend, we will then build the strategy using our rule builder and start trading it on the market using different exchanges. Once we are happy with how it performs, we will then release it for our users to trade with.”

Giberstein details that over the past several months Coinrule has been dedicated to building strategies that are focused on profiting from downtrends and protecting traders’ portfolios during them as well. “We started noticing the market turning at the end of 2021, so we started developing a new range of templates focused on protecting traders’ portfolios and also profiting by shorting, the process of selling and buying back lower. These rules are designed using indicators and include the likes of moving averages, volume and the relative strength index, along with price movements within certain periods. These rules have been working well in these market conditions as they are designed to trigger and sell coins based on indicators displaying bearish conditions and then buy the coins back lower for a profit.”

When Giberstein was asked about market conditions that could transpire in the future, he suggested that there may be a period of indirection where there will be no clear trend. “We are not certain of how long the downtrend will last, in 2018-2019 we had periods of several months where there was no trend at all, but we have also created templates that perform well during these accumulation periods where markets trade sideways with no clear direction, for example our Grid Trading strategies. We also have several templates that are related to dollar cost averaging where coins can be bought from every few minutes up to every month. This is ideal for hodlers who want to acquire more of their long term holds without having to press a button for months.”

Gabriele Musella
Coinrule Ltd.
+44 2035297920
email us here
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