125% APR: Algo-Trading strategy on Waves.Exchange

Algo-Trading is an automated platform that executes market or trading orders that have pre-programmed self-execution prompts. The trading robot that is over a year old has performed very well generating a yearly profit of 100%. To extend their gratitude to the users, the team has introduced the Algorithmic Trading Strategy that incorporates USDT Tokens.


How the Platform Works

The Investment process is similar to that of USDC and USDT. In this strategy, the trader offers liquidity to run Smart Contract that is based on the Waves platform. This enables the trader to be rewarded with ALP (Algorithmic Trading Liquidity Provider) Tokens. The Tokens are asset-based through the Smart Contract. The Tokens equals the shares a trader holds in the Trading pool. Thereafter, the traders' assets are distributed to various Algorithmic Trading Strategies across diverse Decentralized Exchanges such as OKEx, BitMEX, and Binance among others. The liquidity is also diverted to be used by the bots in the platform. Each day's trading results are settled every 24 hours. Each transaction is locked by the trading Robots in the Smart Contract whether Profits or losses. Let us say the trading Bots earned 10,000 USDT in a single day, the same is automatically added to Smart Contract thereby growing the ALP Tokens Value.


To access or withdraw funds, the trader is supposed to revert their Tokens in the Smart Contract then start the process of withdrawing. It will take 24 hours to actualize.


There are two investment strategies in Algorithmic Trading. They are based on profits, and risks involved. They could be moderate or aggressive. Each strategy has its Token. AUSDTLPM is the Token for Moderate Risk, whereas AUSDTLPA Token is for Aggressive Risk strategy.


Risks

There are two types of trading risks in Algorithmic Trading strategies. These are Counterparty and Drawdown Risks. Let us expound further on the two types of risks:


Counterparty Risks - These potential risks are associated with centralized exchanges. They include account suspension, downtime, or withdrawal challenges. The good report is that Waves.exchange has not had such challenges.

Drawdown Risks - The Maximum drawdown amount or value in the investment strategies is different. There is a 30% maximum drawdown in the moderate strategy that is always set as a default. There is, therefore, a Risk of ALP Token fall by the same margin (i.e. 30%). However, the fall cannot go past this margin.


Below is a brief on the process of investing in Algorithmic Trading,

  • First, it is important to understand all the Risks Involved.

  • After understanding, a trader should Deposit USDT in the platform

  • Then scroll to the Algorithmic trading page. After that, the trader should choose the type of risk they prefer and specify the amount to invest.

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