CTA bot parameters explained
Bitget is offering two new quantitative trading bots: spot CTA and futures CTA. In CTA bot trading, your parameter settings will directly affect your profit. Understanding the key terms related to the CTA bot and the meaning of each parameter will help users to earn greater profit.
CTA bot terms
1. CTA bot: Commodity trading advisor, or CTA, refers to a type of strategy specifically applied to commodity futures and stock market index futures. Drawing on the proven experience of previous CTA products, we've introduced an index trading system for cryptocurrencies on our bot trading platform to help users better seize trading opportunities.
2. AI bot: Using the grid bot parameters recommended by the system. Recommended parameters are generated by calculating the most suitable parameters for the current market based on a smart algorithm and backtesting of the past 30 days of market data.
3. MACD strategy: Suitable for trending markets. It can be used to track price trends and automatically take profit when the trend ends.
￮ Go Short when the MACD short-term moving average crosses below the long-term moving average (death cross).
￮ Go Long when the MACD short-term moving average crosses above the long-term moving average (golden cross).
4. BOLL strategy: Suitable for flat and oscillating markets. Buy low and sell high, automatically closing positions when the price averages.
￮ Go Short when the price crosses above the upper band.
￮ Go Long when the coin price crosses below the lower band.
1. 30d backtested ROI: Annualized yield based on the backtesting of the past 30 days of market data.
2. Chart period: The candlestick chart period on which the bot is based.
3. Leverage: The leverage that the user invests with. Mainly used to calculate the margin required for running the bot.
4. Maximum drawdown: The largest decline in net asset value from its highest point to its lowest point, with a smaller value indicating a lower relative risk.
5. Trades/win rate: The total trades and profitable trades in proportion to the backtested data.
6. Optimal parameters
￮ Optimal MACD parameters: Fast is the length of the short-term moving average line. Slow is the length of the long-term moving average line. Sig is the length of the signal line.
￮ Optimal BOLL parameters: K is the length of the candlestick chart used to calculate the middle band. N is the standard deviation multiplier used to calculate the upper and lower bands.
7. Total investment: The total amount invested by the user. The entire investment is used as margin.
8. Take profit: When the profit/loss ratio between the latest m ark price and the average entry price is greater than or equal to the position take-profit ratio, the position will be closed at the market price without affecting the bot's execution.
9. Stop loss: When the profit/loss ratio between the latest mark price and the average entry price is lower than or equal to the position stop-loss ratio, the position will be closed at the marke t price without affecting the bot's execution.
Note: Bbot parameters are based on historical data and do not guarantee future profits.
CTA bot trading is a transaction tool. The abovementioned information should not be considered financial or investment advice from Bitget. Returns from CTA bot trading may be affected by the volatility of cryptocurrency prices. You can adjust your CTA bot according to market conditions. Your use of this tool is subject to your unconditional acceptance of all of Bitget's Terms and Conditions. You should be fully aware of the risks associated with cryptocurrency investments and proceed with caution. You agree that all investments on Bitget.com reflect your true investment intent, and you unconditionally accept the potential risks and gains of your investment decisions.