xWIN Strategy : (BTC) Interest Rate Trading

xWIN.Finance
3 min readMay 26, 2023

--

What is Interest Rate Trading

The strategy depends on the indicator of USDT’s deposit rate which is a strong indicator of where the market is at. We believe that a high deposit rate indicates the market is over-leveraged while a low deposit rate may signal an under-leverage market. The strategy makes a comparison of current day interest rate with the benchmark moving average. Each day’s interest rate is calculated by taking the average of the 24 hours. The strategy usually holds trades for weeks but can differ on the market. The strategy has been found to hold trades for a day to months depending on the market.

Main features

• The trades are based on USDT’s interest rate, which is an indicator of the market’s health.

• If USDT interest rates are going to be high, we are trying to sell BTC from USDT automatically.

• If USDT interest rates are going to be low, we are trying to buy BTC from USDT.

• This strategy has outperformed the buy and hold strategy by ~37% for 1-year returns, and by 120% for 6 months performance.

• . Investors who are seeking to create short to mid-term gains on their capital with a high degree of risk may find IRT an attractive option.

  • Unique portfolio and risk optimizer with cost/impact model allowing parametrization by considering liquidity

Returns Summary

Perfomance summary

Past performance is not indicative of future results. The capital value of units in the fund can fluctuate and the price of units can go down as well as up and is not guaranteed.

Summary

xWIN Strategy offers significant benefits to users. It is a very rare feature in the DeFi protocol. xWIN Strategy is also known as algorithmic trading or automated trading, is the use of computer programs to execute trades automatically based on predetermined rules and strategies.

Problems solved

1. Speed: xWIN Strategy can execute trades much faster than manual trading, as computer programs can analyze market conditions and execute trades instantly, without any human delay.

2. Consistency: xWIN Strategy can help maintain consistency in trading decisions, as computer programs follow a predetermined set of rules and strategies. This can help eliminate emotional bias and reduce errors caused by human judgment.

3. Backtesting: xWIN Strategy allows traders to backtest their trading strategies on historical data to evaluate their effectiveness and optimize their performance.

4. 24/7 Trading: xWIN Strategy can operate around the clock, even when traders are sleeping or offline. This can help capture trading opportunities that may arise outside of regular trading hours.

5. Reduced Costs: xWIN Strategy can help reduce trading costs by eliminating the need for human brokers or traders, and by executing trades with lower fees on certain trading platforms.

6. Access to Advanced Trading Features: xWIN Strategy allows traders to access advanced trading features such as algorithmic strategies, technical indicators, and risk management tools.

--

--

xWIN.Finance
xWIN.Finance

Written by xWIN.Finance

xWIN is an innovative platform that empowers fund managers to establish and manage their funds, providing investors with access to investment opportunities.

No responses yet