As mentioned above, the opportunities for arbitrage in the cryptocurrency market are no longer so attractive. As for market making strategies, many bots, for example, are guided by data from the EMA and other lagging indicators. The values of such technical analysis tools are based on past history, which is their undoubted disadvantage. Thus, most automated trading systems analyze only in retrospect. In general, the technical analysis of cryptocurrencies is criticized by many, referring to the key role of external, non-market factors. However, critics often overestimate its capabilities, forgetting that analysts' assumptions are only probabilistic. Technical analysis is only an assistant in decision making, not a get-rich-quick tool.
In the conditions of a market that is not so liquid, volatile, prone to manipulation and reacts sharply to “high-profile” news, it is difficult to predict anything in advance. Do not forget that each market participant has his own risk appetite. The latter represents the degree of readiness of a trader/investor to work with high-risk assets. This term is often interpreted as the degree of uncertainty that an investor can afford regarding a possible negative change in the value of his portfolio of assets. All this means that certain trading strategies are suitable for some traders, but completely unacceptable for others. In addition, a bot that has shown good results will not necessarily show high performance in the future. Ignoring this fact can lead to the so-called survivor bias.
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