How to use heybit and how to invest in cryptocurrency, what is the average return?

 

Hello everyone!

 

Last time, I introduced Heybit. This time, I will talk about how to invest in cryptocurrency using Heybit and the average rate of return. If you are still unfamiliar with Heybeat, be sure to refer to the previous post.

 

***Please note that this post has no advertising or affiliation at all, and you are solely responsible for your investment. Please be aware in advance that this post is for informational purposes only.

 

1. Heybit's strategy

 

Heybit provides algorithmic trading services by appropriately applying Larry Williams' volatility breakout (short-term trend-following) trading technique to cryptocurrencies. This strategy is actually Larry Williams' favorite strategy, and the legendary story of this man is a man who made more than 1 billion won while trading while giving a lecture on futures trading. It's hard to pay attention to other things while trading, but this person gave a lecture while trading.

 

2. How to set the Heybeat

 

a) Enter an exchange supported by Heybit (Binance, Bithumb, Upbit)

 

Since I use Binance Exchange, which has a low fee, I will explain it based on Binance~

 

b) If you do not have an exchange account, register as a member and if you already have an account, you will receive an API.

 

After receiving the API, be sure to check that withdrawal is not activated and save the API key and secret key! And it is convenient to set up if you exchange it for tether stablecoin (USDT) in advance.

 

c) Go to the Heybit APP or site and create a bot.

 

I'm speaking on a site-by-site basis as the site can get more information and I use a lot of PC!

 

First of all, please visit the Heybit website and register as a member as shown below.

 

Then, the following screen will appear, click “Start Automatic Investing”.

 

Bot Name: Enter any name you want

 

Exchange: Select the exchange you are using (either Binance / Bithumb / Upbit)

 

Strategies selection: Choose among VB+ Safe / VB+ Balance / VB+ Chanllenge in consideration of expected return and MDD (maximum fall)

 

Click "I have an exchange account" for the API you created in advance, and enter your API key and secret key.

 

After filling in, click "Done".

 

Voila! Setting is complete.

 

Now, you can observe the detailed status by clicking on my bot.

 

Once inside, the following screen will appear.

 

Algorithms based on 24-hour quants now operate 24 hours a day for you at “0% cost”!

 

Expected Return and Insights as a Quant Investor

 

1. As for the expected return, you can see that the actual live trading achieved a return of about 6.5% per year. Even those who developed it do not know how the future performance of the newly launched VB+ strategy will develop. Algorithms that create logic in advance and trade according to pre-set rules are operated 24 hours a day, 365 days a year, and the rest should be left to the market ^^. Forecasting the future is the realm of God and past performance does not reflect the future.

 

2. You can comfortably earn about 6% a year, and considering that the domestic bank interest rate is 1% these days, it is judged that it is much better than holding cash. What many people overlook is that the value of money decreases by an average of 2% per year due to inflation.

 

3. Like these days, while money is being sprayed by helicopters due to the corona virus, the public is only noticing it, but the value of money is continuously falling. Among the advantages of running a bot with Binance’s USDT, USDT is linked to the US dollar. In such a situation, the US USD, which is still recognized as a safe asset, is relatively better than the Korean KRW in terms of exchange rate gains risk.

 

4. And it has the advantage of not only having USD, but also using dollars to manage the cryptocurrency market, which has a low correlation with the traditional market, 24 hours a day with an algorithm. If you hold cash for a year, you lose -2% without our knowledge. Even if you take a deposit with an annual interest rate of 1%, if you subtract 15.4% of local income tax and 15.4% of interest tax from 1%, you will actually receive less than 1%, and this is also negative when inflation is taken into account.

 

5. Part of the excess funds are targeted at around 6% with Heybit instead of cash, earning 4% of “real profit” after deducting 2% of inflation. I think.

 

ps. The reason why the performance of my volatility breakout trading script and Heybit is different is that, on average, when Heybit is actually operating, they invest about 10% to 20% of their funds and hold the rest in cash. It focuses on minimizing MDD by mixing various techniques such as volatility control technique and noise ratio technique.

 

Algorithmic trading that I do myself is operating while expecting a bigger return and expecting a bigger MDD (maximum drop) instead of taking more risks. And to spread the risk, we are allocating our assets to the traditional market with low correlation as an all-weather portfolio, and we are investing with a plan to rebalance once a year.

 

As mentioned in Shannon's Restoration of Balance, you can make the return curve smoother by rebalancing to an asset class with low correlation but high volatility and upward slope. I am investing by designing a return curve in which the overall funds steadily upward by mixing the return curves of the beta and alpha strategies further from the asset class.

 

Then everyone fight!

 

Real trading trading log: https://coinpick.com/daily_quant