Patache Steady Strategy Light Dive
Overview
Patache Digital’s strategies are built on a proprietary quantitative algorithm as a base and combined with layers of risk analysis. Patache’s research and products emphasize principal protection and steady, consistent returns while pursuing occasional “home runs”.
The Steady Strategies look for price breakouts and comprises two components: a work horse and a racehorse. The point of the workhorse is to nullify risk, capture a small profit/cover transaction cost and the point of the racehorse is to pursue a larger payoff opportunity.
Mechanics
BTC Long Trade — An example: A long trade is triggered when the market reaches the directional entry level. Two positions on the long side are initiated by accumulating the BTC relative to USDC. Each position is immediately assigned a Target and a Stop (loss). If the market reaches the Target before the Stop, the workhorse BTC is sold for USDC, profit taking. Simultaneously, the racehorse Stop changes to a Trailing stop (see GIF below for a visual on how the Trailing stop follows the price up but doesn’t move down). At this point the economic risk is nullified, a small profit is locked in and the racehorse is pursuing a larger payoff potential.
Horizon
The strategy is expected to capture the majority of any positive price breakouts and will limit losses through its trailing stops. Due to the nature of the strategy, it is designed to be held over a medium to long-term time frame (6 months to a year). At this time the benefits of being in the strategy are expected to emerge.
