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February market analysis

Quant is a Wall Street term for an analyst focused on statistical and mathematical models. Only the best of the best can call themselves “Quants” and we asked ours what he thought of the February cryptosphere.💡

Like a seesaw. In simple terms, that’s exactly the way cryptocurrency markets behaved in February. The escalating conflict between the Russian Federation and Ukraine has affected not only cryptocurrencies, but most financial markets.

Prior to the outbreak of the conflict, volatility increased and widespread selling began, both typical signs of great uncertainty and general unease regarding geopolitical developments. However, in the last days of the month, bitcoin miraculously recovered and did a 180. In the last days of February it gained more than 15%.

What did this mean for our trading algorithms? Plenty of opportunities. As in January, algorithms with shorter holding times did better. To give you a glimpse of what such a trade looks like, here’s the “trade of the month”.

The figure shows where the algorithm entered an intraday long position on the XRP/USDT pair. This title is traded in the form of perpetual futures contracts. The trade took less than a day. Part of the profit came from the downtrend the Russian aggression triggered.

On the other hand, the longer-term positions did not fare well. However, as you can see in the figure, short-term positions cover all the risks cryptocurrency market brings perfectly well.

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