Trading System Design and Considerations

We’ve spent considerable time over the years understanding and refining our approach to trading in traditional financial markets and alternatives. We are sharing this post as part of our systematic trading series to help readers understand what it takes to build a trading system that will last.

When designing a scalable trading strategy in cryptocurrency, there are several questions you may want to consider researching:

Questions to ask:

Market Structure

Understanding the market structure can help you identify patterns and trends that can inform your trading strategy.

What is driving Prices?

What are the key drivers of cryptocurrency price movements? Understanding the factors that influence the price of a cryptocurrency can help you make informed trading decisions.

Market Access

What are the best exchanges to use for trading cryptocurrency? Different exchanges offer different trading pairs, fees, and levels of security, so it’s important to choose an exchange that meets your needs.

What are popular strategies?

What are the most popular trading strategies for cryptocurrency? There are many different trading strategies that traders use to make money from cryptocurrency, including trend following, scalp trading, and arbitrage. Researching these strategies can help you decide which one might be the best fit for you.

What are the Risks

What are the risks and potential downsides to trading cryptocurrency? Cryptocurrency is a high-risk, high-reward market, so it’s important to be aware of the potential risks and downsides before you start trading.

What Resources and Tools are there

What tools and resources are available to help you design and implement your trading strategy? There are many tools and resources available to help traders design and implement trading strategies, including charting software, market analysis tools, and trading bots. Researching these tools can help you decide which ones might be most useful for your strategy.