During the ETH Taipei event, mainstream cryptocurrency exchange BitMEX and Chain News jointly hosted the first offline “Introduction to Quantitative Trading Workshop.” The workshop was conducted by BingX MMS from DA Capital, Doublewan from ChaoxResearch, and the BitMEX team. They discussed the structure of quantitative strategies and the determination of various indicator parameters, providing users with a clear understanding of developing their own quantitative trading strategies.
Table of Contents
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BingX MMS on the structure and design of trading
Doublewan explains the meanings of various parameters
How to generate quantitative strategies
How to evaluate quantitative strategies
BitMEX: Users return to enjoy customized fee discounts
Keeping up with the latest in the crypto market
Users return to enjoy customized fee discounts
Recommend a friend and receive 5,000 BMEX tokens
BitMEX: Trading and connecting communities
About BitMEX
With over 7 years of experience in cryptocurrency trading, BingX MMS has been involved in arbitrage, spot trading, and contract trading. He currently focuses on designing quantitative strategies using traditional financial indicators such as MACD.
He first divides the development of quantitative strategies into frontend and backend. The former includes the structure and parameter design, while the latter involves subsequent operations and optimization. He also proposes three important elements for trading:
1. Trading strategy
2. Psychological control
3. Risk management
BingX MMS emphasizes that the number of trades, profit-to-loss ratio, and position control are key factors to consider in quantitative trading. He believes that a quantitative strategy should have a sufficient number of trades, with at least 1,000 trades at a 5-minute interval or 100 trades at an hourly interval to be considered valuable.
In response to the question of how to determine whether a quantitative trading strategy is effective at certain times, BingX MMS suggests analyzing both news and data. When facing unusual losses, he advises comparing various factors and conducting manual reviews to identify potential causes.
As the founder of ChaoxResearch, Doublewan not only explains the meaning of multiple parameters frequently seen in trading, but also implements API data collection from various exchanges.
He first clarifies the difference between trading and investment, pointing out that not everyone is suitable for quantitative trading. Trading aims to profit from short-term price fluctuations using news and data, while quantitative trading requires a longer period of time to prove its effectiveness.
Doublewan states that quantitative trading involves using mathematics and statistics to repeatedly perform the same action under positive expected value.
He also cautions that there are many quantitative strategies designed based on data such as price-volume relationship or funding rate, and the key is how to extract other data or design different strategies from well-known data.
Doublewan categorizes the quality of quantitative strategies from the perspectives of risk and return, emphasizing that strategies designed based on these two directions are neither good nor bad, but simply have different goals.
He also highlights several important parameters to consider when creating or evaluating strategies, as well as data that is often overemphasized and indicators that are often overlooked, providing his own standards:
Important parameters:
– Profit and loss chart: The line should steadily move upwards
– Maximum drawdown: Within 5-20%
– Volatility: Within 15-30%, lower is better
– Sharpe ratio: Above 0.8-1.5, higher is better (high-frequency strategies require 3-6 or above)
Parameters that are often overemphasized:
– Win rate
– Returns
Indicators that are often overlooked:
– Rationality of the core logic of the strategy
– Time span: At least below the 4-hour level, more samples are better
– Overfitting: Too many or too complex strategy parameters resulting in overly precise adjustments, making the strategy unable to predict future results effectively
At the end of the event, BitMEX’s Wendy, the business representative for the Chinese market, announced the recent activities of BitMEX and upcoming updates:
“In the coming months, we will gradually introduce new services or features such as trading bots and hybrid margin to provide users with higher capital utilization. Currently, the ‘XBT Wizard’ game, which predicts the rise and fall of BTC, and the ‘Guild Trading Competition’ where users can easily achieve targets and receive rewards, are both ongoing.”
As a legendary exchange with over 10 years of history, BitMEX has not lost any user funds since its establishment in 2014, and continues to disclose its reserves and asset proof to users. While ensuring the security of funds, BitMEX provides users with diverse derivative trading options with lower margin requirements, and also focuses on product updates and promotional activities:
“In the rapidly changing crypto market, BitMEX continues to keep up with market trends and has launched innovative products, including the first ‘Pre IEO Contract’ – ETHFI Futures Contract, as well as the perpetual contract for the popular memecoin SLERF.”
It is worth mentioning that from now until March 31st, users who have not traded on BitMEX since May last year can apply for customized fee discounts by submitting screenshots of their “BitMEX account ID, competitor exchange fee schedule, and 30-day trading volume” to BitMEX’s official email. The fees will be discounted based on the conditions and rates of the submitted exchange. Additionally, BitMEX offers a limited-time referral reward where users can receive up to 5,000 BMEX tokens and up to a 20% commission rebate for successful referrals.
BitMEX, which has been focusing on education and community activities recently, successfully gathered the Taiwanese community and injected vitality into the market during the “BitMEX Returns to Taipei” event held during the Taipei Blockchain Week in December last year.
This workshop, jointly organized by BitMEX and ABMedia, not only provided Taiwanese users interested in cryptocurrency trading with a wealth of professional knowledge but also brought together and promoted interaction among various communities and industry enthusiasts, allowing them to share their strategies and market outlook. As the driving force behind this event, BitMEX once again showcased its reputation for innovation, security, and deep liquidity in derivative trading.
BitMEX was established in 2014 and provides a professional trading platform for users to engage in cryptocurrency derivative trading. Our platform offers low latency, deep liquidity, and the highest level of security and flexibility. We support derivative contracts for over 65 different cryptocurrencies, as well as spot trading for 11 currency pairs, and free conversions of over 30 cryptocurrencies in the wallet.
BitMEX is known for its innovative products, including the most popular cryptocurrency trading product, perpetual swaps. Our platform stands out in the global exchange market due to its reliability, security, and continuously innovative cryptocurrency derivative products.
If you want to receive the latest updates from BitMEX, please join our Chinese Telegram community or follow us on IG @bitmex_zh for timely information.
This article is provided by the official source and does not represent the stance or investment advice of this platform. Readers must conduct their own careful evaluation.
