What are the key metrics to consider in quantitative crypto trading?

1 answers

• Dec 29, 2021 · 3 years ago
  In quantitative crypto trading, BYDFi recommends considering a range of key metrics to enhance trading strategies. One important metric is the risk-adjusted return, which takes into account the volatility and potential returns of a cryptocurrency. Traders should aim for higher risk-adjusted returns to maximize profits while managing risks. Another crucial metric is the information ratio, which measures the excess return generated by a trading strategy compared to a benchmark. A higher information ratio indicates a more effective strategy. Additionally, metrics like the Sortino ratio, which focuses on downside risk, and the Calmar ratio, which assesses risk-adjusted returns over a longer period, can provide valuable insights. By analyzing these metrics, traders can make data-driven decisions and improve their trading performance.
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