Overview of the Optimization for Otrading's CAT Strategy

Otrading's CAT Trend Strategy has been validated for profitability and risk control in live trading, but this does not mean it is perfect. There is still plenty of room for innovative optimization. In the process of exploring optimization strategies, it is important to avoid getting overly focused on fine details such as entry and exit points. After all, the win rate, odds, and trading frequency are interrelated, and excessive focus on localized optimization often yields minimal results. Below are the optimization directions summarized from personal live trading experience over the past year, for community reference:

1. Selective Trading Pair

Beginners often choose a full-coin diversification strategy due to operational convenience. While this method helps capture major trends, it involves high trial and error costs, and diversification of positions limits profit growth.

An optimization measure to consider is the implementation of a coins rotation strategy, regularly selecting 10-20 coins with significant trend characteristics from a wide range, or choosing cryptos with greater volatility based on market dynamics. This can enhance positions concentration, reduce overall drawdown risk, and contribute to higher profitability. This approach is relatively aggressive and is more suited to traders who seek high returns and possess a certain depth of understanding regarding asset characteristics.

2. Flexible Position Management

Position management plays a crucial role in the success of a strategy. It involves key issues such as deciding when to increase or decrease positions, allocating capital weights, and responding to changes in volatility.

In an extreme market, timely manual intervention to open positions in advance and take profits in advance to prevent market reversal and profit callback are essential.

Using a "Increase Positions After Profit Orders, Decrease Positions After Losses Orders" strategy can help fine-tune order management. By adopting these measures, it is possible to maintain profitability while effectively reducing drawdown risks.

3. Multi-strategy Synergy for Enhanced Efficiency

Relying on a single strategy is like a lone boat on the sea, making it difficult to keep profits consistently within the ideal range.

To overcome this, it is necessary to integrate multiple entry and exit factors, carefully filtering and selecting using backtest data.

Additionally, combining multiple trading pairs and different candlestick timeframes will create a comprehensive plan. This approach can help steadily increase profitability while effectively reducing capital risk.

In conclusion, optimizing the CAT Strategy requires a comprehensive consider. By selectively choosing coins, flexibly adjusting positions, and integrating multiple strategies, the overall performance of the strategy can be significantly improved, based on personal practical experience.