OUR SECURITY LEVELS EXPLAINED
Embarking on the exciting journey of crypto trading is an adventure, and at Helvetic Crypto, we understand that each trader has different preferences and comfort levels with risk.
In this article, we’ll guide you through our carefully crafted Security Levels. These levels were developed with great care to not only offer you choices but also to make it possible for you to trade in the cryptocurrency market with amazingly low risk. Our aim is to give you the ability to customize your AI-Bot’s settings, allowing you to find the perfect balance between the potential for impressive profits and managing risk – all according to your unique preferences and goals.
Overview:
Very low Security – Level 4
Description:
This level is for those who are willing to take on higher risks during market crashes for potentially great profits. The AI-Bot reserves 4 times the base order to execute DCA orders.
Considerations:
Keep in mind that in robust downtrends such as 20% Bitcoin drops, additional capital of up to 30% of your invested capital may be required to ensure the AI-Bot can continue trading successfully. This level is suitable for those comfortable with a more dynamic and risk-tolerant approach.
Moderate Security – Level 10
Description:
This level is for those who are looking for a balanced approach that handles most market crashes. The AI-Bot reserves 10 times the base order to execute DCA (Dollar-Cost Averaging) orders.
Considerations:
Keep in mind that in heavy downtrends such as 40% Bitcoin drops, additional capital of up to 20% of your invested capital may be required to ensure the AI-Bot can continue trading successfully. This level strikes a balance between risk and reward, it’s an excellent choice for traders who appreciate a more controlled yet dynamic approach and want to weather downward trends nicely.
Very high Security – Level 20
Description:
This level is for those who are looking for a very secure approach and don’t mind conservative returns. The AI-Bot reserves 20 times the base order to execute DCA (Dollar-Cost Averaging) orders.
Considerations:
Keep in mind that in total market failure such as 80% Bitcoin drops, some additional capital may be required to ensure the AI-Bot can continue trading successfully. This levels risk is virtually eliminated, it’s an excellent choice for traders who are looking for a savings account like portfolio management.
Explained in Examples: Intro
In the Examples through chart images provided below, key events and actions are marked with white, caps text for clarity. These include crucial moments such as BUY signals, Dollar Cost Averaging (DCA) occurrences, and instances where a DCA was missed due to insufficient funds in Security Level 4 during smaller crashes.
Additionally, each price-line in the chart is described on the right side with white writing, providing insight into the meaning of the prices and Profits needed with an exemplary 5% Take Profit.
Explained in Examples: DCA 4
In the next chart image, the Security Level 4 Bot executes a buy order at an unfavorable market timing. Subsequently, three Dollar Cost Averaging (DCA) orders are triggered, effectively averaging down the purchase price. However, despite these DCAs, the coin’s price continues to decline, failing to reach the desired take profit level.
A potential fourth DCA, triggered at a favorable low point, could have further reduced the average purchase price. This would have positioned the trade to capitalize on the subsequent weak recovery, enabling the coin to achieve its target take profit of 5%.
Unfortunately, the missed opportunity for DCA 4 maintains the average price too high for smaller recoveries to yielding profits and exiting the trade.
Moreover, the DCA action effectively doubles the position size, resulting in a nearly eightfold increase compared to the base order. Achieving a 5% profit with such a sizable position equates to the profitability of eight individual successful trades.
This exemplifies Helvetic Crypto’s innovative risk management approach, ensuring the security of trades, even in adverse market conditions.
In the highest Security Levels, the AI-Bot persists with DCAs, safeguarding nearly every trade, regardless of its initial outcome. This transformative risk management strategy effectively converts the perceived risk of the crypto market into a reliable savings account.
Explained in Examples: DCA 3
The Security Level 4 bot couldn’t afford to do a DCA3 after the DCA2, so it missed a chance to lower the average price and get out of the trade. Because of this, even with that 30% price drop, it needs over 20% increase in price to make a profit based on DCA2 targets.
This shows how hard it is to trade at lower security levels in strong bearish markets.
In comparison, higher security levels allow for more effective risk management. For instance, a bot operating at a higher security level executed DCA3 and is now only 1% away from the take-profit level. Despite the market recovering by only 10% after the 30% drop, this bot is shure to exit profitably now, while being close to reaching even the take profit.
This difference highlights the importance of higher security levels for AI-Traders that want to utilize our AI as a savings account and not worrying about losses.
For the brave traders among you, the lower Security Levels can be just as safe if you never let them run out of capital. If they run out of money you will lose the gains out of recoveries and even may have days with losses.
Our AI system empowers traders to establish secure investment strategies, ensuring capital remains active without succumbing to the risks of sudden market downturns.
Explained in Examples: DCA 1
In the final scenario, let’s consider a new buy where the AI-Bot failed and needs to perform a DCA but has no funds left. Even in bearish markets, the AI-Bot makes new deals and often needs a DCA to achieve the desired profit. When funds are depleted, there is zero risk management left for those trades.
Before the buy could generate even a single percent profit, the market dropped by 13%. At a loss of 7.6%, the first DCA would have been triggered. This DCA brings the target profit within reach. In this example, you can see that the AI-Bot is already back in profit just 13 hours after the price reached its low point.
Additionally, we calculated a Swing Zone from older data than shown in the chart. This is the area where the price encounters strong resistance on both ends. Without the DCA, the take profit is outside the Swing Zone, making it unlikely to achieve that profit.
With a higher Security Level, the AI-Bot would have executed the DCA and averaged the price down. As shown in the chart, the new profit target is inside the Swing Zone, making it very likely to be reached again before potential further price drops. The trade is only 4.8% away from its take profit of 5%, already in the positive. This demonstrates the power of a single DCA during volatile markets, showing that it’s not only old positions bought at market peaks, as shown in the previous examples, but also potential winners on the way down that can turn into lost positions due to insufficient funds.
This further emphasizes the importance of adequate capital allocation and risk management, particularly in volatile market conditions.
Customization and Flexibility:
Helvetic Crypto believes in putting the power in your hands. The ability to customize your AI-Bot’s Security Level gives you the flexibility to align your trading strategy with your financial goals and risk tolerance. Whether you’re an adventurous risk-taker or a cautious investor, our platform allows you to tailor your AI-Bot to exactly the level you desire.
Community Insights:
Joining our Helvetic Crypto community on Discord opens the door to shared experiences and insights. Engage with fellow AI-Traders to discuss the various Security Levels and gain valuable perspectives from all the different setups.
Community support plays a crucial role in enhancing your understanding of these security options and grasping all the different aspects of the setup, that can cater to your precise need of investment strategy.
Conclusion:
We trust this article has equipped you with the necessary insights to make informed decisions regarding our Security Levels, enabling you to select the optimal setup for your needs. Whether you’re seeking the security of a savings account with Security Level 20, aiming for a balanced approach with Security Level 10, or pursuing potentially higher returns with Security Level 4, our Security Levels offer versatile options to align with your trading strategy. While Security Level 4 may appear risky, it remains a robust and secure trading strategy in the cryptocurrency realm.
As you embark on your crypto trading journey with our AI-Trading-Bot, remember to customize your Security Level to suit your unique preferences and goals.
Happy trading!