For all traders, risk management is much more important than taking high profit. I read your whitepaper and it describes HyperQuant will offer a SaaS solution that uniquely provides professional risk control for the crypto markets. So what really is SaaS solution? Its algorithm and Is it function is more different like other trading tools?
Hello there
The main task of risk management strategies is to save one’s money to a maximum extent in loss-making transactions in order to use them in consequent profitable trades. In that extend the program should be Cloud based and have access to a big flow of information, thus SaaS - Software as a service is a perfect solution for that.
Indeed it is different form other trading tools.
There are several risk management strategies to choose from, depending on the investor’s risk tolerance; for example:
1. Conservative strategy
2. Combined strategy
3. Aggressive strategy
Let us take a look at an example with average conditions:
Conditions:
a) Maximum investment risk of a portfolio is 1.
b) Initial position size is 10 contracts.
The strategy earns +10% of profit to the account (1 risk step = max risk):
All three strategies transfer the risk to a zero-point. The position size does not change.
The strategy earns +20% of profit to the account (2 risk step = max risk):
- The conservative strategy transfers the loss risk of +10% to the deposit. The size does not change and amounts to 10 contracts.
- The combined strategy transfers the loss risk of +5% to the deposit. The size is raised to 15 contracts.
- The aggressive strategy does not transfer the risk. It equals 20% of the deposit. The size is raised to 20 contracts.
The strategy earns +30% of profit to the account (3 risk step = max risk):
- The conservative strategy transfers the loss risk of +10% to the deposit. The size does not change and amounts to 10 contracts.
- The combined strategy transfers the loss risk of +10% to the deposit. The size is raised to 20 contracts.
- The aggressive strategy does not transfer the risk. It equals 30% of the deposit. The size is raised to 30 contracts.