On Risk Profiles
As many of you probably already know, our algo is always changing and can be configured personally to your own risk tolerance. Here are some notes on some of the most common risk profiles users’ select:
An aggressive profile is front loaded and is aiming, overall, for a 30d profit of 30%. on average it is about 24% profit/month with the highest being 91% and the lowest being 7%. Being frontloaded, it is more concerned with giving each deal more “bang” for its buck through volume, and is looking for rapid closure within tighter margin distribution. averages calculated with 100% or more marginal usage only. calculated over 90d figures averages on this profile. less marginal usage can be useful for ‘force majeure’, ie the almighty hand of global impacts and gross sentiment shift (ie the algorithm cannot anticipate Elon Musk — user can ban coins from their availables though on intake). A person looking to maximize per diem returns would be best served placing the profits in spot in regular intervals, daily or weekly is suggested. Our algorithms measured 1 Standard Deviation is approximately a 33 degree movement from open, but not quite. An aggressive profile almost uses 1 Standard Deviation, but again, not quite, as its basis of distribution for the front load formula. In the Deal Logic, it will fill Max Deal Slots as soon as possible, and use Limit Deal Funds, the second Failsafe, and Negate Deal In Loss, the Third failsafe to being used just as aggressively to manage the account. BTC pair is always left open as a pair for users supreme ability to hedge if they wish to do so, and in addition, if one has Multi-Asset’s on, BUSD pairs may be used to manually hedge as well, margined in your full asset value. For expert users who take things into their own hands, or those who simply wish to use all options available to them in their own growth journey. Manual trading is not recommended over 2% Margin Risk Rating as you will soon trigger Failsafes, impeding the algorithms ability to generate growth for you. Adding additional $ in deals over 5% Risk Rating will result in the final Failsafe being that much closer to execution.
Just because a deal has exceeded the movement appetite of the profile, does not mean that the profile is not working. The profiles have seen between 30,000 to 69,000 and back, and the longest deal closure time is 4 months.
A medium profile is going to use a deviation band that is one standard deviation from the aggressive profile, providing a 33% wider range over coverage over the allocation distribution set. It is looking to add more value to deeper movement while still putting a priority on volume to provide profit. it is aiming, overall, for a 30d profit of 15%, on average it is about 14%, its lowest was 9% and its highest was 32%. averages calculated with 100% marginal usage only. calcuated over 90d figures averages on this profile. less marginal usage can be useful for ‘force majuere’, ie the almighty hand of global impacts and gross sentiment shift (ie the algorithm cannot anticipate Elon Musk — usercan ban coins from their availables though on intake). A person looking to reduce shrinkage from the Third Failsafe and leave monies in for compounding more Max Active Deals in the next cycle would use this. In the Deal Logic, it is looking to capture some market movement to best find profits averaged over a longer timeframe and so will end up hitting the No More Deals Failsafe condition a lot later than Aggressive, providing a dynamic profit-taking environment where the end user would want regular volatility to provide aggressive results, yet is still hoping for volume of closure to provide the biggest results. It will use No More Deals and Limit Deal Funds much more judiciously to provide this experience, with Negate Deal in Loss being a much less seen eventuality — 1 Standard Deviation less. Out of the averaged profiles on this Configuration, no medium profile with less than 100% allocation has engaged [lowest measured was 80% average is 96% ] has hit negate deal in loss in situations where manual trading was ruled out.
A safer profile will use a deviation band that is two standard deviations higher than the aggressive profile, providing coverage that provides a wider range to provide the full profit distribution in each trade, which means that the biggest windfalls will be after shock recovery, up or down. It is aiming, overall, for a monthly profit of 10%. On average it is 8%, its lowest was 6% and its highest was 28%. Averages calculated with a 100% marginal usage only. calculated over 90d figure averages on this profile. less marginal usage can be useful for ‘force majeure’, ie the almighty hand of global impacts and gross sentiment shift (ie the algorithm cannot anticipate Elon Musk, users can ban coins however). A person looking to both reduce shrinkage and compound to greater growth with minimal involvement or thought would select this.
In the Deal Logic, it will seek to fill Max Deal Slots, but keep a Reserve for some movement. This profile, in the entire measurement of time, has not hit the third Failsafe even once in any profile as of yet. Due to these considerations, it logically hits the first Failsafe, No More Deals, at an already generous time, and consequently it is rarer still to see the second and third Failsafes engaged. Ultimately this means that the best profits come from simply the passage of time, as this profile is a rock that the currents of finance have worn to a polish — designed to provide the DAO the Tao of Now. Sublimate your monies to the passage of time and watch as they grow and respond to the market.
Averages measured over moving 90d average; 90d in utilization where automation was the only Strategy. We certainly don’t expect raw numbers to be everyone’s cup of tea, and if you are not a statistician, here are some interesting factoids and qualifiers about our data: The rule of profit is more risk = more profit. The reality of the market is that its dynamic, and we look to meet that by allowing clients to adjust their needs over time. Out of all the measured accounts, only accounts where manual trading has been completely ruled out were allowed. Out of all the measured accounts, the total time measured starts as early as August 1 for some accounts. Yet say a client wanted to start on Aggressive-Long Only, their insistence, on December 1, and then were hit with a crash, a hot war in europe, record inflation, nuclear saber rattling — its not fair to say this last 5 months have been ‘par for the course’ for the Supercycle; the Stock-to-Flow model is comparatively quite bruised at this time because of it. If one takes the most front-loaded configuration, disallows counterbalancing mechanisms, and is then faced with outside pressures? Out of all the measured accounts, the biggest % growth is experienced typically in the under $10,000 category, but the biggest % measured was in 10k. Out of all the measured accounts, accounts that are using between >5000–7000 in utilization of Margin regardless of account size are making about 900 a month on average, highest: $+2832 low: $+435
This reflects that the under 5000 group includes some 2000–5000 users who have varied risk strategies. Out of all the measured accounts, accounts that are using between >7000–10,000 in utilization of Margin regardless of account size are making about 1600 a month on average, highest: $+3317 low: $+688 This reflects that this area is safer to get creative in the when and where strategy and automation meet, and that this cohort has the largest Risk appetite by distribution of profile. Out of all the measured accounts, accounts that are using between 10,000 to 15,000 in utilization of Margin regardless of account size are making about 2100 a month on average highest: $+2553 low: $+1322. This reflects that this area is currently filled with a demographic with a Risk Appetite that can be supported by more max active deals — either through using previous months profits, or authorizing overallocation to take advantage of market sentiment shifting. Out of all the measured accounts, accounts that are using between 15,000 to 20,000 in utilization of Margin regardless of account size are making about 1300 a month on average, highest: $+1733 low: $+553. This reflects that this area has a demographic currently filled with people with low risk appetite, and it reflects in their market strategy. This illustrates that Longevity has a very high value to those currently filling this area.
Out of all the measured accounts, only a few exceed $20,000 in utilization of Margin regardless of account size, and, when polled, uniformly educated our team that they did not wish their stats to be reported as they felt they either identifiable or uncomfortable with it. One reminded us that “a small investment is five years, so check back with me in 2027”. One did consent to their present gain this month when asked: +$6822
To wrap up, accounts over 20k usually illustrates that people who have significant means generally have a longer investment schedule planned and therefore are concerned more with the longevity of their investment with a compounding and reinvestment schedule window of over one year planned. Out of all the measured accounts, users have changed their Configuration on average 2.3 times within the measured 90d period. Out of all the measured accounts, 1/2 of users have never changed their Configuration at all. Out of all the measured accounts, the average account lifetime is 143 days.
About Cyber Drops DAO
Cyber Drops DAO is the industry leader in decentralized algorithmic trading. We are a community driven DAO built on Ethereum. The future is a decentralized, autonomous, and transparent world. Together, we are working to build the Jupiverse.
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