The cryptocurrency market has recently plummeted sharply from all-time highs, highlighting the limitations of a purely buy-and-hold strategy during market volatility or bear markets. Systematic trading relies on predefined rules and risk management rather than market sentiment, allowing it to operate independently of overall trends and serving as an alternative approach. This method aims to capitalize on short-term price fluctuations and statistical inefficiencies, potentially offering more stable returns and reducing emotional shocks caused by market crashes.
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The cryptocurrency market has recently plummeted sharply from all-time highs, highlighting the limitations of a purely buy-and-hold strategy during market volatility or bear markets. Systematic trading relies on predefined rules and risk management rather than market sentiment, allowing it to operate independently of overall trends and serving as an alternative approach. This method aims to capitalize on short-term price fluctuations and statistical inefficiencies, potentially offering more stable returns and reducing emotional shocks caused by market crashes.