Stoic’s strategy is a long-only portfolio of the most liquid altcoins in Binance. These assets are more volatile than Bitcoin and also potentially more profitable than just passive holding.
The strategy is simple in theory: Stoic takes profits when prices rise and cuts losses when prices fall. Yet in practice, that’s where most traders fail: it’s psychologically hard to take money off the table when winning and even harder to close loss-making positions before even larger losses. Stoic automates this and optimizes entries and exits based on quantitative research.
Because Stoic’s current strategy is long-only, during a market correction, it will also post temporary losses. Yet the strategy should cut losses quickly, decreasing the depth of the drawdown when compared to manual trading.
Stoic has a special feature to minimize losses even more during the bear market: hedging. You can select the percentage of your portfolio which you want to store in USDT all the time and secure those funds. On the other hand, you can release all of your portfolio into the Strategy to follow the more intriguing path.
In the current market condition to maximize profits, Stoic recommends USDT hedge at 30%.