DualFutures AI FAQ
1. What is DualFutures AI?
The DualFutures AI is a Futures AI strategy that automatically triggers transactions based on various price and volume indicators. Regardless of the rising, falling, or volatile markets, it automatically captures rebound and callback signals to trigger transactions.
2. What is the applicable scenario of this strategy?
When the upward trend peaks and a callback signal appears, the trading bot will open a short order to earn a short profit; on the contrary, when the downward trend bottoms out and a rebound signal appears, the trading bot will open a long order to earn a long profit.
It is suitable for entering the market after a sharp rise or fall. Since this strategy needs to trigger a trading signal in a specific market, it can obtain good returns in the long run.
3. What are the conditions to activate the trading bot?
The starting threshold of DualFutures AI is relatively low compared to other platform Quant trading strategies, suitable for all users to participate.
Starting the trading bot requires caution, and you should ensure that you have enough trading knowledge and are aware of the risks. Before starting, it is recommended to understand and test the trading bot's features, risks, and limitations in detail. Additionally, one should consider seeking professional financial or investment advice.
4. Strategy floating loss explanation:
The dual-direction strategy may have floating losses under these conditions:
In the case of frequent narrow-range market fluctuations, the frequent triggering of orders of the dual-direction strategy may lead to increased transaction costs and attrition.
Subsequently, a sudden surge or plunge in the market without a proper strategy determination may lead to a strategy floating loss.
5. How to view strategy floating loss?
When the dual-direction strategy temporarily suffers a loss, it is necessary to evaluate the strategy from the standpoint of long-term performance. Here's how to view the situation of temporary strategy loss:
Comprehensive Evaluation: One should consider the overall effect of the strategy, including long-term returns, risk control, and stability. A single temporary loss does not mean that the strategy is unworkable or failed.
Long-term Observation: Holding a sufficiently long observation period allows the strategy to show stable performance amid market fluctuations. A single loss does not represent the overall effect, and you need to conduct multiple backtests and live verification yourself.
In summary, temporary losses are an unavoidable part of trading. The key is to comprehensively evaluate the long-term performance of the strategy and take appropriate risk management and optimization measures to achieve stable and sustainable profits.
6. Will the DualFutures AI strategy generate large losses and liquidation?
Risk and capital management are key factors in the DualFutures AI strategy.
If one does not have a proper risk management mechanism, and the market experiences severe fluctuations, or continuous one-sided trends, then there is a possibility of liquidation. Liquidation usually refers to the loss of a position exceeding the risk level that the account can bear, leading to the exhaustion of account funds.
To avoid the risk of liquidation and all funds being lost, the following suggestions are provided:
Set a reasonable stop-loss level: One should ensure that one has stop-loss measures in place. The stop-loss level depends on one’s risk tolerance and the amount of capital you are prepared to lose.
Diversify your portfolio: Avoid investing all your capital in one strategy. Diversification can help to reduce risk and potential losses.
Keep an eye on the market: Market conditions can change rapidly, so it's important to stay informed and adjust your strategy accordingly.
Regularly review and adjust your strategy: As market conditions change, so too should your strategy. Regular reviews will help ensure your strategy stays effective.
Remember, while DualFutures AI can help automate your trading, it's still essential to maintain an active role in managing your investments and understanding the risks involved.
7. Under what circumstances will the strategy stop loss, and how does the DualFutures AI strategy avoid larger losses?
Generally speaking, the strategy might consider triggering a stop-loss under the following circumstances:
7.1 The price breaks through the stop-loss position: When the price of the trading variety breaks through the preset stop-loss position, the strategy will trigger a stop-loss operation. This is to limit potential losses and protect funds.
7.2 Risk control limits: The strategy may have set certain risk control parameters, such as maximum loss ratio or maximum position limit. When these limits are reached or exceeded, a stop-loss will be triggered to control the risk.
However, one of the design objectives of the DualFutures AI strategy is to manage and reduce risk. It achieves this goal in the following ways:
1. Position ratio control has strict calculation logic;
2. There is a position stop-loss in extreme market conditions;
3. Automatically judge the market conditions based on signals such as market transaction volume and long and short line support pressure.
Although any trading strategy has certain risks when the market fluctuates too much, the DualFutures AI strategy manages and reduces this risk through the above methods.
However, you still need to set these parameters according to your own risk tolerance and remain vigilant during the trading process.
8. Does the DualFutures AI strategy require me to continuously monitor the market?
No, the DualFutures AI strategy does not require continuous monitoring of the market. The purpose of the strategy's design is to automate the trading process by determining based on the market fluctuations, open and close positions, and trade automatically according to the strategy.
Therefore, once you have set the parameters and activated the strategy, it will run automatically, without the need for you to continuously monitor the market.
9. What trading parameters can I set for the DualFutures AI strategy?
The parameters you can set include:
1. Opening Ratio: This is the proportion of funds for the currently opened order.
2. Leverage Multiplier: The multiplier of the opening leverage.
3. Stop-loss Percentage: The percentage of automatic position closing when the loss reaches a certain ratio.
Although the DualFutures AI strategy will automatically adjust the trading strategy, one should still need to determine these parameters based on one’s own risk tolerance and trading goals.
10. My DualFutures AI Bot has been activated, but there are no transaction records?
If the conditions for opening a position have yet to be met, the transactions would not have been executed yet. This strategy uses a variety of price and volume indicators to judge signals for opening long positions at the bottom, or opening short positions at the top, and triggers closing positions, and earning profits based on rebound and pullback signals.
When the uptrend peaks and a pullback signal appears, the trading bot will open a short position to earn short-selling profits. Conversely, when the downtrend bottoms out and a rebound signal appears, the trading bot will open a long position to earn long position profits.
It is suitable to enter the market during consolidations following significant rises or drops. The strategy comes with position management and stop-loss features to greatly reduce the risk of liquidation.
Evidently, the conditions for opening and closing positions are triggered based on specific market conditions, and it's possible that there may be periods of time without opening or closing positions, which is normal. When specific market conditions occur, the strategy will trade, and the win rate will be relatively high. It is recommended for long-term operation.
11. Can users close positions manually? Will the pending order close the position when the Bot is closed?
Users cannot close positions manually. Closing one’s positions would result in closing the trading bot, all other positions, and all floating losses and floating profits altogether.