📊The Algorithms
Last updated
Last updated
The trading algorithms available on SuperBots come from two main sources:
UpBots/SuperBots in-house team: Our trading and algorithm development experts design and create powerful and reliable algorithms based on their extensive knowledge of the market and trading techniques.
Exclusive third-party partners: We work with trusted third-party partners who have expertise in developing trading algorithms. These partners provide exclusive algorithms for SuperBots users.
Algorithm selection process
Each algorithm offered on SuperBots goes through a rigorous selection process to ensure its performance and reliability. Here are the key steps in this process:
Quality control: Submitted algorithms are thoroughly quality controlled to ensure that they are not repainted (i.e., they do not change past results), that they are not overfitted (i.e., they are not overly optimized for a specific data set), as well as more than a dozen other tests performed.
Historical performance: Algorithms are tested on historical data to verify their performance and consistency over time. We evaluate their ability to generate consistent profits and minimize the risk of losses.
Quarantine : A quarantine ranging from 1 to 3 months is imposed on the algorithms to test them in reality. As in the real world, it is difficult to create an algorithm that generates profit, it is during this test that many algorithms are failed, which is why SuperBots only offers a limited number of vaults.
Maximum Drawdown (MDD): We pay particular attention to evaluating the MDD of the algorithms, which measures the maximum loss incurred by an investor over a given period. A low MDD indicates that the algorithm has a better ability to manage risk and preserve investors' capital.
Adaptability: Selected algorithms must be able to adapt to changing market conditions and adjust their trading strategies accordingly.
Regulatory Compliance: Algorithms must comply with current regulations and industry standards to ensure user safety and avoid legal issues.
A: The difference in the number of available algorithms on SuperBots compared to UpBots can be primarily attributed to two factors:
Available tokens: Being on DEX and not centralized exchanges, we have less latitude on traded tokens. Indeed, not all tokens are on BSC, or in sufficient quantity.
DEX liquidity: SuperBots' algorithms are designed to operate on decentralized platforms (DEXs) which typically have lower liquidity compared to centralized platforms for small tokens. Low liquidity can result in slippage (i.e., a discrepancy between the expected price and the price at which the transaction is actually executed). To avoid this, SuperBots restricts the number of algorithms to only work with tokens that have sufficient liquidity on DEXs.
In summary, the rigorous selection of tokens and the limitation of algorithms on SuperBots aim to protect users and provide them with the best trading opportunities while minimizing risks.
A: The algorithms on SuperBots are continuously monitored. In case of alpha decrease, developers are contacted to see their optimization and improvement strategy. In case of validation, the algorithms can be updated. Our team of experts diligently analyzes algorithm performance to ensure optimal results for our users.
A: Yes, SuperBots encourages users and the community to submit their own algorithms for potential inclusion on the platform. Each submitted algorithm undergoes a thorough review process to ensure its performance, reliability, and security before being approved for use on SuperBots.
A: SuperBots takes multiple security measures to protect the integrity of its algorithms. These include encrypting the servers where the algorithms are stored, utilizing secure smart contracts for trade execution, and performing regular audits and updates to maintain a high level of security.
A: If an algorithm consistently underperforms or is no longer effective due to changing market conditions, SuperBots may choose to remove it from the platform. We continuously monitor the performance of all algorithms to ensure that only the best-performing ones are available to our users.
A: Yes, users can choose to allocate their capital to multiple algorithms or vaults on SuperBots. This allows for diversification and the ability to spread risk across various trading strategies. Always consider your risk tolerance and investment objectives when selecting algorithms.
A: SuperBots charges a performance fee using a high-water mark system, which means that we only charge fees when your investment surpasses its previous highest value. This fee structure aligns our interests with those of our users, ensuring that we only make money when you do. Additional fees may include trading fees and withdrawal fees.
