Kronos Capital — Performance report — April 2023
In April, we faced significant challenges, which resulted in some losses. The market started strong, pumping up to a high of around 30k, causing prices to stall and consolidate. After two successive partial take profits, the price of Bitcoin began to reverse aggressively on March 28th, resulting in the closure of our ongoing short position and a buy signal in the 30k area. Unfortunately, a news event about MtGox seizing BTC led to panic and a sudden 10% drop in the price of Bitcoin within 15 minutes. This resulted in a 5% loss for us, as our algorithm considered the move as selling pressure and entered a short position at the 4H candle close.
However, the news turned out to be a hoax, and the price quickly reverted back to where we had gone long, stopping us out for another 5% loss within the span of an hour. Our algorithm failed to catch this due to our filters, which are designed to avoid consolidation zones using horizontal levels such as support and resistance. We do not take trendiness into account, as it is difficult to automate and often contradicts our S/R logic. As a result, we rejected off a big daily trendline, and our bots got trapped. [See image below]
We experienced a similar drawdown in June 2022, which resulted in a 25% loss for leverage 2 users. However, we quickly recovered by catching a nice short on Bitcoin from 30k to 20k. In response to this recent drawdown, we have been focusing on risk management to reduce drawdown even further while maintaining high performance. We want to assure our clients that we remain committed to providing top-tier trading services and are taking all necessary steps to mitigate risk and ensure long-term success.
Performance since 2023–01 : +6.11% (leverage 2)
Performance since start of the strategy 2021–11–15 : +69.21% (leverage 2)
Buy & Hold of Bitcoin since start of the strategy : -44.12%