AlphaDex v2.0 Preview (1) : Auto-staking and Strategies
In AlphaDex v2.0, the contract can auto-stake for you in every round and:
- Saves huge amount of gas for traders.
- No need to click buttons for every round.
- Ensure there will always be stakes for every round.
And if you are in auto-staking vaults, the experience is more like leveraged trading, instead of binary options. Because you are only risking a small amount of your assets in every round. More on that later.
There will be four basic vaults for four basic strategies:
- BULL. Stake 3% of assets being bullish every round.
- BEAR. Stake 3% of assets being bearish every round.
- MOMENTUM. Stake 3% of assets following the latest trend every round.
- CONTRARIAN. Stake 3% of assets against the latest trend every round.
When sync( ) is called for each round, the contract will compute everything and auto-invest vault assets according to their strategies.
From the above simulation on ETH-USDT, staking in the BULL vault (GREEN curve) may give you better returns than simply HODLing (BLACK curve) in a bull market.
The Sharpe ratio in 3 years for ETH-USDT is improved from 0.14 to 0.67. Therefore AlphaDex is even better than leveraged trading, which can’t change the Sharpe ratio.
Moreover, you can also one-click enter & exit & switch vaults.
The four vaults will automatically trade against each other in every round, which will be an interesting sight to see.
We will continuously monitor and tune parameters (including the payoff model) to ensure all vaults are viable in the long run.
AlphaDex v1.0 is at https://www.alphadex.org/ and we will begin testing of v2.0 soon.