Performance Analysis

Upon reviewing the provided QuantStats report, several key performance metrics highlight areas of interest for the strategy:

The strategy exhibits a solid cumulative net profit of 151.17%, indicating a positive return over the trading period. However, the Sharpe Ratio of 0.252 suggests that risk-adjusted returns are lower than desirable, particularly in the fast-paced and volatile crypto market. The Profit Factor of 1.33 indicates that the strategy earns $1.33 for every $1 lost, which is decent. Importantly, the maximum drawdown is 28.82%, which is within acceptable limits for cryptocurrency strategies, implying some effective risk management in place.

Strategy Viability

This strategy appears to be moderately viable for real-world trading. It demonstrates net profit above the buy & hold approach, which is particularly promising. However, the Sharpe ratio indicates that there is room for improvement in risk-adjusted performance. The decent profit factor and a high percentage of winning trades (66.67%) suggest potential. The strategy might perform best under stable to bullish market conditions, common in crypto markets, though it's vital to assess how it handles high volatility typical in bear markets.

Risk Management

The strategy exhibits a reasonable approach to managing risk as reflected by its maximum drawdown. Nonetheless, there are opportunities to bolster its risk management framework:

• Consider reducing leverage to decrease drawdowns further.
• Implement stricter stop-loss thresholds to minimize losses during adverse market movements.
• Enhance diversification across different crypto assets to spread risk and reduce overall volatility.

Improvement Suggestions

To elevate the strategy’s performance and robustness, consider the following enhancements:

• Optimize trade parameters systematically to improve the risk/reward balance.
• Incorporate additional technical indicators to refine entry and exit signals.
• Expand backtesting to include different time frames and market conditions to assess robustness.
• Refine the algorithm to improve the Sharpe and Sortino ratios by adjusting for better ratio of average win to average loss.

Final Opinion

In summary, the strategy exhibits a positive return with a majority of trades being profitable, although its risk-adjusted performance can be improved. The manageable maximum drawdown suggests solid risk management, but enhancing the leverage and volatility management could further strengthen its performance.

Recommendation: Proceed with further refinement of the strategy, focusing on improving risk-adjusted performance through enhanced risk management and parameter optimization. Conduct further testing to ensure robustness across various market scenarios.