Performance Analysis

Upon reviewing the provided QuantStats report, several performance metrics stand out that merit attention:

The strategy currently shows some challenges, with a net loss and an unacceptable drawdown of 108.75%. Although the win rate of 78.57% is quite favorable, it hasn't translated into overall profitability due to other factors. The Sharpe Ratio is below the ideal threshold in this context of crypto trading. The Profit Factor indicates more losses than gains.

Strategy Viability

At present, the viability of this strategy for real-world trading is questionable given the negative annualized return and the significant drawdown. While the strategy exhibits a high percentage of winning trades, the losses from fewer losing trades are significant. This imbalance suggests a need for adjustment. It may require a review to determine suitable market conditions where it might perform better.

Risk Management

The high maximum drawdown suggests an area needing significant attention with risk management. The position sizing and leverage used could potentially be adjusted to mitigate risk exposure. Additionally, integrating robust stop-loss mechanisms could help prevent substantial losses from individual trades.

• Consider utilizing less leverage to directly reduce the drawdown impact.
• Introduce stricter risk controls with defined maximum allowable losses per trade.
• Employ volatility-based position sizing to better align with market conditions.

Improvement Suggestions

To enhance performance and robustness, consider the following recommendations:

• Re-calibrate strategy parameters with a focus on minimizing drawdown and improving profitability.
• Explore additional technical indicators that might offer better signals for entry and exit.
• Conduct comprehensive backtesting including different market scenarios to find optimal conditions.
• Evaluate the use of a diversified asset basket to spread risk exposure.

Final Opinion

Despite a high win rate, the strategy's performance in terms of net profit and drawdown requires significant refinement to improve its viability. The risk management framework particularly must be strengthened.

Recommendation: Major modifications and testing are necessary before considering real-world application. Focus on optimizing trade size and leverage to better manage drawdowns, hence turning high winning trades into profitable outcomes.