Performance Analysis

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

The strategy shows a reasonable net profit of 88.58% and an annualized return (CAGR) of 28.17%. However, the Sharpe ratio of 0.258 is below the desired threshold for crypto investments, indicating relatively lower risk-adjusted returns. The maximum drawdown of 36.99% is within acceptable limits, yet the volatility is moderately high at 50.8%. The strategy's profit factor of 1.172 suggests mild profitability per trade.

Strategy Viability

Based on the data provided, the strategy has room for improvement in terms of viability for real-world trading. While the net profit and maximum drawdown are within reasonable limits, the low Sharpe and Sortino ratios raise concerns about risk-adjusted returns. The strategy appears to perform optimally under specific market conditions, and a detailed assessment of these scenarios could help identify its strengths. Comparing this to industry benchmarks may offer further insights, although the strategy does face challenges in risk-adjusted performance.

Risk Management

The current risk management approach limits significant drawdowns with a max drawdown of 36.99%, but opportunities exist for enhancement. Consider addressing these areas:

• Reducing the leverage used can lower the maximum drawdown further.
• Improving the Sharpe ratio by adjusting position sizes based on risk assessment.
• Incorporating more robust stop-loss mechanisms and volatility management practices.
• Monitoring and managing exposure to large adverse trades, as indicated by the largest losing trade percent.

Improvement Suggestions

To enhance the strategy’s performance and robustness, consider the following recommendations:

• Optimize strategy parameters to improve risk-adjusted returns, targeting a higher Sharpe ratio.
• Incorporate additional technical indicators to refine trade entries and exits.
• Conduct rigorous out-of-sample and forward-testing to validate strategy robustness across varying market conditions.
• Refine the risk management framework using more dynamic allocation and broader diversification techniques.

Final Opinion

In summary, while the strategy demonstrates potential with a positive net profit and controlled drawdowns, its risk-adjusted performance as indicated by the Sharpe and Sortino ratios suggests room for improvement. Ensuring a higher consistency in returns and enhancing the risk management framework are crucial steps forward.

Recommendation: It is advisable to modify and optimize the strategy, coupled with further testing to enhance its viability. Implementing the suggested improvements could potentially lead to a more robust and higher-performing strategy suitable for real-world trading.