Performance Analysis

After reviewing the supplied QuantStats report, several performance metrics warrant detailed consideration:

The strategy, unfortunately, illustrates a negative net profit of -72.94% and a Sharpe Ratio of -0.016, indicating a lack of risk-adjusted returns. The Profit Factor of 0.906 suggests the strategy's losses overshadow its gains. The Maximum Drawdown is notably high at 93.5%, which is above acceptable levels even in crypto trading, underscoring substantial exposure to risk.

Strategy Viability

Presently, the strategy does not seem viable for real-world trading. While this approach might have niche applications or could be adapted for certain market conditions, the current metrics do not support its sustainability without significant modification. The high Maximum Drawdown and negative returns suggest that further optimization or a redevelopment of the core tactics is necessary.

Risk Management

The strategy's risk management appears inadequate, as evidenced by the high Maximum Drawdown and considerable volatility. Potential improvements in risk management include:

• Reducing leverage to lower the drawdown and overall risk.
• Incorporating stop-loss and take-profit mechanisms to better manage unpredictable market movements.
• Enhancing diversification of trading instruments to spread risks.

Improvement Suggestions

To boost the strategy's effectiveness and reliability, consider the following recommendations:

• Reassess and optimize the strategy parameters to improve profitability and manage risk better.
• Integrate more robust technical indicators or machine learning techniques for improved trade decision-making.
• Conduct thorough sensitivity analysis to refine strategy resilience under varying market conditions.
• Engage in extensive back-testing and real-time forward testing to ensure the strategy's robustness against diverse market scenarios.

Final Opinion

In conclusion, while the strategy is currently not performing optimally, there is potential for improvement through comprehensive evaluation and rigorous testing. The need to manage risks by reducing leverage, among other strategies, is critical.

Recommendation: Implement suggested improvements and conduct further research and testing. Adjustments to the strategy are crucial before considering real-world application, especially focusing on risk management and optimizing returns.