Top Lead Trader Tips: Cryptoxn on Leveraging Trading Algorithms
Main TakeawaysÂ
The third installment in the Top Lead Trader Tips series continues to deliver valuable insights from top performers on the Binance Copy Trading platform.Â
With six years of trading experience, Cryptoxn is a seasoned API trader specializing in altcoin countertrend strategies, with a focus on risk management.
In this interview, Cryptoxn shares his trading strategies and philosophy, providing actionable tips for both new and experienced traders aiming to enhance their performance.
Welcome to the third interview in our Top Lead Trader Tips series, where we continue to bring you invaluable insights from top traders on the Binance Copy Trading platform.
In todayâs interview, weâre excited to feature another exceptional Lead Trader who has stolen the spotlight in the copy trading community. Today, we have the pleasure of introducing Cryptoxn, an API trader with a strong track record on our platform.
Whether youâre just starting your crypto journey or looking to sharpen your strategies, this interview will offer actionable takeaways from Cryptoxnâs unique approach and trading philosophy. Letâs dive right in!
In the Spotlight: CryptoxnÂ
Cryptoxn has been active on the crypto futures scene since 2018, specializing in an altcoin countertrend multi-partition strategy to capitalize on market shifts. Over the last ten months, he has risen to the role of Lead Trader, trading exclusively through APIs and accumulating over $1 million USDT in Assets Under Management (AUM). His disciplined trading approach has attracted over 500 active copiers, along with more than 9,000 mock followers, all keen to replicate his stable performance. With a focus on risk management, Cryptoxn has maintained his portfolioâs 90 day Maximum Drawdown (MDD) below 10% while delivering consistent returns during the same period.Â
Binance Futures: Could you share a bit about your background and what inspired you to start your crypto trading journey?
Cryptoxn: I started trading bitcoin in February 2015 after discovering an online ad. This sparked my interest in quantitative investing, which soon led to profitable trades. I consider quantitative traders like Edward Thorp, Larry Williams, and Richard Dennis as my mentors. Today, I enjoy the crypto trading lifestyle with many copy traders following my strategies.
Binance Futures: Can you walk us through the main strategies in your portfolio?
Cryptoxn:Â For short term strategy, I use a short-term countertrend strategy. Even during brief declines, the likelihood of a rebound is high, making this a high win-rate strategy. If losses occur, I accept them with humility. When my confidence in the strategy falters, I validate it through additional backtesting.
For long-term strategy, I use a BTC trend-following strategy for personal trades. Trend-following strategies often have lower win rates, which makes them challenging for most traders to stick with. This is why I donât use them in Copy Trading. For these strategies, I reference methods like Turtle Trading, volatility breakout strategies, the Supertrend indicator, and the 120-day moving average (MA).
Binance Futures: As an API trader, how do you keep your trading algorithms up to speed with the latest market trends?
Cryptoxn: Although crypto volatility has decreased recently, it remains a good market for countertrend strategies. The marketâs core characteristics donât change rapidly, so I donât adjust strategies or parameters often. Typically, I make minor adjustments 2-3 times a year. Lately, memecoins have drawn significant attention and trading volume, which can favor countertrend strategies. I continue to backtest various strategies and adopt new ones if the results are promising.
Binance Futures: How do you choose which assets to trade? Are there specific indicators or analysis methods you rely on?
Cryptoxn: I backtest and select coins that demonstrate long-term profitability trends. From those, I choose 10 coins to trade. The selection is based on factors like returns, maximum drawdown (MDD), or high trading volume and recent attention. If a coin underperforms for 1â2 months, I replace it with another.
For my short-term countertrend strategy, I rely solely on price action. Recently, Iâve been experimenting with incorporating RSI and volume indicators.
For long-term trend strategies, BTC, ETH, and SOL have shown strong results. For short-term countertrend strategies, I focus on other altcoins.
Binance Futures: Â How do you maintain a 90D maximum drawdown (MDD) of less than 10% while still achieving consistent gains?
Cryptoxn: I diversify my portfolio across 10 different coins and split my trading time frames into two intervals: 8 hours and 12 hours. Additionally, I employ a dollar-cost averaging strategy to prepare for major market downturns. I avoid using excessive leverage and maintain positions that can withstand a temporary 30â40% decline. I expect this approach to remain effective for the next few years, though lower volatility in the long term may make it harder to maintain profitability.
Binance Futures: Â How do you decide the amount of capital to allocate to different trades?
Cryptoxn: I trade around ten altcoins and allocate capital equally across them. For example, if I have $1,000, I would invest $100 in each of the ten coins. This method is straightforward and requires no special decision-making, allowing me to capture the average return of multiple coins.
To further diversify risk, I adjust allocations through backtesting. I assign more capital to coins with lower MDD and less to those with higher MDD, which helps to achieve a lower overall drawdown.
Closing Thoughts
We hope that Cryptoxnâs insights into API trading and risk management strategies will be valuable in your own trading journey. His disciplined approach and the resulting success are a testament to the power of consistency and strategic thinking in the fast-paced crypto market. A big thank you to Cryptoxn for sharing his knowledge with us in this interview!
If you are interested in finding out more, click here to explore Cryptoxnâs portfolio.
If you're confident in your abilities and interested in becoming a Lead Trader to scale up your trading, sign up on Binance Futures Copy Trading now!
Further Reading
Disclaimer: Digital asset prices are subject to high market risk and price volatility. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. Trading by following and/or copying or replicating the trades of other traders involves a high level of risks, even when following and/or copying or replicating the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance is not a reliable indicator of their future performance. No relationship between top-performing traders & Binance. In no way is performance or results guaranteed. Content on our platform does not contain advice or recommendations. This material should not be construed as financial advice, nor as a recommendation to follow any particular trader or strategy. To learn more about how to protect yourself, visit our Responsible Trading page. Copy trading is restricted in certain countries and to certain users. This content is not intended for users/countries to which restrictions apply. For more information, see our Terms of Use and Risk Warning.