Do you as a trader want to estimate your monthly portfolio profit and loss automatically? Are you interested in a diagram representing the performance of the assets you hold? Would you like to learn how much idle money you have on your margin account and assess the risks in no time? The crypto trading community lacked these options for quite a while. Xena Exchange is different.
Most traders plan carefully and make trading notes to measure the profitability of a certain period and analyze the circumstances of good profits or big losses. According to Kenneth L. Grant’s book Trading Risk: Enhanced Profitability through Risk Control, one should calculate their PnL on a daily basis and assess it on a monthly basis. This process helps traders find the weak points in their strategy. For example, if the trader has a large loss one day and a huge profit another day, the portfolio is considered extremely risky and needs to be revised.
Reading the trading summary
A portfolio represents the outline of a trader’s performance, provides data on the open positions, and shows the recent market movements. Basically, it lets the trader scan the market and the portfolio and manage it in one click.
Recently, Xena Exchange has released a derivative contracts (or Perpetuals) portfolio in addition to its existing spot one. Even though these two portfolios serve one and the same goal, there are some important differences. While the spot portfolio’s pie diagram provides data on the volume and value of positions in USDT or BTC, the perpetuals one displays the net position volume and its effective leverage. Additionally, it shows how much idle money the trader has on the account — remaining collateral. The bigger the remaining collateral is, the lower the risks are. When the collateral decreases to zero, the account undergoes liquidation. A bigger sector of a given instrument means higher exposure to price fluctuations of that instrument and, consequently, higher risks.
The next thing to take a closer look at is the bar diagram, which depicts the current P&L of all your positions by instrument and helps you detect the winners and losers in your portfolio at a glance. Both portfolios also show the last month’s yield, which makes it possible to assess the performance and introduce changes if needed.
The second part of the portfolios provides data on the recent market movements and enables the immediate purchase or sale of spot assets. The graphs represent daily and monthly changes as well as signals based on trend power indicators.
Trend power indicators: CCI, EMA, RSI
CCI, EMA, and RSI are powerful technical indicators that indicate whether the asset is overbought or oversold and makes signals based on this data. The CCI and RSI indicators are so-called “oscillator indicators,” and as with other oscillators, if the value is below the oversold threshold, a buy signal is generated. If it is over the overbought threshold, the signal is to sell.
EMA is used to produce buy and sell signals based on crossovers of the moving average and the actual price of an asset. A buy signal is generated if the EMA is below the last price, and a sell signal occurs when the EMA is above the last price.
All indicators are calculated in five different timeframes: 5 minutes, 15 minutes, 1 hour, 2 hours, and 1 day.
At Xena Exchange, we put significant focus on providing both professional and new traders with the instruments they need. The portfolio is an essential risk management tool that will be of great help both for traders who hold leveraged position and for those who trade on the spot engine. Register at Xena Exchange right now and discover advanced trading features you’ve never experienced before.
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Remember that trading cryptocurrencies comes with significant risks. You may suffer considerable losses and may potentially lose more than you have invested. If the risks involved seem unclear to you, please consult an outside specialist for independent advice.
All indicators, studies, and trading signals provided on the platform are based on technical analysis and are predefined algorithms that use the history of prices, the state of the order book, and other data as input. These tools are to only be used along with thorough market analysis. No tools can guarantee future profits or predict the movement of markets with absolute precision.