Multi Market Strategy

MMS is a strategy operating on a multiple cryptocurrency asset pair on a single or multiple crypto exchanges.

What is Multi Market Strategy?

Multi Market Strategy (MMS) is a strategy, which allows you to follow a range of asset pairings and monitor their movement at the same time. This allows you to trade across many currencies at once, choosing the most effective among them to apply your strategy to, targeting the best trading conditions.

As opposed to Single Market Strategies, using MMS offers a range of new options, for example, you can run trading signals across 10 currencies and choose to trade with only the best currency with best signals setup. You can also trade specific interactions, where you follow, for example, a BTC/USDT pairing as your primary asset and, if the price rises on this ‘main’ currency, you will trade other currencies’ movements in a way that takes this principal movement into consideration. This gives you the advantage of being able to trade currencies based on their correlation to others. MMS allows you to reallocate your capital to the best-performing currency almost instantly.

As further demonstration of when MMS would be favored over SMS, we can use the market conditions at the beginning of 2019 as a good example. Using an MMS strategy, we could follow an assortment of the top-20 currencies by market capitalization and effectively reallocate capital to the currency with the best actual performance and greatest potential gains over the next few minutes, hours or days. The gain potential can be calculated by an investment strategy based on technical analysis (price patterns, indicators), fundamental analysis (news), or psychological analysis (crowd behavior, game theory). When the potential for gains becomes weaker, MMS can close the opened position and will wait for the next opportunity on the same currency, or switch to a different currency.

How to create a MMS?

To start creating a new Multi Market Strategy just select “New strategy” from the left column. From the dialog, you will want to select MMS.

After you click the “Create” button, you will open the Signals development environment, which already has a template example MMS strategy for you. Now you can select any number of additional markets from the left sidebar and define your strategy logic based on them.

Selecting additional markets in the strategy editor

As with any trading strategy, your multi market strategies can and should be tested thoroughly before being deployed. Just hit the backtest button to put your new strategy through its paces. Signals offers comprehensive testing of all strategies you create, allowing you to see how they would perform under real conditions using historical data. Once tested, you will receive a full report breaking down the key statistics, together with a visualization of strategy behavior across all asset pairs which your multi market strategy is using.

Chart showing backtested trades based on the currency pair your strategy is applied to