Cindicator’s Stoic AI hits all-time high: +318%
Last week, Stoic AI, a crypto trading app, hit a new all-time high in return: +318% since March 2020 when Stoic’s strategy started trading. Since the public launch just under two months ago, Stoic’s users connected the app to accounts holding over $2 million worth of crypto assets.
What is Stoic AI?
Stoic AI is a simple automated crypto trading mobile app based on Cindicator’s Hybrid Intelligence (collective intelligence + AI). Users connect Stoic AI to their Binance exchange accounts via API and the app automatically executes the trading strategy.
The strategy
Stoic’s currently available algorithmic trading strategy is a long-only portfolio of large-cap altcoins with daily rebalancing.
The weights for each asset position are set by a quantitative algorithm, which was developed by the team behind crypto hedge fund Cindicator Capital. The algorithm considers volumes, trend, momentum, and other factors that affect asset prices.
Unlike most crypto trading bots, Stoic AI does not require any setup and works right out of the box. Users simply create trading-only API keys (i.e. allowing to buy and sell but not withdraw assets) and share them with Stoic via a mobile app.
After that, every day, Stoic AI makes about 20-30 trades, trading liquid crypto assets that have at least $10 million in daily volumes in Binance.
The current portfolio is available in the Stoic app even in the demo mode. After connecting an account and launching live trading, the app shows the user’s actual portfolio.
Starting from next quarter, Stoic will start to introduce new advanced strategies. Users will be able to select more aggressive or defensive strategies based on their preferences or views of the market.
Stoic’s performance
Stoic’s current trading strategy aims to maximise returns in USDT and beat the passive holding of Bitcoin and altcoins. The algorithm does this by taking advantage of market trends and rebalancing the portfolio at an optimal time.
The chart below shows the performance of the first live account that started trading on March 1. This amounts to +318% in USDT.
Vlad Kazakov, Stoic Product Owner, notes:
“Many retail traders buy at the worst time, during bouts of euphoria when assets surge. They also hold losers for too long and finally sell at the very bottom. Clearly, this isn’t the best strategy. Stoic removes these avoidable losses that are rooted in human psychology. It’s like an ancient Stoic philosopher who looks at life events rationally without allowing to be controlled by either fear or excitement.”
To prevent losses, Stoic’s strategy includes built-in automated profit-taking. A period of strong growth is usually followed by a short-term correction once a flow of new buyers dries up.
For example, last week, altcoins surged (some by 30-40% a day like XRP and XLM) and a sell-off was likely. The Stoic portfolio already delivered superior returns (most users saw high double-digit returns) and the algorithm converted all assets into USDT to take profits.
This worked well and the algorithm helped Stoic’s users to avoid a drawdown. From Wednesday night until Thursday afternoon, the period when Stoic’s algorithm held assets in the stablecoin, both Bitcoin and ETH lost about 8% while some assets like XRP were down -14%. After the trading restarted, Stoic users again saw double-digit returns over the next few days.
Stoic AI availability
Anyone with a Binance account at least $1,000 worth of crypto can use Stoic AI.
The low 5% management fee is the only cost — there are no performance fees or any other costs.
The assets always remain on Binance and users can add or withdraw funds any time, just like with a regular account. If you already use Stoic, please update the app to find out about the easiest way to add funds to your account.