Fixed Income Strategy – How Does It Work?
Trading strategies exist in many forms, each utilized for specific circumstances to achieve various financial outcomes. Certain strategies offer a high annual yield accompanied by higher upfront risk, while others deliver a lower yield coupled with lower upfront risk.
Choosing the right strategy can be simple if you know what to expect ahead of time in terms of risk versus reward potential. If you tend to lean more towards the conservative side in your investment tactics, then Stoic’s Fixed Income strategy is for you.
Fixed Income is an automated, market-neutral trading strategy that provides returns regardless of turbulent market conditions. When you think of Fixed Income, think of the word, steady. The crypto market could see a 5% or 10% fluctuation within a 24-hour period, but Stoic AI’s Fixed Income abilities remain steady through the storm.
Fishermen tend to throw an anchor overboard when they want the boat to stay in one place. Fixed Income acts as that anchor amidst the wavy fluctuations in the crypto market.
The following questions and answers will help you gain a healthy understanding of Fixed Income and what it can mean for you as an investor.
How Does Fixed Income Work?
Stoic’s Fixed Income strategy works to steadily grow your portfolio by automatically purchasing spot assets, then shorting them simultaneously on the Binance.com Futures market. Earnings are secured using the Binance funding fee, a commission paid out to futures sellers about every 8 hours. Stoic AI’s algorithm regularly rebalances long and short positions to mitigate risks and improve gains.
What are the Fees Involved?
While Fixed Income is not fully live nor open to the public, there are additional fees on top of what you’re already paying for Stoic. We are currently gathering feedback from our community and developing the pricing offers.
How Does Fixed Income Performance Vary?
Performance varies largely on market sentiment. What is the overall attitude, or feelings of investors towards the current market conditions? Fixed Income utilizes basic income of approximately 12% APY which can either increase when the market grows or decrease when the market falls.
How Does Fixed Income Execute During Market Crashes?
When the crypto market goes down, retail investors can desire to short futures, resulting in a Binance funding fee decrease. It is possible that the fees may even dive into the negative at times. If fees are extremely low, such as -0.2%, Stoic can close positions while protecting profits and capital.
Which Cryptocurrencies does Fixed Income Trade with?
Our team believes in utilizing a balanced portfolio of crypto assets to maximize the potential for accumulating funding fees. Portfolio’s worth less than $15k will only trade in ETH, while larger portfolios will spread trading efforts amongst 15 of the top 50 coins by market capitalization.
Is Stoic’s Fixed Income Strategy Secure?
We take security seriously. The app does not have the ability to withdraw funds out of the account and can only execute trades on your behalf. Our team of security specialists enforce the company’s zero trust principles, risk management compliance, and systematic checks to provide a secure environment trusted by thousands of happy clients.
How Do I Know my Funds are in Good Hands?
Our company is an official Binance Broker, having been vetted by one of the top crypto exchanges in the world. We have been in business since 2015, boasting over 15,000 clients with over $130M in total assets deposited.
Does Fixed Income have Portfolio Size Restrictions?
The minimum amount to deposit into your new sub-account on Binance is $500 worth of any cryptocurrency. Fixed Income will not execute effectively on deposit amounts smaller than $500. Users earn the same return percentage whether they invest $500 or $500M.
Can I Withdraw my Funds at Any Time?
Yes. Stoic AI does not have the ability to withdraw funds. Only you can initiate and remove funds from your account whenever you wish without time restrictions.
How Do I Get Started with Fixed Income?
To get started with Fixed Income, simply follow the prompts within the Stoic AI app to:
1. Open a new Binance sub-account
2. Fund your new sub-account with at least $500 in any crypto
3. Create an API key and scan the QR code
The above steps are explained in the onboarding walkthrough within the app. Don’t have the app? Visit either the Google Play store or the App Store to download and create an account.
What should I do after Fixed Income is Integrated with my Binance Account?
No further action is necessary. Allow the app to do all the heavy lifting to fully manage your portfolio. Feel free to check in occasionally to view the performance inside your account. Please do not manually place any trades within your connected Binance account. Only manage Stoic from inside of the Stoic app.
That's a Wrap
Stoic AI’s Fixed Income strategy is an excellent choice for risk-averse investors desiring a hedge against severe market swings. Though the potential for returns is generally lower than Stoic’s Long-only strategy, Fixed Income serves as that solid anchor amidst the waves in the crypto market.
Still wondering if Fixed Income is the right fit for you? Got questions that still need answered? Feel free to drop us a note at [email protected] or visit us in our Telegram channel.
Information in the article does not, nor does it purport to, constitute any form of professional investment advice, recommendation or independent analysis.