Essential terms and concepts for crypto trading and AI strategies
Purpose: This glossary explains key trading terms, technical indicators, and AI concepts used in our platform to help you understand your trading agent's decisions.
Tip: Use Ctrl+F (Cmd+F on Mac) to quickly search for specific terms.
An automated system that uses artificial intelligence to analyze markets and execute trades without human intervention. Our agent combines multiple strategies and learns from performance.
The AI's ability to improve its performance over time by analyzing past trades and adjusting strategy weights based on what works best for each user.
The current market condition (bull, bear, sideways) that affects how aggressive or conservative the AI should be with trading decisions.
AI analysis of social media, news, and market data to gauge overall market mood and predict price movements based on public sentiment.
Numerical values that determine how much influence each trading strategy (RSI, MA, AI, etc.) has in the final trading decision. Higher weights = more influence.
A strategy that buys assets at regular intervals regardless of price, reducing the impact of volatility by averaging the purchase price over time.
A trend-following indicator that smooths price data by creating a constantly updated average price over a specific time period. Used to identify trend direction.
A momentum oscillator (0-100) that measures the speed and change of price movements. Values above 70 suggest overbought conditions, below 30 suggest oversold.
A volatility indicator consisting of a moving average with upper and lower bands. Price touching the bands can signal potential reversal points.
Our system where each strategy (RSI, MA, AI, etc.) votes on what action to take (buy/sell/hold), and the final decision is based on weighted consensus.
An order that automatically sells a position when it reaches a certain loss percentage to limit downside risk. Protects against large losses.
An order that automatically sells a position when it reaches a certain profit percentage to lock in gains before potential reversals.
A dynamic stop loss that moves up with profitable trades, allowing profits to run while protecting against reversals.
Determining how much money to risk on each trade based on account size and risk tolerance. Proper sizing prevents catastrophic losses.
The peak-to-trough decline in portfolio value, expressed as a percentage. Maximum drawdown shows the worst loss period experienced.
The total profit or loss from trading activities, calculated as the difference between entry and exit prices minus fees.
The percentage gain or loss on invested capital, calculated as (Current Value - Invested Capital) / Invested Capital × 100.
The percentage of profitable trades out of total trades. A 70% win rate means 7 out of 10 trades were profitable.
A measure of risk-adjusted returns, calculated as (Return - Risk-free Rate) / Standard Deviation. Higher values indicate better risk-adjusted performance.
The total amount of money you've put into trading (initial capital + deposits - withdrawals). Used as the baseline for calculating returns.
USD Coin - a stablecoin pegged 1:1 to the US Dollar. We use USDC as our cash reserve and base currency for trading pairs. It provides stability and liquidity while maintaining purchasing power.
The largest and most established cryptocurrencies by market cap. Examples: Bitcoin (BTC), Ethereum (ETH). These are considered the safest crypto investments with high liquidity.
Well-established alternative cryptocurrencies with proven track records. Examples: Cardano (ADA), Binance Coin (BNB), Solana (SOL). These offer growth potential with moderate risk.
Cryptocurrencies that started as jokes or memes but gained popularity. Examples: Dogecoin (DOGE), Shiba Inu (SHIB). Highly volatile and speculative investments.
Tokens powering decentralized finance protocols and applications. Examples: Chainlink (LINK), Uniswap (UNI), Aave (AAVE). Value tied to protocol usage and adoption.
Recently launched cryptocurrencies with smaller market caps. Higher risk/reward potential. Examples vary as new projects launch regularly. Require careful research.
Base blockchain networks that can validate and finalize transactions. Examples: Ethereum (ETH), Solana (SOL), Avalanche (AVAX). Compete on speed, cost, and features.
Tokens that provide access to specific products or services within a blockchain ecosystem. Value depends on platform adoption and utility demand.
A market condition characterized by rising prices and optimistic sentiment. Generally favorable for buying and holding strategies.
A market condition characterized by falling prices and pessimistic sentiment. Requires more defensive trading strategies.
The degree of price fluctuation in an asset. High volatility means large price swings, while low volatility means stable prices.
How easily an asset can be bought or sold without affecting its price. High liquidity means easy trading with minimal price impact.
The total value of a cryptocurrency, calculated as current price × total supply. Used to rank and compare different cryptocurrencies.
A crypto slang term meaning "Hold On for Dear Life" - the strategy of buying and holding cryptocurrencies long-term regardless of price fluctuations.
💡 Pro Tip: Understanding these terms will help you better interpret your AI agent's decisions and improve your trading knowledge.