# PoW of Trading Signals

aunchVerse Community Trading Signals: A Week in Review

The LaunchVerse community has recently introduced trading signals as a utility. These signals were initiated on November 14th, and we have closely observed and analyzed the results from the first week.

### Understanding the Signals

The signals are categorized into three types:

**Wins**: Trades that ended with a 1% profit.**Losses**: Trades that ended with a 1% loss.**Non-triggered**: Trades that did not open any position.

### Rules of Engagement

The following rules apply to these signals:

Each signal is tracked for a maximum of 10 hours. If the expected entry level is not hit within this timeframe, the signal is passed over, ignored, and classified as non-triggered.

Once the entry level is realized, the position is entered as either Long or Short.

The Stop Loss (SL) is set to 1%, regardless of the bot’s recommendation, to minimize risk.

The Take Profit (TP) is set to 1% to avoid greed.

A leverage of around 5x is recommended.

### Performance Overview: November 14-21

During the week of November 14-21, a total of 115 signals were given:

47 wins

30 losses

38 non-triggered

A trader who followed all the signals without exception could have turned 1000 USDT into 2292 USDT, yielding a profit of 129.2% per week with 5x leverage on futures.

**Calculation Breakdown:**

The initial balance of 1000 USDT increases by 5% with each win, and decreases by 5% with each loss. This is due to the 5x leverage applied on the 1% profit or loss from each trade.

So, if there are 47 wins and 30 losses, the final budget would be calculated as:

*1000 * (1.05)^47 / (1.05)^30 ≈ 2292 USDT*

This means that an initial investment of 1000 USDT could potentially grow to approximately 2292 USDT within a week, given the same number of wins and losses. However, please note that this is a simplified calculation and actual trading results can vary based on market conditions and trading strategies. Always trade responsibly and within your risk tolerance.

### Profit Optimization Strategies

Upon closer observation of the 47 wins, we found that many trades had more than 1% in profits but were closed early due to the 1% target. To capture more profits from these winning positions, we propose two different approaches using a trailing stop:

**Trailing Stop Starting from +1% without TP**: This strategy involves not setting a TP but increasing the SL when the price goes up, starting from the price being at 1% above the entry level. This approach could increase the overall profit by an additional 9%, resulting in a cumulative profit of 55.13% with 5x leverage.**Trailing Stop Starting from +2% without TP**: This strategy involves moving the SL to 1% profit when the price hits 2%. This approach could increase the overall profit by an additional 10%, resulting in a cumulative profit of 62.89% with 5x leverage.

### Conclusion

In conclusion, we have identified three different approaches to trading these signals, each with its own potential profit:

1% SL and 1% TP - yielded a 129% profit in a week.

Trailing Stop - Moving the SL to the entry level when the price hits 1% and so on - yielded a 255% profit.

Trailing Stop - Moving the SL to 1% profit when the price hits 2% - yielded a 262.89% profit.

Please note that these results are based on the signals and market conditions for the week of November 14-21, and future results may vary. Always trade responsibly and within your risk tolerance.

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