The Mudrex Invest helps investors identify and invest in strategies that pro traders have created. Mudrex Invest is different from any other investment platform in 3 main ways:
- Users invest in a bundle of high performing strategies that the publisher publishes.
- Users can invest in a bundle WITHOUT handing over funds to a third party
- Users can test and validate a strategy and do not need to rely on a third parties word making the system TRUSTLESS
- User get their investment fee back if they don't make any returns via Mudrex Protect
- Traders can share results and deploy funds on their strategies up without exposing the way it works. The IP always remains with the trader
As with any other investment platform, users require a limited choice of high-quality products to invest. Quality for in this case implies 2 things
- Setting the correct expectation of risks involved and returns expected over a timeframe
- Giving correct information about what are correct assets to build this on
We have designed a bundle review process to ensure that users get a limited number of high-quality bundle to invest in. Below are details of best practices traders should follow when the submit their bundle for review.
- Each bundle will be evaluated by all members of the Mudrex Review Committee (RC)
- To ensure that bundles submitted are of high quality, every member will have the veto right to reject the strategy
- At no point in time will the RC have access to how your strategy is built. Your strategy is only yours.
- RC will only have access to your submission details and will be able to run backtest on your strategy which will be visible to you
- The nature of the evaluation is objective and dependent on the individual strategies and submitted details
- If rejected, the RC will provide detailed information about why the submission was rejected. Traders can address the points mentioned in the submission and resubmit once they are ready
- Bundles will be rejected only if they do not comply with the guidelines mentioned below
General points to note
- DO NOT promote unreasonably returns
- You might have some backtest scenarios that are outliers and show unbelievable results. These should not be promoted. Setting the right expectations is key to long term success
- DO NOT use language in your description that overpromises or is not along the lines of how your strategy performs
- DO NOT flood the user with too much choice. The choice is good. Too much choice is bad
Going against the above will more often than not lead us to reject your strategy. Lets now look at best practice for each field
Short description will appear at the top of your bundle detail page and is the first part users will look at. This is an introduction to your bundle
- Keep it short and simple. Ideally <100 characters.
- Give a summary of the core idea on which it is built.
Description is a field where you can add more details about what your strategy does. You should focus on:
- The fundamental hypothesis used to make your strategy
- When is it expected to buy and when is it expected to sell
- Which kind of assets it works best for
- Which market conditions are preferred and why
- What time frames to run it for
HA Price Swing strategy is based on the hypothesis that prices revert to the mean in short timeframes. The strategy buys when it sees prices are just starting to move up and sells when the strategy dips below a peak.
It works best in volatile conditions that see lots of swings. It will win almost always when the market is oscillating. In bull markets, it is designed to capture as much of the up-move as it can. It ignores investing when markets are down.
The strategy is not designed to work in bear conditions because it is not optimized to prevent down moves. THE STRATEGY WILL LOOSE when it swings down.
The strategy is designed intraday candles so using 10m, 15m, and 30m work well. Also invest only in high liquidity markets like BTC/USDT, ETH/USDT, BTC/ETH
Do not use this strategy in shorting conditions or with leverage. You will lose!
Every strategy on Mudrex is paid and the creator of the strategy has complete control over the subscription fee. Deciding how to price your strategy is an important part of publishing your strategy. Too high a price will make it a deterrent from users to invest. Too low and you are not able to extract enough value.
As a thumb-rule, users are comfortable sharing 10-20% of the profits they make with traders happily. So if you expect your strategy to give ~10% returns in a month then ideally price should be 1-2% of Investment.
There are some other conditions that you can also setup like
- Min Fees: This is the min the user has to pay on a monthly basis. This helps limit users with small accounts from joining
- Max Investment per investor: This is the max allowable investment by one singe user.
- Overall investment limit: This is the max limit of investment on a particular bundle.
You can set these up as per your own choosing based on who you want to give access to and how much.
1. Creators can offer bulk discounts to users which are processed separately
2. Mudrex keeps 30% of the subscription fees and returns 70% to the traders.
Despite going through multiple checks, there is no guarantee of returns for any of the investment bundles. This is because no one can predict the market and there is an inherent risk in investing in volatile assets. Creators cannot predict every kind of market condition and hence cannot prevent all losses but what they can do is not charge their own fee for the months when you have losses.
Mudrex Protect is an optional feature available to creators where, if enabled, the creator opts to give back the users their subscription be if it does not make consistent returns over time. Read more about it here.
A lot of times creators request the ability to publish a bundle so that they can distribute it to a limited set of users and not list it on Mudrex Protect. Enabling Private Publishing removes the bundle from the Mudrex Invest listing and only users who have direct access to the URL are able to see it.
Note: Privately published bundles are not subject to the objective criteria of review from Mudrex. They do not go through the review process.
Objective criteria for evaluation
In order to safeguard investor interest, we are also adding the below objective criteria that need to be adhered to before publishing
- Performance score of 7 or more in backtesting over last 18 months
- Max drawdown < 30% in a backtest over last 18 months
- Max 2 of months with 5% or more loss over the last 18 months
- No continuous three month period with a loss
- Max leverage of 3x
- On average 4 trades a month
We look forward to building a large healthy ecosystem of traders and investors with its foundations built on transparency and open communication. As time progresses we will continue to add features that promote and help grow the ecosystem providing a valuable alternative for investors to invest and traders to earn from!