Strategy A1

The detailed explanation of Strategy A1.

Strategy A1 is the only strategy currently listed on the Turtle Platform. Users can deposit funds into the corresponding mining machine to earn principal trading income and passive mining income.

Turtle Finance Strategy A1

Updated July 23th, 2021

Trading

Make: It allows the user to lock the target transaction into the contract in one of the currencies of AA and BB (suppose AA) as the principal. The system records the trade as an initial rate against the exchange rate. Then the user sets the two-way trade profit (assuming both are 1%) and waits for the exchange rate to fluctuate to a predetermined value to trade automatically. In this process, the user sets a targeted purchase with an undisclosed price. The user is Maker.

Take: When the system detects that the exchange ratio of the transaction to BB/AA on DEX has increased by more than 1%, the system performs capital to exchange for the user, exchanges all AA funds into BB, and updates the exchange ratio to the benchmark exchange ratio for profit calculation, and the user turns into Taker at this time.

Then, it will continue to wait for the AA/BB exchange rate to exceed 1% of the benchmark exchange rate to change hands again and return to the principal currency.

Mining

In this process, the maker-taker assumed a risk: in the profit-making cycle, the exchange ratio of the non-principal currency to the principal currency has been negatively changed, and the time required for the exchange back to the principal currency is held unknown. Maker-Taker provides a "Stop Loss" parameter for risk control to ensure that the risk of principal loss is manageable to the greatest extent. In a later version of this strategy, the team plans to deepen the hedging of turnover risk, including auto-triggered liquidity hedging.

Risk Control

During the A1 trading process, Maker-Taker users take risks: during the profit cycle, they need to change hands to trading pairs of non-principal currencies, the exchange ratio of non-principal currencies to principal currencies faces negative changes, and the time required to change hands back to principal currencies is unknown.

For the risk exposure caused by the exchange of principal, Turtle Maker-Taker provides "stop-loss" parameters for risk control to ensure that the user's principal loss risk is controllable to the greatest extent. In the subsequent version of this strategy, the team plans to deepen the risk hedging of handovers, including the use of automatic triggering futures hedging.