Portfolio
Strategies
Select a coin to view its optimised SMA strategy backtest
Markets
How It Works
The concepts and strategies behind SJ Capital's algorithmic trading
SMA Crossover Strategy
Uses two Simple Moving Averages — a fast one (short-term trend) and a slow one (long-term trend). When the fast SMA crosses above the slow SMA, it signals a buy (golden cross). When it crosses below, it signals a sell (death cross). Our engine tests hundreds of fast/slow combinations to find the optimal pair for each coin.
Multi-SMA Consensus
Instead of relying on a single SMA pair, this strategy runs multiple pairs simultaneously. It only executes a trade when the majority of pairs agree on the direction, filtering out false signals and reducing risk. Think of it as a committee vote — no single indicator controls the decision.
Sharpe Ratio
Measures risk-adjusted return — how much return you earn per unit of risk taken. A ratio above 1.0 is good (decent return for the risk), above 2.0 is very good, and above 3.0 is exceptional. It's calculated as the average excess return divided by the standard deviation of returns.
Alpha
The excess return a strategy generates compared to simply buying and holding the asset. Positive alpha means the strategy outperformed the market. Negative alpha means you would have been better off just holding. Alpha is the ultimate measure of whether active trading adds value.
Max Drawdown
The largest peak-to-trough decline in portfolio value during the backtest period. If your portfolio went from $15,000 down to $10,000 before recovering, that's a 33% max drawdown. Lower drawdown means the strategy better protects against large losses — critical for real-money trading.
Backtesting
Simulates a trading strategy on historical price data to evaluate how it would have performed. Our engine uses real candle data from Coinbase, starting with a virtual $10,000 balance. It tracks every buy/sell, calculates returns, drawdowns, and risk metrics — letting you test before you risk real capital.