#CryptoReboundStrategy
Adherence to strategies in crypto trading is based on the principles of rational risk management and behavioral economics. Without a clear strategy, traders are prone to emotional decisions, such as loss aversion or herd behavior, which can lead to losses.
Strategies such as portfolio diversification or the use of stop-losses allow you to minimize risks and increase expected returns, according to the principles of Markowitz portfolio optimization:
E[R_p] = Σ (w_i * E[R_i]),
where E[R_p] is the expected return on the portfolio, w_i is the asset weight, E[R_i] is the expected return on the asset.
In addition, a strategic approach provides a systematization of the decision-making process and consideration of both fundamental and technical factors, which allows you to better adapt to market volatility and ensure long-term stability.