Discover how the Nova-Dox software trades ETH using cutting-edge algorithms to generate consistent returns, even during bear markets.
Turning a profit in the depths of a bear market might seem like nothing more than a dream, but Nova-Dox can help you stay in the green regardless of market conditions. We turn a profit during the most challenging times, and our software can handle huge drops in ETH’s price.
Naturally, you want to know more about how we will turn a profit with your NFTs, so in this blog post, we’ll get into the details behind the Nova-Dox trading software and show you proof that our system works even during the most brutal bear markets.
The Nova-Dox Trading Software Explained
Investing in the middle of a bear market can be nerve-wracking, but once you’ve understood the power of the Nova-Dox trading software, you’ll be able to rest easy knowing your funds are in good hands.
A Brief History of Nova-Dox
Nova-Dox was founded by George Vesters and Nelle Jan Van Veen. They combined their expertise in statistical modeling and applied mathematics to develop an Ethereum-Dollar trading software that reduces the downside risk and maximizes upside potential.
Our platform aims to bring ETH trading to people who don’t have the vast sums required to access most algorithmic trading platforms, traders who just can’t turn a profit, or people who simply don’t have time to open their own accounts and learn how to trade ETH.
Additionally, the founders wanted Nova-Dox to bring a charitable element to its community by using a small slice of the profit generated by the software to build dog shelters for some of the most neglected doggos on the planet.
The video of our first happy Nova Dog - Jimmy
How Does Nova-Dox Work?
At the core of the Nova Dox is the NFT collection. The first tokens are called ‘Jimmies’ after the stray dog that inspired George to launch the project, but in future collections, new dogs will appear.
More Than Just A Cool NFT
When you buy a Jimmie NFT, you aren’t just getting a piece of digital art like most projects; you’re adding your funds to a trading account. So none of the money spent on Jimmies goes into our pockets; it goes directly to the trading account.
Your trading portfolio is protected by an escrow system, making it impossible for a third party or us to withdraw your funds without your permission. You can learn more about our security system in our pitch deck.
Playing The ETH Market
The Nova-Dox trading software has been built in-house from the ground up and runs on the Deribit cryptocurrency exchange, which has the biggest crypto options market on the web.
Once you’ve purchased your Jimmie NFT, your funds will automatically be added to a trading account on Deribit. Your funds start trading the moment they arrive. To get an idea of how this process works, let’s go through an example:
- NFT purchase completed for the equivalent of $1K in ETH.
- We deposit the total dollar amount of the NFT into the trading account on Derbit; remember that due to OpenSea trading fees, gas fees, and the 5% affiliate fee, your deposit may be slightly less than what you spent on the NFT.
- A short position on ETH is taken and hedged against the dollar using an ETH-USD futures contract with the same value as the account balance. If ETH drops, the account is rewarded for short-position in dollars, meaning the account value in USD is maintained.
- If the market crashes, we average down on long positions, and the short hedge position provides the funds needed to add long positions during extended bearish swings.
Like major hedge funds, we trade using both futures and options, these instruments are complex and usually out of reach for most investors, but with Nova-Dox, you can profit from them too.
Quick Tip: A futures contract is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time. Futures allow us to hedge against losses and profit from future volatility.
The illustration below shows a futures trading bot’s success starting in August 2021 alongside the ETH price chart in the same time frame. As you can see, the account took 20% profit from August to December, during a 50% drop in ETH’s price.
Even though the ETH price dropped 50%, the trading account dropped less than 20%, reflecting the resilience of our software during unprecedented price crashes.
ETH’s price rallied following the crash but still remained 30% below its December high. Note that the dollar value of the account rallied considerably faster than ETH and moved back into profit, with ETH still well below its highs.
While 2021 was a dreadful year for most people trading ETH long-positions, this account returned 30% profit.
Futures and Options Bot
Quick Tip: An option is a trading instrument that gives the ‘option’ to buy an asset at a predetermined price on an agreed date in the future. You pay a premium to hold an option and stand to profit during big price swings.
Our futures Bot has produced fantastic results, but we wanted to go further, so we incorporated Options trading into the system. The illustration below tracks our new Futures and Option Bots' progress starting May 2022 against the ETH price chart.
Shortly after the account opened, ETH suffered an over 50% crash, followed by an almost complete recovery, followed by another drop leaving ETH about 30% below the starting position.
The Options Bot account temporarily lost around 25% in USD during the initial crash despite ETH’s 50% drop, demonstrating a significantly reduced downside risk. As ETH’s relief rally began, the Bot recovered rapidly, hitting 20% profitability even though ETH was still below the starting price point.
As of writing, ETH is 30% below the entry point of around $2000, but the options account is 15% in USD profit and a whopping 60% in ETH.
More impressively, if ETH returned to $2000, the price that the Bot started trading at, the account’s USD profit would surge a further 50%.
The options Bot returns more when ETH rises and loses less when the price drops. As a result, we average 7-10% monthly profit in the middle of a bear market.
You will receive your first payout within roughly two months of purchasing your NFT as long as the account is in the green. We calculate your returns in dollars and then transfer the equivalent in ETH to your crypto-wallet. After the first two months, you will receive profits monthly.
Furthermore, if, for some reason, you want to sell your NFT, you can do so on the open market, and if it doesn’t sell, we will always repurchase it from you for the margin balance of your account.
Nova-Dox Trading: The Final Word.
Backed by the powerful in-house trading software, buying a Nova-Dox NFT helps you enter the world of digital asset trading with minimal risk, generating monthly profits via complex financial instruments that usually remain inaccessible to the average investor.
Our trading Bots have netted impressive profits for our investors even when ETH’s price was in free fall, and they can handle a 100% market crash due to the balance between dollar drawdowns and ETH volume spikes.
Our software generated profit in the middle of a bear market, so just imagine what it will achieve when the bull market returns.
Author: Peter Barker