The Superposition product is a high risk but high return algorithm trading robot. It is based on the well known “fixed grid” trading strategy, but improves on it in many ways to achieve significantly higher returns than the fixed grid strategy.
Superposition buys and sells small amounts of volatile asset in the designated price range at various fixed price levels, extracting profits as a result of this activity.
Since volatile assets are held almost all the time during the position, the position is not capital-guaranteed or protected. The client may even realise significant exchange rate risks on it to close it out. However, the advantage of the strategy is that it can work equally well and generate profits even with a significant exchange rate loss.
Due to the grid technology, the system opens and closes positions at different exchange rate levels, so the asset value of the open position can constantly change. It is important to understand that not only does the Superposition not provide capital protection, but the value of the open position can also change significantly at different points in the price range.
If you open a narrow superposition with $2,000 capital on, pair of SOLUSDT at $180 price level, and then the exchange rate returns to $180 after a significant change in the exchange rate, there is no guarantee that the position will still be worth $2,000, because the SOL stock in the position was purchased at a completely different exchange rate than at the time of the opening, so you could have both a gain and a loss on the various purchases.
In all cases, the value of the position is based on the so called “Total PnL”, which is the total value of the position, including the values already realised as profit.
The value of the position can be significantly affected by the Range Keeper function and the asset management functions.