All Collections
Stoic
Fixed Income Trading
How Does Fixed Income Work?
How Does Fixed Income Work?
Ira avatar
Written by Ira
Updated over a week ago

Fixed Income is an automated, market-neutral trading strategy that provides returns regardless of turbulent market conditions. When you think of Fixed Income, think of the word, steady. The crypto market could see a 5% or 10% fluctuation within a 24-hour period, but Stoic AI’s Fixed Income abilities remain steady through the storm.

Fishermen tend to throw an anchor overboard when they want the boat to stay in one place. Fixed Income acts as that anchor amidst the wavy fluctuations in the crypto market.

How Does Fixed Income Work?

Stoic’s Fixed Income strategy works to steadily grow your portfolio by automatically purchasing spot assets, then shorting them simultaneously on the Binance.com Futures market. Earnings are secured using the Binance funding fee, a commission paid out to futures sellers about every 8 hours. Stoic AI’s algorithm regularly rebalances long and short positions to mitigate risks and improve gains.

What makes Fixed Income so great?

1. Performance

2. Low Risk

The drawdown percentage of Fixed Income for the entire history didn’t increase even above 1%

Fixed Income Prerequisites

To use Fixed Income, 2 simple prerequisites need to be fulfilled:

  1. Users must have a Binance Global account with the ability to trade Futures.

  2. The minimum of $500 to invest in the strategy

Fixed Income effectively trades starting from a portfolio with a minimum of $500. Any amount less than $500 will not allow the strategy to perform efficiently, resulting in poor progress.

Let’s get started!

Follow these simple steps to success:

  1. If you haven’t already, sign up for a Stoic AI account

  2. Sign up / fund a Binance Global with a minimum of $500 and the ability to trade Futures.

  3. Choose the Fixed Income strategy inside the Stoic app

  4. Follow the steps to connect your Binance Global account to Stoic

  5. That’s it… Happy trading!

The above steps are explained in the onboarding walkthrough within the app. Don’t have the app? Visit either the Google Play store or the App Store to download and create an account.

Please read on for frequently asked questions regarding Fixed Income

Fixed Income FAQs

How Does Fixed Income Performance Vary?

Performance varies largely on market sentiment. What is the overall attitude, or feelings of investors towards the current market conditions? Fixed Income utilizes a basic income of approximately 12% APY which can either increase when the market grows or decrease when the market falls.

How Does Fixed Income Execute During Market Crashes?

When the crypto market goes down, retail investors can desire to short futures, resulting in a Binance funding fee decrease. It is possible that the fees may even dive into the negative at times. If fees are extremely low, such as -0.2%, Stoic can close positions while protecting profits and capital.

Which Cryptocurrencies does Fixed Income Trade with?

Our team believes in utilizing a balanced portfolio of crypto assets to maximize the potential for accumulating funding fees. Portfolios worth less than $5k will only trade one coin from the top 20 coins by market capitalization, while larger portfolios will spread trading efforts among no fewer than 5 coins of the top 50 coins by market capitalization.

Is Stoic’s Fixed Income Strategy Secure?

We take security seriously. The app does not have the ability to withdraw funds out of the account and can only execute trades on your behalf. Our team of security specialists enforces the company’s zero trust principles, risk management compliance, and systematic checks to provide a secure environment trusted by thousands of happy clients.

How Do I Know my Funds are in Good Hands?

Our company is an official Binance Broker, having been vetted by one of the top crypto exchanges in the world. We have been in business since 2015, boasting over 15,000 clients with over $130M in total assets deposited.

Does Fixed Income have Portfolio Size Restrictions?

The minimum amount to deposit into your new sub-account on Binance is $500 worth of any cryptocurrency. Fixed Income will not execute effectively on deposit amounts smaller than $500. Users earn the same return percentage whether they invest $500 or $500M.

Can I Withdraw my Funds at Any Time?

Yes. Stoic AI does not have the ability to withdraw funds. Only you can initiate and remove funds from your account whenever you wish without time restrictions.

What should I do after Fixed Income is Integrated with my Binance Account?

No further action is necessary. Allow the app to do all the heavy lifting to fully manage your portfolio. Feel free to check in occasionally to view the performance inside your account. Please do not manually place any trades within your connected Binance account. Only manage Stoic from inside of the Stoic app.

Further questions?

Feel free to reach out to stoic@cindicator.com or contact our support in the in-app chat.

Did this answer your question?