dollar-cost averaging
Buying a fixed amount on a fixed schedule, regardless of price.
Glossary
The jargon, in one or two sentences each. These definitions also pop up when you tap a dotted word inside any guide.
drawdown
The fall from an account high to a later low, as a percentage. A 30% drawdown needs a 43% gain to recover.
expert advisor
An automated trading program for MetaTrader 4 or 5, often sold as a "bot".
funding rate
A small payment between longs and shorts on perpetual futures that keeps the perp price near spot.
grid trading
Opening positions at fixed price steps as the market moves, then closing the basket together.
leverage
Borrowed exposure. 10x leverage means a 10% move against you wipes out the margin.
liquidation
When an exchange force-closes a leveraged position because the margin can no longer cover the loss.
martingale
A sizing rule that increases position size after each loss, usually doubling, so one win recovers all earlier losses. Smooth until a long losing streak.
overfitting
Tuning a strategy so closely to past data that it captures noise, not a repeatable edge.
perpetual
A futures contract with no expiry date, the most traded crypto derivative.
perps
Short for perpetual futures: futures with no expiry, kept near spot price by funding payments.
probabilistic sharpe ratio
The probability that the true Sharpe ratio is above zero, given how many trades you have and how lumpy they are.
prompt injection
Text written to trick an AI model into following instructions it should ignore.
risk of ruin
The chance a strategy loses so much that it cannot recover, estimated here as falling to half the starting balance.
seed phrase
The 12 or 24 words that can restore a crypto wallet. Anyone with them controls the funds.
sharpe ratio
Average return divided by how much returns swing around. Higher means smoother returns for the same profit.
walk forward
Testing a strategy by optimising on one period and checking it on the next, then rolling forward.