Hi everyone! I’m part of the team at [Sommelier]( a platform for automated DeFi strategies. Strategies on Sommelier are non-custodial, transparent, secure, community-approved and designed to provide users with a better way to earn. There’s a new strategy coming to the platform called Steady ETH, which emphasizes principal protection and steady, consistent returns while pursuing occasional “home runs”.
The Steady ETH strategy looks for price breakouts and comprises two components: a work horse and a racehorse. The point of the workhorse is to nullify risk, capture a small profit/cover transaction cost and the point of the racehorse is to pursue a larger payoff opportunity.
Basically, by being in the strategy, you sit in USDC most of the time and then enter occasional small ETH trades (1.25% of portfolio) for up to 10 days (if price target or stop loss not hit). If the strategy is effective, there will be enough of these winning trades to generate steady, consistent returns.
Given the volatility/uncertainty of the past few weeks, these Steady strategies could be an attractive way to stay in the market and still try to capitalize on opportunities. **I’d love to hear your questions & comments!**
ETH Long Trade — An example: A long trade is triggered when the market reaches the directional entry level. Two positions (1.25% of portfolio each) on the long side are initiated by accumulating the ETH relative to USDC. Each position is immediately assigned a Target and a Stop (loss). If the market reaches the Target before the Stop, the workhorse ETH is sold for USDC, profit taking. Simultaneously, the racehorse Stop changes to a Trailing stop. At this point the economic risk is nullified, a small profit is locked in and the racehorse is pursuing a larger payoff potential.
The strategy is expected to capture the majority of any positive price breakouts and will limit losses through its trailing stops. Due to the nature of the strategy, it is designed to be held over a medium to long-term time frame (6 months to a year). At this time the benefits of being in the strategy are expected to emerge. You can find more details about the strategy in the articles [here]( and [here](