Facepalm moment. The MA cross is approaching, and I discover that I can’t borrow ADA on AAVE. I’m not actually looking to borrow at the moment, because the indicated trade is a long not a short, but I wan’t to be able to borrow and I can’t. Why has it taken me so long to realize this? Actually xgboost is giving me a long string of no-go signals, so perhaps I wouldn’t have traded the crossover anyway, but still doesn’t solve my fundamental problem.
I’ve been looking for other liquidity pools that do offer borrowing ADA. There are a few but they all seem to be fairly new projects. Security is important in crypto generally, and I was happy to go with AAVE because it is a big project that has been around for a while and has a good reputation, and was recommended to me by someone who knows a lot more about DeFi than I do. Not so these other pools. So what to do?
AAVE does offer borrowing ETH, of course. I think it’s time to investigate the long term prospects of trading ETH. At least it will be doable. One reason I went with ADA is that it seems pretty undervalued at the moment, which is a fundamental consideration, but fundamentals really shouldn’t be an issue with this strategy anyway. I won’t be buying to hold, after all.
UPDATE
Testing the strategy with ETHUSDT instead of ADAUSDT shows a small profit, bigger with XGBoost than without, but still small. Lots of work to do. Tweaking the lookback periods might help, but perhaps I should use some base strategy other than Moving Average Crossover. There are plenty of indicators to try after all.