> For the complete documentation index, see [llms.txt](https://docs.hypertrend.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hypertrend.xyz/how-do-trading-systems-work.md). # How Do Trading Systems Work? The market is constantly changing around us and there are many others in the order book who are smarter and better capitalized than us. So we start off by asking “what are the easiest, highest-probability ways we can make money at scale?” The best starting point is generally simple systematic trading strategies that have made money in nearly every financial market that exists. Strategies like trend and momentum trading (buying the assets that have been going up and selling the assets that have been going down), carry trades (holding assets that pay you to hold them) and mean reversion effects (assets which have gone up too fast tend to pullback). We also invest our spare capital in liquidity provision across the HyperEVM space. This is both highly profitable and aligned with our community goal of supporting the Hyperliquid ecosystem.\ Our strategies are more effective in crypto markets because crypto is still relatively young and inefficient. **Ultimately, if we are going to make a lot of money for our users, we are also going to have to be comfortable taking on risk.** \ I know that sounds scary, but bear with me. Risk isn’t a dirty word, and if someone suggests you are getting return without taking risk you should be very suspicious. Fortunately, we come to battle with a few advantages over the nerds. Nerds hate being uncomfortable, they hate going outside of their comfort zone. Even the smartest maths geniuses at Jane Street have to be gently coaxed into taking risks and getting uncomfortable. A vanishingly small subset can do the math and at the same time have the stones to take the risk. This is our edge. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.hypertrend.xyz/how-do-trading-systems-work.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.