The Bitcoin Defense's algorithm has strict guidelines on when to trade and aims to take the human/emotional element out of trading. The idea is that across a long period of time (3-5 years), this algo will have better risk-adjusted returns than Bitcoin, so it's important to keep a longer-term mindset. The Bitcoin Defense leverages machine learning and regression analysis to detect when a downtrend or uptrend has been established before the portfolio rebalances.
The algorithm focuses on longer-term trends rather than intra-day trading, so the portfolio aims to maximize risk-reward by waiting for a trend to be established in order to rebalance.