A while ago I wrote an article about the bot and setting it up, but I still get a lot of questions. Most of the interesting questions I want to answer with this article are:
- Have I earned more (net profit) on my deposit than I have from holing Bitcoin in the same time?
- How can I keep the bot working in a sideways/downwards market?
- What are the advantages of a retained strategy versus a more aggressive strategy?
- Can I show some statistics from a bad month like July?
- What is the difference between the UpDown and BAT strategies?
Table of contents
- 1 Brief Introduction:
- 2 1. Have I earned more (net profit) on my deposit than I have from holdening Bitcoin in the same amount of time?
- 3 2. How can I keep the bot working in a sideways/downwards market?
- 4 3. What are the advantages of a retained strategy versus a more aggressive strategy.
- 5 4. Can I show some statistics from a bad month like July.
- 6 5. What is the difference between the UpDown and BAT strategies?
Brief introduction:
The Satoshi Trading Bot uses an intelligent algorithm that automates trading for you. The bot goes to work for you to grow your crypto portfolio purely based on its fundamental analysis of the market. The MACD indicator, among others, is used for this purpose. For substantive explanations about the operation and settings bot I refer to the Satoshi Bot website. For help or other questions I refer to the Telegram community with over 350 members.
1. Have I earned more (net profit) on my deposit than I have from holdening Bitcoin in the same amount of time?
In a short answer, yes almost 13%.
Of course I am going to back up this answer with figures. Since January I have earned a gross total of 10,800 euros from the bot. Minus platform costs this comes to 8,640 euros and about 1000 euros trading costs from the exchange off (0.02% based on trading volume) it comes to 7,640 euros net.
The deposit I put into the bot is divided into phases namely January I started with 2,000 euros. In March I increased my deposit to 4,500 euros. In April I added another 5,500 euros and increased to 10,000 euros. In May, I added my last 5,000 euros, increasing my total deposit to 15,000 euros. To make this deposit I sold some of my hodl portfolio which I had had for a fairly long time. The total profit on my deposit is just over 50% and this was realized mainly in the period up to the end of May. Because the bot also bought new trades in small coins that are currently up to 60% underwater my total is now 15,900 euros which puts my current net profit at 6% (at the time of writing).
If I had bought and held Bitcoin at the same buying moments my loss now would have been about 6.7%.
Of course BTC will go up and this will look very different at the end of the year, but then my bot will also have additional profits. A 12.7% difference from buying and holing Bitcoin in the same period.
Buying moments:
- Jan 1, 2021 buy for 2,000 at 25,000 rate is 0.08 BTC.
- Mar 1, 2021 buy for 2,500 at 42,300 exchange rate is 0.06 BTC.
- Apr 1, 2021 buy for 5,500 at 51,000 rate is 0.11 BTC.
- May 1, 2021 buy for 5,000 at 49,300 exchange rate is 0.10 BTC.
- This yields a total of 0.35 BTC with the current exchange rate of 40,000 this has a value of 14,000 (at the time of writing).
Note: I always remain an advocate of holing cryptocurrencies in a portfolio over the long term and the bot will therefore have a feature where profits can be automatically kept in the respective cryptocurrency so that the portfolio builds up automatically. This feature can be set on a per trader basis and decide whether euros or cryptos are earned.
2. How can I keep the bot working in a sideways/downwards market?
This can be done by setting so-called ceiling prices. At 'settings' -> 'traders' there is an option to adjust the 'maximum buying amount'. In June, for example, the Bitcoin market often dropped towards 28k euros and then back towards 30k. For the bot, these are perfect conditions. If you then set the maximum purchase amount of Bitcoin to 28k and the minimum profit percentage for example to 3% in this case then the rest goes automatically.
This can also be used in a rising market, of course, but it is a retained strategy which limits the bot's actions somewhat. In question 4, I discuss statistics from the fully automatic strategy in July.
3. What are the advantages of a retained strategy versus a more aggressive strategy.
A retained strategy makes the bot less likely to go underwater, and then it almost always keeps running. However, the disadvantage is that you miss trades compared to the fully automatic and more aggressive strategy. If you know how to estimate the market well, however, you can earn a lot on a single trade with a retained strategy.
4. Can I show some statistics from a bad month like July.
This is a fully automatic strategy that still managed to achieve a return of 6.23% in 14 days. In this example, we chose the UpDown strategy and all coins on Binance.
5. What is the difference between the UpDown and BAT strategies?
BBT Strategy: buys only when the price trend turns from falling to rising, never during a rise or fall. BBT sells only when the price trend turns from rising to falling, provided the entered rate of return is met.
UpDown Strategy: buys continuously (independent of price trend) when falling and sells as soon as the rate of return is met. This strategy looks at the 1 minute candle.
That's all for today!
If there are other interesting questions I would like to hear about them and then I will try to answer them in a future article or on Telegram.
To conclude another video of 2 weeks of simulator from late Sept to early Oct:
Note: Not financial advice, but a personal opinion. Past performance does not guarantee future results.