Last day of the month so now the end of 2020 update on the performance of our trading algorithms on the BOTS platform. The crypto market declined by 70% in March during the Corona crisis but from April onwards we have seen a strong Bull run leading to the highest value ever for Bitcoin at the end of 2020.
December was an exceptional month again for our bots with an average increase of 16%. Now 4 of our bots achieved more than 100% return since their start.
We are due to launch 7 to 8 new trading algorithms in January 2021.
In the Battle of the Bots series I will compare the performances of various bots. The monthly results of three series of battles between three bots of different botcreators will be posted for the next year. The goal is to evaluate the bots performance over a longer period of time, both in winning as well as in decreasing crypto currency markets.
In the second battle the following B-bots will compete (all three starting with the letter B).
Beetlejuice by The Noogieman: This bot scans 6 different coins being ETH, TRX, ADA, VET, TFUEL and THETA. It uses many different concepts to try to determine the best entry and exit points for trades and uses both stoploss and takeprofit levels. Estimated annual return is 48%. Risk level according to the bots app is 8/12.
Dr. Block by Rave before the Machine: This bot only invests in Bitcoin and is a risk spreader using small steps when getting into its asset. Analysis is key, to ensure profits are secured and possible losses are reduces. Testing results over the first half of 2020 show a 46,2% return on investment (ROI). A lower risk bot according to the bots app, 6/12.
Botzilla by Hot Bots Team: The behavior of this bot is as assertive and aggressive as the name might suggest according to the botcreator. The bot solely trades in the most liquid and biggest cryptocurrencies. It targets a ROI of 20% per year. The bots app rates it as a mild risk bot with risk level 7/12.
The chart shows the results after two month of comparing these bots.
In the chart the blue line represents Beetlejuice, the orange line Dr. Block and the grey line Botzilla. All three bots managed to achieve positive result over the last month.
The score after two months (score after one month).
Beetlejuice by The Noogieman : +36,15% (+14,24%)
Dr. Block by Rage before the Machine: +11,24% (+5,23%)
Botzilla by Hot Bots Team: +8,65% (+4,04%)
In the second month all three bots continue to show more or less the same growth rate as the first month. Beetlejuice, being the riskiest of the three bots according to the Bots app, shows the most volatility, which pays off in the current growing crypto currency market. Both Dr. Block an Botzilla are less volatile and less active, showing a flatline for part of the second month.
Tomorrow an update of the third and last battle of three bots.
In the Battle of the Bots series I will compare the performances of various crypto trading bots. The monthly results of three series of battles between three bots of different botcreators will be posted for the next year. The goal is to evaluate the bots performance over a longer period of time, both in winning as well as in decreasing crypto currency markets.
In the first battle the following trading bots are competing.
Power of Pi by Boosting Alpha: This bot scans 7 different coin markets using the mysterious constant value Pi in it’s algorithm. The bot has a calculated cumulative return in 24 months of 94% with a high volatility risk according to the botcreator. Risk level according to the bots app is 8/12.
Top 10 Balance 2 by Dembots: A long term steady bot which checks top performing coins with the highest volume every last 30 days. A concept similar to some well proven ETF strategies. The bot won’t win on big spikes, but if the market wins, you win. A high risk bot according to the bots app, 11/12.
Sweet Orange Mia by Agga Technologies: A balanced long term risk strategy that only trades Bitcoin. It trades on a small and medium timeframe to ensure it’s ability to react smoothly to moving market trends. Yearly testing results predicted a 2020 performance of 89,47%. A mild risk bot according to the bots app with risk level 8/12.
The results of these three bots after two months is represented in the following chart.
In the chart the blue line represents Power of Pi, the orange line Top 10 Balance 2 and the grey line Sweet Orange Mia.
The score after two months in percentages (score after one month):
Top 10 balance 2 by Dembots: +58,73% (+45,23%)
Sweet Orange Mia by Agga Technologies: +23,07% (+8,26%)
Power of Pi by Boosting Alpha: +14,45% (+6,16%)
In the growing crypto market all three bots have taken advantage and been able to increase the value of their investment over the past month. Top 10 Balance 2 is “always on”, always in position, and dependent on performance of the Top 10 coins. It has benefited from the growth of bitcoin and ethereum, but suffered from the decline of ripple. Sweet Orange Mia and Power of Pi take to the sidelines when their algorithms suspects a decline, as can be seen by flatline periods in the chart. They should be able to protect profits better in case of a downtrend in the crypto market, hence their lower risk profile. The future will tell which bot performs best, and if they are able to live up to the promises of their predicted annual results of 90%.
Tomorrow an update of the second battle of three bots.
This is the first post about bots “popularity”. A poll for two, out of three, bot Risk Classifications (RC). In the 3rd Risk Classification, Low (1-4) there are currently now bots available. The Bots Risk Classification (RC) is dynamic and can change over time. For the purpose of Polls this is just an indication.
Although it requires more substance to draw conclusions, it is a good start to know how users value their selected bots.
On the poll-page users can indicate there experience and satisfaction with bots. The bot-strategy should be an important aspects, because this is important to other users. Aspects to take into consideration are: Overall performance, risk versus yield, stability vs volatility, Bots Creator score, availability (=to start) etc.
Bots Popularity Poll. Risk Classification: Average (5-8)
Total Voters: 31
Bots Popularity Poll. Risk Classification: High (9-12)
Total Voters: 33
Total Polls’ Answers:
Total Votes Cast:
* The highlighted bots are mine. At the time of this impression.
Bitcoin has been on an exeptional bullrun rallying more than 45% in value in the past two weeks to more than $28.000. If we compare that run to the performance of the Bitcoin crypto trading bots we see the following results.
In percentage (2 weeks ago):
Bitcoin (green line): +154,84% (+72,33%)
Himalaya by botcreator Boosting Alpha (orange line): +50,60% (+28,82%)
Sweet Orange Mia by botcreator Agga Technologies (blue line): +31,63% (+14,12%)
Dr Block 2 by botcreator Rave before the machine (yellow line): +31,62% (+27,88%)
Dr Block by botcreator Rave before the machine (grey line): +25,71% (+19.03%)
Although all bots have been able to add value, the differences are remarkable. Just like in my last blog where I compared the performance of my portfolio of crypto trading bots to a holding portfolio of crypto currency coins, I want to use the Sharpe ratio to help understand the return of the investments compared to their risk. To briefly summarize the usefulness of the ratio:
The Sharpe ratio adjusts a portfolio’s past performance for the excess risk that was taken by the investor.
A high Sharpe ratio is good when compared to similar portfolios or funds with lower returns.
Comparing the Sharpe ratio’s of Bitcoin and the BTC trading Bots provides a fairer picture of the performance. The results are represented in the following chart.
A higher Sharpe metric is always better than a lower one because a higher ratio indicates that the portfolio is making better investment decisions and not being swayed by the risk associated with it. Sharpe ratio grading thresholds are commonly interpreted in the following way:
<1: Not Good
1 – 1.99: Ok
2 – 2.99: Really Good
With Sharpe ratio scores ranging from 2,96 to 4,46 the Bitcoin trading bots have shown very good to exceptional results. Bitcoin however, with a Sharpe ratio of 10, is in a league of its own.
Finally the chart for Ethereum and the ETH trading bots.
Ethereum is showing very strong growth in value over the past two weeks. The ETH trading bots show a varied picture. In percentages (2 weeks ago):
Ethereum (grey line): +96,88% (+58,45%)
Refreshing Grey Mia by botcreator Agga Technologies (blue line): +22,70% (-1,22%)
Dr. Spock by botcreator Rave before the machine (orange line): -12,81% (-12,05%)
Refreshing Grey Mia has performed very well and turned its loss into a good profit. Dr. Spock has fallen further and is waiting for an update by the botcreator.
As noted in previous blogs, the crypto trading bots are looking for an outperformance by holding on to accumulated profits in a declining market. So far they have had no chance to do so. I will continue to compare the results of the crypto trading bots to the performance of their coins to see if outperformance is possible in the longer run.