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 trading 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 third battle a long time favorite of many bots-users will compete against two BTC based bots. What difference does the base coin make?
- JoeDaredevil by Boosting Alpha: This bot invests in 18 high volatility coins, lesser known coins with lower market volumes. Therefore it targets a relatively high profit potential. Estimated annual return is 129%. Risk level according to the bots app is 9/12. Basecoin USDT.
- CBS (CryptoBaseScanner) by Altrady: The oldest bot on the platform. A unique algorithm that works by automatically analyzing the market history for each available market, checking current prices against previous support levels so that the bot buys low and sells high . Testing results predict a 36% return on investment (ROI). A risky bot according to the bots app, 10/12. Basecoin BTC.
- DeFi Strategy by Dagobert Buck: The bot focuses on the Top 10 coins in the world of Decentralized Finance (DeFi), a strong emerging submarket within crypto with a lot of growth potential. It targets a ROI of 70% per year. The bots app rates it as a high risk bot with risk level 11/12. Basecoin BTC.
The following chart shows the results of the three bots over the past two months.
JoeDaredevil, represented by the blue line, has been able to increase the amount of base coin, being Theter (USDT), while CBS (grey line) and DeFi strategy (orange line) have had a hard time finding and trading coins that outperformed their base coin BTC. It looks like CBS traded a coin that has experienced a free fall, losing more than 25% overnight (was it XRP?). Unfortunately the botcreator cannot give a clarification. Altrady’s reaction:“Unfortunately I cannot provide an answer myself because I do not receive any feedback from RY as to which signals have or have not been sold. I also suffer from it. I lost 30% in one night.”
Because of the rapid growth of BTC, the chart in euro view gives a completely different picture.
Final score after two month in basecoin (result after one month):
- JoeDaredevil by Boosting Alpha : +17,16% (+10,85%)
- DeFi Strategy by Dagobert Buck: -7,89% (-6,05%)
- CBS by Altrady: -22,07% (+0,06%)
Final score after two month in euro (result after one month):
- DeFi Strategy by Dagobert Buck: +85,38% (+27,75%)
- CBS by Altrady: +56,92% (+36,07%)
- JoeDaredevil by Boosting Alpha : +11,49% (+7,12%)
2020 has clearly been a very good year for Bitcoin, and therefore for trading bots with Bitcoin as their basecoin. Because of the enormous increase in value of Bitcoin (today’s value is almost 4 times last year’s value), the value in euro’s of BTC based bots has seen enormous increases as well.
The US dollar on the other hand (and with it USDT as the US dollar based stablecoin) has decreased almost 10% in value last year, compared to the euro. This is discounted in the results of trading bots based on the stablecoin, which can be seen if you compare above results for JoeDaredevil (17% in USDT vs 11% in euro).
The question remains if BTC based bots will perform as well with a decreasing Bitcoin. They should be able to make better trades if coins they trade catch up the 2020 losses against the Bitcoin. But they will not be able to surf Bitcoin’s increasing value any longer. USDT based bots will benefit from a rebounce of the US dollar. For now, looking at euro value, BTC based bots are the winners of 2020.