Withdrawn: Why Bots are removed from the BOTS-platform

The slogan “Bots trade better than humans” and “Trade like a pro without being one” can only come true when a bot outperforms the market. Meaning: to step in when its coin(s)-course value is rising and step out when the price gets lower.

The time that a Bot is in test phase prior to be released into the production BOTS-App is the Quarantaine period. This starts with a paper-trading environment and concludes with comparing the quarantine results to the backtesting results supplied in the beginning of the quarantine period.

Backtesting is a mathematical simulation used by traders to evaluate the performance of a trading-strategy. The simulation leverages historical market data in an attempt to calculate how well a trading-strategy would have done in the past.
Some bots show the backtesting results in their description.
This could look like: 06-2018 till 03-2021:  140% Annual Max drawdown: -60%. It gives a indication of the potential yield but also of the potential loss a bot can make.

Following this period, the market-cap will get slowly, increased. This is to make sure that BOT-Creators have the ability to get the right fills and manage the positions properly. This all is done to further improve the overall quality and stability of the Bots that are active on the platform. In case of disappointing results a Bot can be Withdrawn.

Below this is a worst case, but real life, example of a bot that performed great in the test period during a bull market. It proved however not to be able to hold the profit or be profitable during a bear marked. Actually it made a dramatical loss even in a stable market.

Screenshot_2021-12-20-Pennywise by Trademasters.
Screenshot_2021-12-20-Pennywise

Unfortunately, after more than one year of experience, this is what is happening now. The maximum drawdown is a worst case scenario that could happen, but should not happen over a too long period of time. In particular many bots newly introduced this year 2021, by mostly new Bot Creators, proved to underperform, often by more than -50 to even -87%,  over a period of 6 to 9 months.

Withdrawn_20211221-Bots
Withdrawn Bots

Prior to being removed, the states is forced to “FULL” so as to prevent it from starting. Owners will be informed of the removal-states and will be able to  stop the bot themselfs or wait for automated transfer of the €-amount to your available funds.

In the Creator BOT-Names and Selection & Spreading tables you can find under-performing bots. In the first table find Remarks with “Withdrawn” and in the second table you can use the search in different ways. Find “/” to find all Withdrawn bots or use specific dates like: “/30-11”or “/30-11-2021”, for specific withdrawn dates.

Bots now have a bot performance monitoring specialist to better be able to quantify every aspect of a bot’s lifecycle. The latter may be the reason that during the last and coming months, a whole selection of bots have been and will become removed from the RevenYOU BOTS-platform. This should make the reasonings for removal a lot more transparent.

In “How crash-proof are Bots?“, we address the capability of bots to at least follow the marked but the target should be to at least outperform the market. Otherwise the phrase “Trade like a pro without being one” will not hold.

Related: Popularity Poll: Bot Creators Top-15, with 77 user-ratings.

One month in the live of a Bot: “At the top”, 2nd period

One month in the live of a Bot is short, too short to judge the profitability of a bot. Three months should be regarded as a  minimum period. See Tip#1 and Criteria to stop.
This is the second month-period after I started this bot on 12 October 2021.

At The Top second month

This second month, mid November/December was very turbulent for Bitcoin (BTC) and then, as usual, for all cryptocurrencies. The crypto market crashing in the weekend of 4 December printed the strongest bearish candle since last May. This includes the weekend-sell-off from BTC of 58,000 to 43,000 USDT.

Bitcoin holders realised the third largest on-chain capitulation in history over this weekend, with over $2.18B in realised losses. “A correction was imminent and this weekend 380,614 traders were liquidated for a $2.36B. … $BTC aggregate futures 1Futures are derivative financial contracts that obligate the parties to transact an asset at a predetermined future date and price. The buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.  open interest -$5.423 billion. The market was over-leveraged and a correction was needed to “reset” the open interest and flip the perpetual funding negative.”

Bitcoin (BTC USD) declined with 26% in this period, while most altcoins declined much more than that.

TradingView BTC November/December 2021TradingView BTC November/December 2021
TradingView BTC November/December 2021

What was the cause of this sudden crash? The pandemic is still causing many problems not only for the financial world. The new coronavirus-variant is leaving investors wary of what is still to come. Due to the pandemic and new policies implemented by central banks worldwide to save the economy, inflation has gone through the roof. The inflation in the €urozone is now up to 5%.

The stock markets already looked panicky during these weeks and this panic eventually hit the crypto market as well.
Of course, these crashes are relatively ‘normal’ in crypto. The volatility in the cryptocurrency market is always high. Panic, but also trade-strategies can cause sudden moves (candles) like the one we saw over the 4 and 5 December Sinterklaas weekend.

TBF-AtTheTop

Interesting to see the comparison with the The Big Friendly.bot (BA), a bot that offers an easy way to invest in Bitcoin. It does not trade but just follows the BTC-market (it shows the trend, do not mind the % or €-amount).

After a few weeks of dormancy the bot started trading.

Surprisingly, the “At the top” was my only bot that took advantage of the BTC-decline and jumped from 32% to a yield of 58%, a gain of 26%.  The second jump in value during, the now, two-month observation period.

2ND month At The Top
2nd month At The Top.

So far this bot made only 2 or 3 trades during this period and these were very successful, yielding currently +60% if its USDT value (displayed in €uero). It then went into dormancy again, using a minimum of trading cost.
I am as much curious as your are, as how this will develop.

Previous: One month in the live of a Bot: “At the top”, this includes the bot description: At the top by Bloqtec (BL).

Remember, this is not a financial advise. Performance results in the past are not representative nor a guarantee for future positive results.

Piet, BI.

For context see: the Tables-Quadrant 

 

 

Footnotes

  • 1
    Futures are derivative financial contracts that obligate the parties to transact an asset at a predetermined future date and price. The buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.

Boosting Alpha trading-Bots performance per November 2021

Boosting Alpha trading-Bots performance per November 2021

Boosting Alpha logo

The month of November 2021 was not the best month for our trading algorithms. On average the bots lost roughly 4,5% last month (both in crypto and in €UR). Most of the BTC basecoin bots managed to generate a modest profit last month, and the majority of USDT basecoin bots generated a loss.

The HODL the Bottle bots (intelligent rebalancers) were most impacted last month since the market as a whole went down quite a bit. Bitcoin, BTC declined with 11% last month while most altcoins declined more than that. The market as a whole has difficulty finding a direction, will it go up or down?

The month of December is usually quite an active month in crypto. Let’s see what it brings.

Roy Lenders, Boosting Alpha.

 

See : Boosting Alpha introducing BTC/BNB based Bots.

Laika and the Quants (LQ) trading-Bots performance per November 2021

LAIKA November Performance 2021

Laika and the Quants (LQ)

November has been a turbulent month for the global markets, not only for Crypto, with both steep declines and upward trends. LAIKA’s bots overall have some very profitable.

We’re proud to say that for the second month in a row, one of our bots is the best performing bot on the entire ‘BOTS by Revenyou’ platform. Our debuting bot, NFT TrendBot, obtained a return of 77.8% in November alone.

Laika and the Quants bots team (LQ).