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 In case of disappointing results a Bot can be Withdrawn.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.
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.
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 In the first table find Remarks with “Withdrawn” and in the second table you can use the search in different ways. Find “/” to find all Withdrawn bots or use specific dates like: “/30-11”or “/30-11-2021”, for specific withdrawn dates.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.