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.
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.
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.
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.
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.
Remember, this is not a financial advise. Performance results in the past are not representative nor a guarantee for future positive results.
For context see: the Tables-Quadrant +
- 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.