As everyone has noticed, all markets took a big hit in January. The overall crypto market lost over 1 trillion in value and the Nasdaq was down 15%, on track for its worst start of the year ever. The sharp pullback across markets was largely driven by fear of higher interest rates and potential reopening consequences.
We have experienced such declines several times now and expect them to continue to occur at least once or twice a year for the foreseeable future. It will take time and further maturation of the industry before we will see real differentiation in price action during such periods of market stress. For us, these periods are viewed as healthy in the sense that they wash out a lot of leverage and excesses, and provide the opportunity for great returns.
Above an overview is provided of the LAIKA bots in January 2022, where it is obvious that the buy-and-hold portfolio bots had a hard time, while the trend bots picked their enter/exit timing ranging from average to very well.
We are confident that the future will bring not only less of these declines, but new LAIKA bots that thrive under these circumstances, and new LAIKA bots that do not depend on the market fluctuations at all.
Laika and the Quants bots team (LQ).
Here are the results of the month of January 2022 for all of our trading bots. As everybody knows the month of January was a real disaster on the crypto markets, with BTC nose-diving with more than 20% and most other coins declining more than that.
During this month on average our bots declined with 6,8% in crypto and 8,8% in Euro terms. Obviously all trading bots with the BTC basecoin declined in Euro together with the value drop in Bitcoin. On the USDT based trading bots, lots of them stayed out of the markets or exited the market with a small drop. Notable exceptions here to our HODL series where most HODL bots decided to stay out of the market most of the month. Primarily our higher-risk USDT based bots unfortunately generated quite some losses comparable to the overall market drop.
The crypto market has now been in Bear territory for 3 months now, lets hope the bottom of the market has been reached and that we will move into more favourable market sentiment again. In those 3 months BTC declined from USD 68.000 to USD 38.000 now which is a 44% decline. Most other coins however declined with more than 50% from their highest levels. In contrast our bots declined on average with 16% in basecoin and 21% in Euro over these 3 months.
As we all know, in the crypto spot market it is only possible to take Long positions.
Roy Lenders, Boosting Alpha.