Tips


BOTS Availability Status

If you are new in Bots and Crypto, use the Tips & Terms on this page to get acquainted in this area. You could start with the Purchase Checklist.

These three tables, under Menu-"Tips", show you how to determine your required characteristics of Bots, at a glance:  Bots Popularity, Selection & Spreading, Creator BOT-Names.

Tips

Hints and tips, must know, articles, facts, links and other interesting things to know for Bots users. Click a footnote x for more info.

  1. Tip # 1: Bots are not meant to be traded 1The Power of Compounding
    Over time by continuing to reinvest, done by most BOTS, compounding returns increase the trade-capital exponentially. As a Crypto-investor (or Forex (FX)), you should be aware of the importance of compound returns and its profitability. It is aimed at capital-growth where patience and reward go hand in hand.

    The drawback of this method is that you also increase the risk. By reinvesting your earnings, you can multiply your profits, but you can also lose part or everything suddenly.
    .

    Bots do the trading for you 2A bot is not comparable with shares (or stock). A bot is a personal-asset- manager. It will manage your (crypto)money.
    It will step into position when an increase is expected and will step out of position, into the basecoin (usually USDT), when a decline is expected.
    .

    Give them a chance to do just that 3If you just started(=buy) a bot, it still needs to take its position.
    If the bot still has an open position, you have to wait until the bot closes the current position. Then your money will join the next trade. That can be a matter of minutes or hours, but it also can take days or weeks! Something to be aware of.
    The graph in the App shows the history of a BOT from its start. When you start(=buy) a bot, that is your start and YOUR history with the bot.
    . A trading-strategy needs its time so you must give it that time.

    Most ro-bots use a programming model based on Artificial Intelligence (AI) and machine self-learning algorithms.
    Only few bots do not trade as such but just follow a coin.

  2. One starter approach is to buy (= start) with a dozen of bots.

    Buy Bots with different trading-strategies, different markets and coins 4The Bots step in at a suitable time. You will only enter the next position that the Bots buys. So if you start the Bot now, you will first have to wait until the Bot finds a good moment.
    This of course differs with the basecoin you choose.

    If you choose a Bot with BNB- or BTC-basecoin, it might be better to wait until BNB, BTC is a bit lower because the Bot just goes down as soon as you start it. That is your choice. With Bots with a USDT-basecoin it does not matter.
    For Bots that just follow a coin, like e.g. “The Big Friendly”, this does not apply.
    ,  and well spread risk classification. Then wait and see. Not hours or days but for instance once a week or every few weeks. See how your selection of bots performed.

    Compare it to what your investment had yielded otherwise. Then, after at least a quarter, halve- or full year, sell (= stop) under performing bots and put the money in the remainder of your portfolio by upgrading the remaining bots. Or start an other that better fits your targets.

  3. Bots will act for you.

    They are active 24 hours a day, 7 days a week. That does not mean that they are in position 24/7. Often the bots are out of position (= flat-line in cryptography view) and wait for the best moment to hop in (= take position) in a coin of their interest  5You can't see what or how much the Bot is trading. You can see if a Bot is trading when you toggle on “show cryptocurrency” and you see movement in the graph.. But then, at any time, this can also involve multiple coins.

    Some bots take position 6You can always start (=buy) a bot. But you'll have to wait for the bot to submit a new trade.
    Existing trades (which were opened before you were in the bot) will not be included.
    with part  or a percentage of their capital, in multiple coins. Something to be aware of.

    In case of a declining cryptocurrency market, bots are able to “hide” in their basecoin, usually USDT (stable-coin 7Stablecoins: Bridging the Network Gap Between Traditional Money and Digital Value. ). In other words, they get out of crypto positions. Contrary to direct investment in crypto (not through bots). This makes investment in crypto through bots less risky.

    Bots don’t win as much in a growing crypto market, but are able to protect your gains in a declining market. Therefore, choose your bot, and let it work for you like an asset-manager, in good times and bad times, for a longer period of time. Do not trade with bots yourself.

  4. Trading with crypto-currency is different from stock trading.

    Stock shares, bond-funds and stock-funds trading is more straightforward. Using single currency, like USD ($), Euro (€) or otherwise. Trading of crypto often involves multiple coins, most often USDt (=Tether)  or TUSD (= TrueUSDEtherium based) which is close to $, USD. Currency unit prices are quoted as currency pairs.

    The base currency, also called the transaction currency, is the first currency appearing in a currency pair quotation, for example, ETH is the base currency in ETH/BTC. A quote currency is the second currency quoted in a currency pair, for example, BTC is the quote currency in ETH/BTC.

    Base Coin  8To make a long story short: the basecoin of the bot can have a huge impact on your portfolio’s EURO-value. So it is important to be aware of the two kinds of basecoins the app offers (not yet counting basecoin called UWC). This is something users may find out the hard way.

    USDT / stable coin bots This type of bot is considered 'stable' in terms of EURO-value. If the Bitcoin price drops 50%, the bot will generally not drop the full 50%: it will sell it’s open positions ‘quick’, and ‘hide’ in the basecoin.

    This is exactly the purpose of a trading bot: Buy low, sell high. And be stable when there’s no opportunity for a trade. So when the market is expected to drop significantly, it will sell the open positions to prevent losses/losing profits.

    This does not mean the bot can never lose money! The bot can still lose money, but it’s expected to recover losses over time (drawdown). Bot creators will probably state that bot works as designed, although it is not fun to watch.

    The smart thing to do, is to sit out and wait for it to recover. (if you believe it is a good bot). Or sell it, and maybe try a different bot. First of all, give it some time and do not judge a bot on the first couple of trades.

    Crypto-basecoin (Bitcoin (BTC), Ethereum (ETH), BNB). This kind of bot follows the Bitcoin rate which is not considered stable. If the Bitcoin price drops, the bot’s EURO value will drop too. There’s no way for the bot to ‘hide’ in a stable coin. So if Bitcoin drops 50%, the EURO-value of the bot will drop 50% too.

    The same goes when the Bitcoin price rises 50%. The bot will gain 50% too!

    So a lot of opportunity to make (quick) gains, but it is also possible to lose a lot of money fast. But of course, you only lose money when you actually sell the bot (‘realized loss’).

    You could just wait and do nothing, waiting for the price to increase or you invest more on a sharp drop, so you could be back in profits faster.
    is only used in certain bot type for the bot to focus on increasing the given currency which is the Base Coin, and do not care about any specific currency pairs. e.g. If you set BTC as the base coin in a "Scanner Bot", the bot can trade any pair as long as it involves BTC, hence to have better chance to seize the opportunity. Sold and traded on markets in shares but instead are sold and traded in specific dollar amounts.

    However the base coins compared to the transaction currency can strongly influence the bot performance. The €uro value can be significantly different than the base coins, e.g., in many cases, the Bitcoin (BTC). Something to be aware of!

    In the Bots App see : "Your Assets"  9Your money is stored in TUSD.
    The Euro value you see, is an estimate based on the rate between USD and Euro.
      under "More". "Menu".

  5. It is recommended to spread funds over multiple bots.

    Thus other bots cover the loss you may get under bad market conditions, from one or more bots you own. Spreading means different algorithms in strategies and different and multiple cryptocurrencies (also see DCA).

    For that reason you should also spread over multiple risk factors. Risk classification: low risk “0” to high risk “12”, 0/12 to 12/12.

  6. Criteria to stop (=sell) a BOT.

    In principle (Tip # 1) “a trading-strategy needs its time, so you must give it that time” a halve or one year is reasonable for a good BOT. Any or all reasons why you could or should stop a BOT 10When you deposit money and start a bot on the BOTS app, this is available within 2 workdays for the bot you have chosen to trade with. When you stop a bot in the BOTS app, it also takes 2 workdays.

    When you deposit money and start a bot on the BOTS app, this is available within 2 workdays for the bot you have chosen to trade with.

    When you stop a bot in the BOTS app, it also takes 2 workdays. When switchen be aware of this.
    .

    • If you set a goal and the goal was reached you may want to stop. This can be for a specific BOT, multiple BOTS, or for your whole BOTS-portfolio.
    • If the BOT performance lacks your confidence. When, for whatever reason, the yield is not what you expected, as a percentage of the price. Be sure to be realistic about your expectations and give it a reasonable time. Then use the money to replace it or to upgrade a BOT in your portfolio based on your own experience.
    • The Risk Classification (RC) is dynamic and can change over time per BOT. Of course this is just an indication of the risk. Nonetheless it may be a reason to stop a BOT and replace it with an other one that better fits your requirements. That can be a higher or lower RC.
    • Portfolio re-balancing can be an important reason to stop a BOT. It can also be reason to revalue, upgrade, a BOT or multiple BOTS. This is to ensure inclusion of the required percentage of specific coins in your portfolio.
Relevant, yet unfamiliar, terms And concepts
  1. Know Your Customer (KYC).

    An important part of registration is the KYC process. This is a mandatory part of the Prevention of Money Laundering and Terrorism Financing Act.As part of this KYC process, every user of the BOTS app will be asked to identify themselves via a proof of ID.

  2. Hodl 

    Hodl (/ˈhɒdəl/ HOD-əl) often written HODL, is slang in the cryptocurrency community for holding the cryptocurrency rather than selling it. A person who does this is known as a Hodler.

    With regard to BOTS we have the term Dumbbots. This can be BOTS without an algorithm or intelligence to very sophisticated hold. These BOTS can vary from just buying a single or multiple coins (dumb), but can also have many different ways of "holding", timing end re-balancing mechanisms.

  3. Dollar-cost averaging (DCA). DCA Example 11Let’s say you want to invest 100 EURO in the 'The Big Friendly' Bot. This bot does not trade, but simply buys Bitcoin for you. So it follows the Bitcoin rate.You invest €100 in 1 transaction when the Bitcoin price is 40K (40,000.00 Euro). Your average price is now 40K. Then the price drops to 20K. Bitcoin needs to gain 20K (=100%) to make up for your loss. Compare this to investing €100 in 2 transactions. You invest €50 EURO at 40K, and €50 at 20K. Now your average price is 30K. And Bitcoin needs to gain 10K (=33%) instead of 20K. So your loss is recovered faster compared to investing the full €100 at once at 40K. When the price doesn’t drop it would have been better to invest the full €100 in 1 transaction.
    This is only known afterwards, since nobody can predict the future. But if you are ‘sure’ the price will always rise, or you just want to buy and hold, it might be ‘smarter’ to invest the €100 in 1 transaction.

    PS: Instead of buying at a significant drop (‘buy the dip’) you can also buy at fixed intervals: once a month, every 2 months, once a week etc.

    Note: Although USDT is considered ‘stable’, the value can still fluctuate because of the EURO-Dollar exchange rate. This could also be a motivation to buy USDT based-bots over a longer period of time.

    DCA is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.

  4. Drawdown

    With Hodl or with bots, with a non-stable basecoin, the maximum drawdown is actually always above 65-70%.So in that sense the drawdown for USDt-based bots will actually always be lower than Hodl or bots with basecoin BTC, BNB or ETH (the bots that do not use the stablecoin like USDt).

    The maximum drawdown is the percentage of loss during the life cycle of a bot.

  5. Liquidity Model, LM.

    RevenYOU LM 12The RevenYOU liquidity model ensures that a Bot cannot buy large amounts of a coin with little volume. Suppose a Bot sends a signal to RevenYOU saying: "I want to buy CELR for € 100,000". Then the RevenYOU liquidity model checks the volume of CELR and concludes that CELR has a low volume of only €300,000 per day. If you were to buy CELR for €100,000 you would influence the price of CELR too much and it can be difficult to sell for a good price.

    The liquidity model tries to prevent this problem by making the trade smaller. Instead of buying €100,000 worth of CELR, only €5,000 worth of CELR is bought by RevenYOU. The purchased amount will then be spread proportionally over the number of people who have the Bot.

    This means, that sometimes, you get a position for only 10%, instead of the intended 100%. The Bot was not able to buy the full 100% that it meant to buy. This is the result of the liquidity model of RevenYOU. That is also why there is a limit per Bot, and that some Bots are “Full”.

    Model to manage liquidity of bot investments. In terms of cryptocurrencies, liquidity is the ability of a coin to be easily converted into cash or other coins. Liquidity is important for all tradable assets including cryptocurrencies.

    Low liquidity levels mean that market volatility is present, causing spikes in cryptocurrency prices.High liquidity, on the other hand, means there is a stable market, with few fluctuations in price.
    Volumes and the number of market participants are important variables. In this context, the model can inhibit sell or buy of a specific coin.

  6. Liquidity Pool, LP.

    Where is my money? I do not see it instantly in the App. BOTS finances the money for you. The money that customers deposit (e.g through iDEAL) actually arrives later. The banks are closed during weekends, and do not execute any transactions.

    The same applies when you stop (=sell) a bot. The money is not directly transferred to BOTS account from Binance there will be some delay.Within the App, users expect the money to be available immediately. That is why BOTS pre-finances the money. They have a certain liquidity pool for this purpose. The maximum of this liquidity pool can be reached.

    If you deposit money at an exchange, e.g. Binance or Interactive Brokers or any other on-line bank, it often takes 1 to 2 business days before it is on the account.

  7. Quarantaine period.

    The time that a Bot is in test phase prior to be released into the production BOTS-App. 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.

    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.

  8. Backtesting.

    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.

    At its core, backtesting is a way for traders to try predicting whether or not a strategy will be profitable when implemented with real capital. Traders use backtesting to filter out any strategy that hasn’t been profitable historically.

  9. Portfolio rebalancing.

    Portfolio rebalancing  is a strategy that has been used by investors. First, an investor must determine how much of their portfolio they want to allocate to each asset. In the case of cryptocurrencies, each asset would be a coin. These allocations are simply the percent of each coin that should be represented in the total value of the combined portfolio.

    When it is time to rebalance the portfolio, the coins are traded such that the value held in each asset is once again equal to the percentages that were originally specified. Portfolio rebalancing outperforms HODL strategies historically.

  • BI Excel Spreadsheet with two sheets, by Thijs, contributor.


    Sheet 1 stores data about your bots and can be used to track performance and rebalance across bots. It has a ‘Coin KPI’ to assess in what coins you are investing through your bots. This could help in balancing your portfolio.

    Sheet 2 helps you calculate your ‘annualized return’ of your entire portfolio. Just enter your deposits and current value of your portfolio.

  • Good to know: Financial  and FAQ at RevenYOU bots.io.
  • Exchange: Binance, used by RevenYOU BOTS-platform.
  • Hodl Hodl: Global P2P Bitcoin trading platform that doesn’t hold funds.
  • ...
 

Footnotes

  • 1
    The Power of Compounding
    Over time by continuing to reinvest, done by most BOTS, compounding returns increase the trade-capital exponentially. As a Crypto-investor (or Forex (FX)), you should be aware of the importance of compound returns and its profitability. It is aimed at capital-growth where patience and reward go hand in hand.

    The drawback of this method is that you also increase the risk. By reinvesting your earnings, you can multiply your profits, but you can also lose part or everything suddenly.
  • 2
    A bot is not comparable with shares (or stock). A bot is a personal-asset- manager. It will manage your (crypto)money.
    It will step into position when an increase is expected and will step out of position, into the basecoin (usually USDT), when a decline is expected.
  • 3
    If you just started(=buy) a bot, it still needs to take its position.
    If the bot still has an open position, you have to wait until the bot closes the current position. Then your money will join the next trade. That can be a matter of minutes or hours, but it also can take days or weeks! Something to be aware of.
    The graph in the App shows the history of a BOT from its start. When you start(=buy) a bot, that is your start and YOUR history with the bot.
  • 4
    The Bots step in at a suitable time. You will only enter the next position that the Bots buys. So if you start the Bot now, you will first have to wait until the Bot finds a good moment.
    This of course differs with the basecoin you choose.

    If you choose a Bot with BNB- or BTC-basecoin, it might be better to wait until BNB, BTC is a bit lower because the Bot just goes down as soon as you start it. That is your choice. With Bots with a USDT-basecoin it does not matter.
    For Bots that just follow a coin, like e.g. “The Big Friendly”, this does not apply.
  • 5
    You can't see what or how much the Bot is trading. You can see if a Bot is trading when you toggle on “show cryptocurrency” and you see movement in the graph.
  • 6
    You can always start (=buy) a bot. But you'll have to wait for the bot to submit a new trade.
    Existing trades (which were opened before you were in the bot) will not be included.
  • 7
    Stablecoins: Bridging the Network Gap Between Traditional Money and Digital Value.
  • 8
    To make a long story short: the basecoin of the bot can have a huge impact on your portfolio’s EURO-value. So it is important to be aware of the two kinds of basecoins the app offers (not yet counting basecoin called UWC). This is something users may find out the hard way.

    USDT / stable coin bots This type of bot is considered 'stable' in terms of EURO-value. If the Bitcoin price drops 50%, the bot will generally not drop the full 50%: it will sell it’s open positions ‘quick’, and ‘hide’ in the basecoin.

    This is exactly the purpose of a trading bot: Buy low, sell high. And be stable when there’s no opportunity for a trade. So when the market is expected to drop significantly, it will sell the open positions to prevent losses/losing profits.

    This does not mean the bot can never lose money! The bot can still lose money, but it’s expected to recover losses over time (drawdown). Bot creators will probably state that bot works as designed, although it is not fun to watch.

    The smart thing to do, is to sit out and wait for it to recover. (if you believe it is a good bot). Or sell it, and maybe try a different bot. First of all, give it some time and do not judge a bot on the first couple of trades.

    Crypto-basecoin (Bitcoin (BTC), Ethereum (ETH), BNB). This kind of bot follows the Bitcoin rate which is not considered stable. If the Bitcoin price drops, the bot’s EURO value will drop too. There’s no way for the bot to ‘hide’ in a stable coin. So if Bitcoin drops 50%, the EURO-value of the bot will drop 50% too.

    The same goes when the Bitcoin price rises 50%. The bot will gain 50% too!

    So a lot of opportunity to make (quick) gains, but it is also possible to lose a lot of money fast. But of course, you only lose money when you actually sell the bot (‘realized loss’).

    You could just wait and do nothing, waiting for the price to increase or you invest more on a sharp drop, so you could be back in profits faster.
  • 9
    Your money is stored in TUSD.
    The Euro value you see, is an estimate based on the rate between USD and Euro.
  • 10
    When you deposit money and start a bot on the BOTS app, this is available within 2 workdays for the bot you have chosen to trade with. When you stop a bot in the BOTS app, it also takes 2 workdays.

    When you deposit money and start a bot on the BOTS app, this is available within 2 workdays for the bot you have chosen to trade with.

    When you stop a bot in the BOTS app, it also takes 2 workdays. When switchen be aware of this.
  • 11
    Let’s say you want to invest 100 EURO in the 'The Big Friendly' Bot. This bot does not trade, but simply buys Bitcoin for you. So it follows the Bitcoin rate.You invest €100 in 1 transaction when the Bitcoin price is 40K (40,000.00 Euro). Your average price is now 40K. Then the price drops to 20K. Bitcoin needs to gain 20K (=100%) to make up for your loss. Compare this to investing €100 in 2 transactions. You invest €50 EURO at 40K, and €50 at 20K. Now your average price is 30K. And Bitcoin needs to gain 10K (=33%) instead of 20K. So your loss is recovered faster compared to investing the full €100 at once at 40K. When the price doesn’t drop it would have been better to invest the full €100 in 1 transaction.
    This is only known afterwards, since nobody can predict the future. But if you are ‘sure’ the price will always rise, or you just want to buy and hold, it might be ‘smarter’ to invest the €100 in 1 transaction.

    PS: Instead of buying at a significant drop (‘buy the dip’) you can also buy at fixed intervals: once a month, every 2 months, once a week etc.

    Note: Although USDT is considered ‘stable’, the value can still fluctuate because of the EURO-Dollar exchange rate. This could also be a motivation to buy USDT based-bots over a longer period of time.

  • 12
    The RevenYOU liquidity model ensures that a Bot cannot buy large amounts of a coin with little volume. Suppose a Bot sends a signal to RevenYOU saying: "I want to buy CELR for € 100,000". Then the RevenYOU liquidity model checks the volume of CELR and concludes that CELR has a low volume of only €300,000 per day. If you were to buy CELR for €100,000 you would influence the price of CELR too much and it can be difficult to sell for a good price.

    The liquidity model tries to prevent this problem by making the trade smaller. Instead of buying €100,000 worth of CELR, only €5,000 worth of CELR is bought by RevenYOU. The purchased amount will then be spread proportionally over the number of people who have the Bot.

    This means, that sometimes, you get a position for only 10%, instead of the intended 100%. The Bot was not able to buy the full 100% that it meant to buy. This is the result of the liquidity model of RevenYOU. That is also why there is a limit per Bot, and that some Bots are “Full”.