Kalakukko – Page 2 – Bots Institute

January 1, 2021

Battle of the Bots pt. 3 update

In the Battle of the Bots series I will compare the performances of various bots. The monthly results of three series of battles between three trading bots of different botcreators will be posted for the next year. The goal is to evaluate the bots performance over a longer period of time, both in winning as well as in decreasing crypto currency markets.

In the third battle a long time favorite of many bots-users will compete against two BTC based bots. What difference does the base coin make?

JoeDaredevil by Boosting Alpha: This bot invests in 18 high volatility coins, lesser known coins with lower market volumes. Therefore it targets a relatively high profit potential. Estimated annual return is 129%. Risk level according to the bots app is 9/12. Basecoin USDT.
CBS (CryptoBaseScanner) by Altrady: The oldest bot on the platform. A unique algorithm that works by automatically analyzing the market history for each available market, checking current prices against previous support levels so that the bot buys low and sells high . Testing results predict a 36% return on investment (ROI). A risky bot according to the bots app, 10/12. Basecoin BTC.
DeFi Strategy by Dagobert Buck: The bot focuses on the Top 10 coins in the world of Decentralized Finance (DeFi), a strong emerging submarket within crypto with a lot of growth potential. It targets a ROI of 70% per year. The bots app rates it as a high risk bot with risk level 11/12. Basecoin BTC.

The following chart shows the results of the three bots over the past two months.

JoeDaredevil, represented by the blue line, has been able to increase the amount of base coin, being Theter (USDT), while CBS (grey line) and DeFi strategy (orange line) have had a hard time finding and trading coins that outperformed their base coin BTC. It looks like CBS traded a coin that has experienced a free fall, losing more than 25% overnight (was it XRP?). Unfortunately the botcreator cannot give a clarification. Altrady’s reaction:“Unfortunately I cannot provide an answer myself because I do not receive any feedback from RY as to which signals have or have not been sold. I also suffer from it. I lost 30% in one night.”

Because of the rapid growth of BTC, the chart in euro view gives a completely different picture.

Final score after two month in basecoin (result after one month):

1. 1. JoeDaredevil by Boosting Alpha : +17,16% (+10,85%)
  2. DeFi Strategy by Dagobert Buck: -7,89% (-6,05%)
  3. CBS by Altrady: -22,07% (+0,06%)

Final score after two month in euro (result after one month):

1. 1. DeFi Strategy by Dagobert Buck: +85,38% (+27,75%)
  2. CBS by Altrady: +56,92% (+36,07%)
  3. JoeDaredevil by Boosting Alpha : +11,49% (+7,12%)

2020 has clearly been a very good year for Bitcoin, and therefore for trading bots with Bitcoin as their basecoin. Because of the enormous increase in value of Bitcoin (today’s value is almost 4 times last year’s value), the value in euro’s of BTC based bots has seen enormous increases as well.

The US dollar on the other hand (and with it USDT as the US dollar based stablecoin) has decreased almost 10% in value last year, compared to the euro. This is discounted in the results of trading bots based on the stablecoin, which can be seen if you compare above results for JoeDaredevil (17% in USDT vs 11% in euro).

The question remains if BTC based bots will perform as well with a decreasing Bitcoin. They should be able to make better trades if coins they trade catch up the 2020 losses against the Bitcoin. But they will not be able to surf Bitcoin’s increasing value any longer. USDT based bots will benefit from a rebounce of the US dollar. For now, looking at euro value, BTC based bots are the winners of 2020.

December 30, 2020

Battle of the Bots pt. 2 update

In the Battle of the Bots series I will compare the performances of various bots. The monthly results of three series of battles between three bots of different botcreators will be posted for the next year. The goal is to evaluate the bots performance over a longer period of time, both in winning as well as in decreasing crypto currency markets.

In the second battle the following B-bots will compete (all three starting with the letter B).

Beetlejuice by The Noogieman: This bot scans 6 different coins being ETH, TRX, ADA, VET, TFUEL and THETA. It uses many different concepts to try to determine the best entry and exit points for trades and uses both stoploss and takeprofit levels. Estimated annual return is 48%. Risk level according to the bots app is 8/12.
Dr. Block by Rave before the Machine: This bot only invests in Bitcoin and is a risk spreader using small steps when getting into its asset. Analysis is key, to ensure profits are secured and possible losses are reduces. Testing results over the first half of 2020 show a 46,2% return on investment (ROI). A lower risk bot according to the bots app, 6/12.
Botzilla by Hot Bots Team: The behavior of this bot is as assertive and aggressive as the name might suggest according to the botcreator. The bot solely trades in the most liquid and biggest cryptocurrencies. It targets a ROI of 20% per year. The bots app rates it as a mild risk bot with risk level 7/12.

The chart shows the results after two month of comparing these bots.

In the chart the blue line represents Beetlejuice, the orange line Dr. Block and the grey line Botzilla. All three bots managed to achieve positive result over the last month.

The score after two months (score after one month).

Beetlejuice by The Noogieman : +36,15% (+14,24%)
Dr. Block by Rage before the Machine: +11,24% (+5,23%)
Botzilla by Hot Bots Team: +8,65% (+4,04%)

In the second month all three bots continue to show more or less the same growth rate as the first month. Beetlejuice, being the riskiest of the three bots according to the Bots app, shows the most volatility, which pays off in the current growing crypto currency market. Both Dr. Block an Botzilla are less volatile and less active, showing a flatline for part of the second month.

Tomorrow an update of the third and last battle of three bots.

December 29, 2020December 29, 2020

Battle of the Bots pt. 1 update

In the Battle of the Bots series I will compare the performances of various crypto trading bots. The monthly results of three series of battles between three bots of different botcreators will be posted for the next year. The goal is to evaluate the bots performance over a longer period of time, both in winning as well as in decreasing crypto currency markets.

In the first battle the following trading bots are competing.

Power of Pi by Boosting Alpha: This bot scans 7 different coin markets using the mysterious constant value Pi in it’s algorithm. The bot has a calculated cumulative return in 24 months of 94% with a high volatility risk according to the botcreator. Risk level according to the bots app is 8/12.
Top 10 Balance 2 by Dembots: A long term steady bot which checks top performing coins with the highest volume every last 30 days. A concept similar to some well proven ETF strategies. The bot won’t win on big spikes, but if the market wins, you win. A high risk bot according to the bots app, 11/12.
Sweet Orange Mia by Agga Technologies: A balanced long term risk strategy that only trades Bitcoin. It trades on a small and medium timeframe to ensure it’s ability to react smoothly to moving market trends. Yearly testing results predicted a 2020 performance of 89,47%. A mild risk bot according to the bots app with risk level 8/12.

The results of these three bots after two months is represented in the following chart.

In the chart the blue line represents Power of Pi, the orange line Top 10 Balance 2 and the grey line Sweet Orange Mia.

The score after two months in percentages (score after one month):

Top 10 balance 2 by Dembots: +58,73% (+45,23%)
Sweet Orange Mia by Agga Technologies: +23,07% (+8,26%)
Power of Pi by Boosting Alpha: +14,45% (+6,16%)

In the growing crypto market all three bots have taken advantage and been able to increase the value of their investment over the past month. Top 10 Balance 2 is “always on”, always in position, and dependent on performance of the Top 10 coins. It has benefited from the growth of bitcoin and ethereum, but suffered from the decline of ripple. Sweet Orange Mia and Power of Pi take to the sidelines when their algorithms suspects a decline, as can be seen by flatline periods in the chart. They should be able to protect profits better in case of a downtrend in the crypto market, hence their lower risk profile. The future will tell which bot performs best, and if they are able to live up to the promises of their predicted annual results of 90%.

Tomorrow an update of the second battle of three bots.

December 27, 2020July 5, 2021

Performance of single coin Ethereum and Bitcoin trading-bots update 2

A new bi-weekly update on the performance of the Bitcoin and Ethereum crypto trading bots on the Revenyou Bots platform. This blog adds two weeks of data to the last update found here.

Performance of single coin Ethereum and Bitcoin trading-bots update

Bitcoin has been on an exeptional bullrun rallying more than 45% in value in the past two weeks to more than $28.000. If we compare that run to the performance of the Bitcoin crypto trading bots we see the following results.

In percentage (2 weeks ago):

1. Bitcoin (green line): +154,84% (+72,33%)
2. Himalaya by botcreator Boosting Alpha (orange line): +50,60% (+28,82%)
3. Sweet Orange Mia by botcreator Agga Technologies (blue line): +31,63% (+14,12%)
4. Dr Block 2 by botcreator Rave before the machine (yellow line): +31,62% (+27,88%)
5. Dr Block by botcreator Rave before the machine (grey line): +25,71% (+19.03%)

Although all bots have been able to add value, the differences are remarkable. Just like in my last blog where I compared the performance of my portfolio of crypto trading bots to a holding portfolio of crypto currency coins, I want to use the Sharpe ratio to help understand the return of the investments compared to their risk. To briefly summarize the usefulness of the ratio:

- The Sharpe ratio adjusts a portfolio’s past performance for the excess risk that was taken by the investor.
- A high Sharpe ratio is good when compared to similar portfolios or funds with lower returns.

Comparing the Sharpe ratio’s of Bitcoin and the BTC trading Bots provides a fairer picture of the performance. The results are represented in the following chart.

A higher Sharpe metric is always better than a lower one because a higher ratio indicates that the portfolio is making better investment decisions and not being swayed by the risk associated with it. Sharpe ratio grading thresholds are commonly interpreted in the following way:

- <1: Not Good
- 1 – 1.99: Ok
- 2 – 2.99: Really Good
- >3: Exceptional

With Sharpe ratio scores ranging from 2,96 to 4,46 the Bitcoin trading bots have shown very good to exceptional results. Bitcoin however, with a Sharpe ratio of 10, is in a league of its own.

Finally the chart for Ethereum and the ETH trading bots.

Ethereum is showing very strong growth in value over the past two weeks. The ETH trading bots show a varied picture. In percentages (2 weeks ago):

1. Ethereum (grey line): +96,88% (+58,45%)
2. Refreshing Grey Mia by botcreator Agga Technologies (blue line): +22,70% (-1,22%)
3. Dr. Spock by botcreator Rave before the machine (orange line): -12,81% (-12,05%)

Refreshing Grey Mia has performed very well and turned its loss into a good profit. Dr. Spock has fallen further and is waiting for an update by the botcreator.

As noted in previous blogs, the crypto trading bots are looking for an outperformance by holding on to accumulated profits in a declining market. So far they have had no chance to do so. I will continue to compare the results of the crypto trading bots to the performance of their coins to see if outperformance is possible in the longer run.

December 25, 2020July 5, 2021

4 Months of Crypto Trading Bots performance compared to holding Top 20 crypto coins

A month ago I posted a 3 month comparison between my crypto trading bots portfolio and a portfolio in which I’m holding 20 different crypto currency coins. The goal is to see if the trading bots can outperform the crypto currency market.

3 Months of Bots performance compared to a Top 20 coins HODL

Now, with a month of extra data, the picture should become clearer. Are the crypto trading bots able to generate a higher revenue than the crypto currency market? Firstly let’s have a look at where we left of last month.

Bots vs Top20Coins HODL — 3 month performance of crypto trading bots (blue line) and holding rhe Top 20 crypto coins (orange line)

Due to a booming November month the Top 20 crypto currency coins portfolio (orange line in the chart) turned an average loss into a 12,65% average profit (Nov. 23rd), and closed in on the result of the portfolio of crypto trading bots (blue line) of 14,76%.

What happened in the period of Nov. 24th until Christmas? The results are in the chart below.

4 month performance of crypto trading bots (blue line) and holding rhe Top 20 crypto coins (orange line)

As you can see the last month has been a period of great volatility. The results over the past 4 months are as follows (3 month results):

Portfolio of crypto trading bots: +16,34% (14,76%)
Portfolio of Top 20 crypto currency coins: +7,33% (12,65%)

The crypto trading bots have been able to gain while the average value of the crypto currency coins lost more than 5% in value. The outperformance of the trading bots is 9% over the 4 month period.

A good way to be able to compare both portfolios even better is to use the Sharpe ratio. The Sharpe ratio was developed by Nobel laureate William F. Sharpe and is used to help investors understand the return of an investment compared to its risk. Risk in this case is equal to volatility. A portfolio with a high degree of volatility is riskier than a portfolio with lower volatility. High volatility brings with it chances of higher profit but also chances of higher loss.

The Sharpe ratio adjusts a portfolio’s past performance for the excess risk that was taken by the investor.
A high Sharpe ratio is good when compared to similar portfolios or funds with lower returns.

In the chart below we see the Sharpe ratio of the crypto trading bots portfolio represented by the blue line and the portfolio of 20 crypto currency coins represented by the orange line.

Sharpe ratio of the portfolio of crypto trading bots (blue line) and the portfolio of 20 crypto currency coins (orange line)

The conclusion that can be drawn from the higher Sharpe ratio of the crypto trading bots portfolio is that their risk-adjusted return is also better than when simply holding 20 crypto currency coins during the last 4 months.

Next month in a new update we will see if the trading bots can build on their outperformance or if there is another boom in the crypto currency market which makes a simple coins hold more favorable. If you have any questions or suggestions don’t hesitate to comment.