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.

Performance Bitcoin and BTC Bots

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%)
  1. 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.

Sharpe ratio Bitcoin and BTC Bots

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.

Performance of Ethereum and ETH 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.

Profile: DemaTrading.ai (DT), Bots Creator

DemaTrading

DemaTrading.ai was founded in 2020 with the idea to help traders reach an audience. Our team, of about a dozen professionals, including freelancers and  algo- suppliers, has years of experience in trading in most financial markets, both manually and automated. Most of our experience is within the crypto and forex markets. We also have an extensive background in artificial intelligence (ai), including machine learning (ml). After years of working in these markets we met a lot of people who had good trading strategies, developed over many years, with trial and error. A lot of these people had the trading skills, but not the technical skills to automate their strategies and publish their bots on public platforms. Even if they have the skills they often do not want to spend the time on programming, as this brings a lot of extra work. They want to focus on trading, and we help them to do just that.

Meeting many people who felt this way, the idea of DemaTrading.ai came to live. We want to help traders to focus on their trading and we take care of everything else. This means that both manual- and algorithmic-traders that have their trading automated already, can use our service. We sit down with these traders, and in case they trade manually we help them to automate their strategy first. After automating your strategy we can extensively test the algorithms on profit, risk, drawdown, and improvement possibilities. If the performance is not good enough, we will not publish the strategy. Publication requires a minimum quality guarantee. After optimization we deploy the algorithm in bots on our servers and we take care of all technical aspects. In addition we do the sales and marketing activities. You, the developer of the algorithm, just needs to provide your bank account details to get paid periodically. We chose for this approach to be able to offer traders a way to build up a form of passive income. For the trader this setup is a set-and-forget strategy while we manage everything ongoing.

To ensure full confidentiality we sign a non-disclosure agreement before you reveal your algorithm. After signing the contract we are contractually obliged to keep it a trade secret, and we can not secretly use your algorithm in any way. We also take the highest security measures that we can to prevent any kind of security breach. The algorithms run on AWS servers, 24/7 availability, that are highly secured, and the servers do not allow any incoming connections from unknown devices. The servers do not have a public IP associated with them.

If you have an original and/or unique algorithm that you think will sufficiently perform and that you would like to get published, have a look at our website:
www.DemaTrading.ai. We will be happy to help you automate and profit from your own ideas.

We expect that around february 2021, the first bots under the name DemaTrading.ai, will become operational on the RevenYOU-BOTS-Platform.

Demian Voorhagen,  co-founder of DemaTrading.ai

 

Performance of single coin Ethereum and Bitcoin trading-bots update

Two weeks ago I shared the performance of the single coin bots trading Bitcoin and Ethereum on the Bots platform, in a blog post (see link underneath). Today I will share an update with two weeks of additional data.

Performance of single coin Ethereum and Bitcoin trading-bots

Two weeks ago we saw a sharp fall in prices of both Bitcoin as well as Ethereum. As shown in the previous blog some bots handled that correction better than others. In the last two weeks we have seen recovery of prices to previous highs and after that a market that moved sideways to slightly downward in the past days. How did the single coin bots handle this volatility? Let’s first have a look at the Ethereum bots chart.

11-week performance of the single coin Ethereum bots

The grey line represents the Ethereum price. The Ethereum bots are Dr. Spock by botcreator Rave before the Machine (orange line) and Refreshing Grey Mia by Agga Technologies (blue line). The results after eleven weeks are (results two weeks ago):

  • Ethereum: +58,45% (+39,5%)
  • Refreshing Grey Mia: -1,22% (-9,76%)
  • Dr. Spock: -12,05% (-11,15%)

Compared to two weeks ago Ethereum coin has shown an increasing outperfromance to the bots gaining almost 19%. Refreshing Grey Mia gained 8,5% in the same period, while Dr. Spock fell almost an additional 1%.

Next up the Bitcoin bots. Let’s have a look at the chart.

9-week performance of the single coin BTC bots

Bitcoin (lightblue line) is traded by four single coin bots. Himalaya (orange line) by Boosting Alpha, Dr. Block (grey line) and it’s sibling Dr. Block 2 (yellow line) by Rave before the Machine and Sweet Orange Mia (dark blue line) by Agga Technologies. The results over the last 9 weeks are (compared to results over 7 weeks):

  • Bitcoin: +72,33% (+56,3%)
  • Himalaya: +28,82% (+11,6%)
  • Dr. Block 2: +27,88% (+20,6%)
  • Dr. Block: +19,03% (14%)
  • Sweet Orange Mia: +14,12% (+15,5%)

The nice recovery of Bitcoin to previous all time high levels has been followed by Himalaya, improving from worst performing to best performing Bitcoin bot. Dr. Block 2 shows the same steady growth as before as does Dr. Block. The only bot that didn’t gain compared to two weeks ago is Sweet Orange Mia.

Next update in two weeks time. You can subscribe using the Orange sign up box next to this blog to receive Blog-updates  in your mailbox.

Profile: Dembots (DE), Bots Creator

business-idea-success

The goal of Dembots is to offer people an alternative to spread risk. Not offering trade bots, but a bot that has a buy and hold strategy that automatically re-balances your portfolio for you.
I have a one person business, with years of forex- and crypto-trading experience. With both, manual and automated algorithms. I have a degree in Artificial Intelligence (AI).

The current Dembots series is based on the idea of the S&P 500 and similar funds (roughly speaking). The bots buy the top coins (sorted on volume), keep them for a period of 2 weeks (currently). After that period it sells all the coins and re-buys them again, evenly divided. So if you for example start with 50 Euro in Bitcoin and 50 Euro in Ethereum, and this would grow to €55 in Bitcoin and €65 in Ethereum. The bot would sell both coins and then purchase them again for €60 each. This ensures you took a part of the profit you got from your Ethereum spike, and you never invest in one coin specifically. You invest in the general market, if the market raises, your investment raises. This could also be beneficial if a coin has dropped in price. The bot will increase the funds after re-balancing, and if the coin raises back to its old price you profit from that.

The technique utilized is based on machine learning, artificial Intelligence (AI), continuously optimized to, generate optimal risk on Return On Investment (ROI).  Most bots have a meaningful names like ‘Top10 Balance.bot’, “Top10 Balance2.bot”. “Top20 Balance.bot” and “Top30 Balance.bot”.
Currently all Dembots bots run on the RevenYOU-BOTS-platform.

Demian: “Previously I have developed algorithms.
Currently I am in the process of setting up a company where you can submit your trading strategy/algorithm and we will publish it for you. You do not need to have any experience. All you do is share your strategy and your bank account. Then we pay you a monthly fee for your part of the profit, that comes from the algorithm that you developed and supplied. We do the coding, serving, publishing, backtesting and strategy-optimization (including machine learning models).

⊗ Update 18 december 2020:
The latter service is now available on Dema trading.
DemaTrading

DemBots will no longer develop bots under this name but continue the work with a larger team in the company DemaTrading.ai.

 

 

 

Battle of the Bots pt. 3

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 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.

Let’s have a look at the results after the first month of comparing these bots.

Battle of the Bots 3 – results in basecoin

In the chart the blue line represents JoeDaredevil, the orange line DeFi Strategy and the grey line CBS. JoeDaredevil has done a good job gaining more than 10% last month. Because of last months big increase in value of Bitcoin, the BTC based coins are having a hard time trading profitably. It is hard to step into a BTC-pair position with a coin increasing more in value than BTC. The BTC based bots benefit from the growth of BTC in another way, namely through their appreciation in euro.

If we compare euro results instead of basecoin results we see a different chart.

Battle of the Bots 3 – results in euro

Now we see that the BTC based bots CBS (grey line) and DeFi Strategy (orange line) outperform JoeDaredevil (blue line). The rise in value of BTC against the euro, the 15% correction of BTC and the recovery from that correction are clearly visible in the grey and orange price trendlines. JoeDaredevil posted a lesser result in euro than in basecoin because of the rise of the value of euro against USD(T).

Final score after the first month in basecoin:

      1. JoeDaredevil by Boosting Alpha  : +10,85%
      2. CBS by Altrady: +0,06%
      3. DeFi Strategy by Dagobert Buck: -6,05%

Final score after the first month in euro:

      1. CBS by Altrady: +36,07%
      2. DeFi Strategy by Dagobert Buck: +27,75%
      3. JoeDaredevil by Boosting Alpha  : +7,12%

The euro results of BTC based bots depend heavily on the performance of Bitcoin. Buying these bots is a good strategy if you believe in the future of the biggest crypto coin. Because of this dependency, the risk of these bots is higher than of bots based on a stable coin like Tether (USDT). Determine your risk appetite before choosing the bot that suits you best.

I will continue to follow the performance of these three bots and report back at the end of december with a new interim score.

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