How to Classify and typify BOTS?

Classification and typification of BOTS is an interesting  subject. In the blog post: Newcomer, Beginner approach to (RevenYOU) BOTS, it is described how to go about to purchase your first few Bots.
From experience we know that this is often the way the knowledge develops, based on growing interest end investments.  You want to know more about Bots and Cryptocurrency-Markets, behavior and the impact to your yield and risc.
While building a growing Bots-portfolio more and more question popup and need to be answered.

This was the reason to create a new page: Classes, Types of BOTS on the Bots Institute website. Although the text starts with: “Quick overview… ” these are many complexities involved in selecting the best bot for your purpose. The “Classes and types” table is structured with a matrix, in such way that it tries to trigger your interest and directs you into the required information sources available on the BI-website.

In addition being structured it includes many links and some footnotes. In this way it is simply a matter of clicking the link of your keyword to get to the relevant information, and back into the table.

Classes and types of bots table-matrix
Part of Classes and types of bots table-matrix
Classes and categories

At the highest level the Bots have been classified in two classes:
Trading Bots and Hodl Bots.
These two classes have there own very specific  and distinguishing characteristics.

These two classes can be divided into categories as follows:
• Class: Trading: Category:  1, 2, 3.
• Class: Hodl:  Category:  A, B.

In the first table-matrix the most important five characteristics are listed the left side. Then, at the right site of the matrix, it shows the respective values for particular categories of bots. Notice the differences between the two classes but even more between the two Hodl categories.

The Dumbbots need special care. While, the so called, “genuine bots”, act as your personal portfolio manager, the Dumbbots do not. These bots just buy a cryptocoin at the start and hold the coin as long as you do not sale (=stop) the bot. Meaning it just follows the marked, up or down, high or low. That means that trading, or not, is your own responsibility.

For instance, with regard to the Basecoin the matrix  value=”All” means all cryptocoins. In practice this is currently limited to  Binance BNB (Binance Coin), Bitcoin BTC (Bitcoin), EtheriumETH (Etherium), Tether USDT (Tether) and a single Uwezocoin UWC (Uwezocoin) bot.

Properties and Attributes matrix

The bottom part of the table contains the Properties and Attributes matrix.

In this second matrix the most noticeable properties and attributes are listed.  This shows a diversity of values with very different implications and impact. All keywords and their value may, or may not or more or less, influence your decision to buy, keep or sell a bot in your portfolio.

As an example the Bot Creator (®, ™, Label), may deem highly important to some person while others couldn’t care less.
In particular the combination of Bots Popularity Polls and the Creator name is a key property for some (potential) investors.

To view the full table see page: Classes, Types of BOTS.
Remember on the page, click the link of keywords, properties or attributes, to get to the related information.

 

Boosting Alpha trading-Bots performance per April 2021

Boosting Alpha-April 2021

Boosting Alpha logo

The month of April was an excellent month for our 48 trading bots.
On average the return on our bots increased with 24,5% in crypto terms (20% in EUR value). This compares very favourably with the price of the Bitcoin which decreased with 5% during the same month.

Our 3 new Dagobert Buck trading bots had a very good first month while the 3 new The Noogieman trading bots unfortunately started the first month with a loss.

Now working hard on new bots for our new brand “Illuminati” where we try to introduce some new trading concepts, again with a focus on high-risk bots (which are generally favoured on the trading platforms).

 

Roy Lenders, Boosting Alpha

 

The first BOTS (by RevenYOU) millionaire: Boosting Alpha remarks

Boosting Alpha trading-Bots mid April 2021

Where the BOTS platform today put out a press release to have launched its first BOTS millionaire, it is very likely this person became a millionaire thanks to one or more of our trading bots. Our trading bots are experiencing a very good April month already (after the month of March was more stable). This month our bots on average already generated 23% return.

The average return of our bots is now 126% while the average bots lifetime period is probably around 7 to 9 months now. The average return per bot per month is now at 17% per month which is really a crazy number if you ask me.

Our top bots this month are “All You Need”, “Joe Dare Devil”, “Roar of the Tiger” and our new HODL top 15, 35 and 40 bots. They all generated more than 50% return in the last two weeks.

Roy Lenders, Boosting Alpha

 

Source: The first BOTS millionaire is a fact.

 

Boosting Alpha trading-Bots performance per March 2021

Boosting Alpha trading-Bots performance per February 2021Boosting Alpha trading-Bots performance per March 2021

Again the end-of-month overview of all bots from Boosting Alpha, The Noogieman and Team Dakar.

After 3 very bull months, it was no surprise to see the month of March being a more zig-zag month. This sideways market benefited the bots that make more longer-term trades and bots that trade more often were sometimes put on the wrong foot with the continuous stream of false signals coming from the sideways market.

On average across all of our bots the results have been stable in March in crypto terms with an average increase of 3,7% in Euro terms, primarily caused by the rise of the US dollar versus the Euro.

Roy Lenders, Boosting Alpha

Different ways to invest in Bitcoin compared

In the dark days before Christmas, while contemplating my Bitcoin strategy for 2021, I asked myself the question which options are available. I came up with three different strategies; (1) Buying Bitcoin trackers, (2) Buying trading bots that have Bitcoin as basecoin and (3) Buying USDT based single coin trading bots that trade Bitcoin. All three strategies are contrasted against holding bitcoin on Binance (the yellow line in all charts).

First category: Bitcoin trackers

Bitcoin trackers invest your money in Bitcoin and do not touch it until you decide to sell. They promise to follow the price of Bitcoin 1:1. I purchased 3 trackers:

  • The Big Friendly.bot:
    According to the botcreator, The Big Friendly.bot is the easiest way there is to buy Bitcoin. As soon as you start the bot, it invests in the mother of all crypto currencies: Bitcoin. Once this is done, it does not touch the investment at all.
  • Bitcoin XBTE Bitcoin Tracker EUR XBT Provider (SE0007525332)
    The certificates provide exposure to the performance of the digital currency bitcoin by synthetically tracking performance of the price of bitcoin (BTC/USD) less a fee. (More info: https://coinshares.com/etps/xbt-provider/bitcoin-tracker-euro)
  • VanEck Vectors Bitcoin ETN (DE000A28M8D0):
    This Exchange Traded Note (ETN) gives direct access to the largest and most liquid of cryptocurrencies: bitcoin, 100% backed by bitcoins, stored in cold storage with a regulated custodian with crypto insurance (limited amount coverage) Tradable as an ETF with Deutsche Boerse Xetra. (More info: https://www.vanecketfs.nl/producten/VanEck-Vectors-Bitcoin-ETN/32/overzicht)

The results over the last 2 months are not very surprising.

As expected all three trackers follow the price of Bitcoin very closely. Only disadvantage of the two listed trackers is that you are not able to trade outside the stock market opening hours. This can be a big risk as you can’t protect yourself against price drops after closing of the stock market or during weekends. Cryptocurrency markets are always “on”, with 365/24/7 trading activity. In the event of a crash of the cryptocurrency market on Friday evening, you can only intervene on Monday morning.

The Big Friendly.bot can always be sold as the Bots platform strives to be open and functional 24/7.

Second category: Bitcoin based trading bots

These trading bots have Bitcoin as their base coin and should multiply their value in Bitcoin through trading Bitcoin-pairs. I selected three bots for my comparison.

  • CBS by Altrady:
    A unique algorithm that works by automatically analyzing the market history for each available market, checks current prices against previous support levels and will ensure the bot buys low and sells high.
  • Thunderbird by Dagobert Buck:
    This trading bot focuses on BTC pairs (BNB, ETH, LTC, AION, ALGO, ANKR, ARPA and ATOM) and tries to predict the future of a pair by estimating the USDT components. So BNBBTC is predicted by looking at BNBUSDT and BTCUSDT.
  • DeFi Strategy by Dagobert Buck:
    This trading bot focuses on the top 10 currencies in the world of Decentralized Finance (DeFi). The currencies are LINK, LEND, MKR, SNX, COMP, YFI, ZRX, REN, KNC and BAND. It uses the same strategy as Thunderbird, trying to predict the future of a pair by estimating the USDT components.

Two of the bots have been following the pricetrend of their basecoin Bitcoin, hence have not been trading much, at least not successfully. The third bot has lost value to Bitcoin through its trades. None of the bots have been able to make money through successful trades.

This goes for most of the bots on the Bots platform that do not have a stable coin (USDT) as their basecoin, but a coin like Bitcoin, Ethereum or BNB. When looking at their performance in crypto currency, most show a negative result. The bots are not able to successfully trade, and multiply the amount of basecoin you have invested in. The stellar results in euro as shown in the app are caused by even more stellar results of their basecoin.

Although most (unaware) users are happy with the results of these bots, and Revenyou is proudly using these results in there marketing stratgies, investing in a tracking bot that follows the pricetrend without intervening or investing directly in the coin (not through a bot), would have resulted in a higher gain.

Third category: USDT based single coin trading bots that trade Bitcoin

These trading bots have stable coin USDT as their basecoin and try to multiply their value by trading Bitcoin. I selected two bots for my comparison.

  • Himalaya by Boosting Alpha Netehrlands:
    A moderate and stable bot that only trades in Bitcoin. Through its cautious approach it tries to participate in winning prices and to stop in time at falling prices.
  • Sweet Orange Mia by Team Agga Technologies:
    This trend trading bot trades in Bitcoin and was created to focus only on the greater benefits of the crypto market. The bot will stop trading if the market is stagnant.

These bots will not gain as much as Bitcoin, but are designed to hold on to their profits in declining markets. Two months is too short a period for reviewing or judging these bots, especially in the growing market we have experienced for the past two months. Although the chart shows that the bots were able to hold on to gains when Bitcoin prices fell, and even outgain Bitcoin in certain instances, the overall gains in two months are half of the Bitcoin gains.

Unlike trackers and BTC based bots, these trading bots will exit declining markets themselves and hide in their stable coin to protect gains. Less risk, more ease of mind for the owner.

A fourth strategy which I have started in the beginning of February is trading Bitcoin myself on Binance. Together with a friend I am developing a strategy   to multiply the amount of Bitcoin through trading in BTC pairs (more or less simular to category two described above). Our goal is to earn more bitcoins and to profit from rising Bitcoin prices. If you don’t have the time, knowledge or interest in developing your own trading strategy another option is copy trading, where you can automate your Bitcoin trades using signal providers.

Let me know through the comments if you know of any other strategy, if you have other experiences with the strategies described above, or if you have any other comments or additions.