Here is the monthly overview of all Boosting Alpha trading bots from Jan 31 to March 8. As we all know February has been a period of huge volatility.
The invasion into Ukraine by Russia has shocked the world and this has created shockwaves on the financial markets. In the crypto environment, this had created a gap between the “less risky” crypto assets like BTC and ETH and the more risky crypto assets (most others).
A negative result therefore could be seen in the HODL the Bottle bot series where most bots were active in the market with a HOLD strategy (they are periodic rebalancers) and mostly present in coins other than BTC and ETH. It looks like the month of March 2022 will also be primarily driven by developments in the war in Ukraine.
And again our end-of-month overview of all our trading bots.
The month of May turned out to be a very bad month for the crypto market with the Bitcoin declining with 35% and most other coins declining even more.
The average result of our trading bots was -8,31%. This was definitely the most negative month for our bots since we went live in January 2020 (the Corona crash from March 2020 did not have any impact on the 2 bots that we had live back then).
Among the negative performers were a lot of the HODL trading bots which look at the long-term only and only rebalance once every 2 weeks. If we look at the return in EUR, the EUR decline was higher with -16,51%, which was obviously higher because of the bots which have a BTC basecoin (Dagobert Buck bots + Hirundo).
Interesting to see is that there were also some bots which still had a very positive month of May as well with Roar of the Tiger at the top.
Our financial trading algorithms are built and tested on proper mathematics so we are relatively confident that they perform stable and consistent over longer periods of time. But you can never be 100% sure. Financial markets are inherently unpredictable.
Financial theory considers financial markets to be always efficient (meaning that all available information in the market has been included in the pricing) and indicates future asset pricing as a “random walk” (basically assuming it is unpredictable). Pricing on financial markets is influenced by many different factors which cannot be covered or forecasted in any type of algorithm.
But sometimes you get the feeling that our trading algorithms managed to predict a particular upswing extremely well. In this particular case, two of our bots managed to enter a position in the DOGE coin very early.
Both of these two trading algorithms are now exactly 1,5 month live and already above 400% return.
Both of these bots were expected to return between 150-200% per year based on their backtesting results. But sometimes they are lucky and can benefit from something that is happening in the market very efficiently. In this case they managed to pinpoint exactly the coin where the action was going to happen upfront.