“How crash-proof are Bots?
How will RevenYOU BOTS behave in a Bear-market?”
On the social media this was a frequently asked question. The problem is that it needs time to draw such conclusions. Now curiously, during exactly the first anniversary week of BOTS, we can now begin answer this question.
Why? Because during the first year of existence of the BOTS-Platform all went relatively smoothly, bullish or stable. Actually often with extreme yields.
On the 19 May 2021 there was a crash of Bitcoin and subsequently the whole crypto market.
How did the Bots survive, perform and recover?
Especially investors and traders who entered the market only recently, say this year, were shocked to see the volatility of Bitcoin (BTC) and many altcoins. Value and prices crashed by 50% or even more. This was a good opportunity to see how Bots behave specifically at the Creator level. Was the damage limited or not, and how went performance recovery. This of course is valuable information for investors, new and experienced.
How crash-proof, that is safe or secure are Bots produced by the diverse Bot Creators. This is where the Poll is all about. Some Bots have performed very well some even extremely well. However this is the time to prove if they are crash-proof or not at all. And how important is that to you and your cryptocurrency portfolio.
Of the 28 Bot Creators the top 5 have almost all the votes. The remaining developers or producers have only one or no votes.
The number 1 is Agga Team Bots (AB), by far the best reputation with regard being crash-proof.
The number 2 and 3 being one of the oldest producers is Boosting Alpha (BA) and the BA trademark The Noogleman (TN).
The number 4 is Atmos (AM) and is one of the new Creators with currently 6 Bots. Three dated before the crash and 3 after the crash date.
Altrady (AT), also an “older” producers, with many non-USDT basecoin Bots.
Depending on your portfolio involvement, passive and even defensive, average or active and even aggressive, the Creator choice is important. Apart of the Risk Classification (RC) per Bot, this poll may be useful for you and other investors, in combination with the Bots Popularity Polls.
The easiest way is to go to the bots.io site and follow “Start in just one minute” path. That will work. But not for all investors. Indeed, you now are not just a customer, but an investor.
Most visitors to this Bots Institute (BI)-website realize that. Because it is about money, your money. If you are looking for more information and advice the BI-site is there for you!
For just €5, you follow the Know Your Customer (KYC) procedure, and buy (=start) your first, one or more BOTS.
When investing with the BOTS-App, you can get a €10 bonus. 1Invest €5, or more, and get €10 free with this referral-code:
When you sign up and fund a bot for 4 weeks, you get a €10 bonus with the above referral-code.Download the App.
Then wait and see what happens, Tip#1. Not hours or days but for instance once a week or every few weeks (Tip#2). If you have an urge to own one or the bots asap then the advice would be: buy bots with USDT as the basecoin and two, do not buy a Dumbbot (Class A).
For info about cryptocurrency, trading or investments just use your favorite search-site.
The nucleus of this site is located under menu “Tips” and its sub-menu’s. This in combination with the Blog-articles, Posts, will give you all information to become a successful trading bot user, investor.
How to begin better prepared?
The fact that you found this post or the BI-site is you advantage (About and FootNote 1). Rather then replicating or duplicating info we will highlight the most relevant aspects in this post.
✅ The Purchase Checklist should be your starting point. Under the assumption that your purpose is to make money and avoid losses when possible. Than execute the Checklist in de listed order as to create your portfolio.
Then after a half or a full year, perform Portfolio rebalancing to determine, and if required execute, re-balancing your portfolio.
How to select your BOTS?
There is a quadrant of pages that will help you with the BOTS-selection. Two pages contain a table that was derived from BOTS-App data. The other two pages contain information delivered by our users end data about BOT Creators that we could find from the Internet. In some cases info was supplied by BOTS-Creators.
The table on this page lists the Bots Creators and their BOTS-Names, the type of bot, typified/classified and additional remarks, more or less important, can be included. The latter may be updated over time.
Selection & Spreading
Although there are more aspects to take into inconsideration, Selection & Spreading shows the most important two:
The Base Coin and the Crypto Coin or Coins, wherein the BOT trades. Make sure to understand the importance of the Base Coin.
Although the BOTS have a Risk Classification (RC), it is dynamic and can change over time.
From our experience: selects the most applicable trading-strategies for your goal and targets with the best performance.
The Bot Creators-page lists all Creators and when available additional information and a BOT-Creator website-link.
Tips and Terms
For info about cryptocurrency, trading or investments just use your favorite search-site and you will find reading material for a live time. However BOTS specific info is the nucleus of this site and is located under menu “Tips” and its sub-menu’s.
The Tips-page, actually Tips&Terms-page, includes information that will be essential to enable you to make the right choices during the selection.
Mind you that there is a wealth of relevant information onder the Footnotes 2Example, in particular on the pages mentioned.
BI Excel Spreadsheet
For most users the BOTS-App will satisfy the requirement of the smartphone user-interface. It shows the current total value, and the invested value and yield per BOT.
If you are an advanced user this information may not be sufficiënt. If you are one of those peoples, you want to get more insight in the trends, yield in relation to the marked and the coins of your BOTS. This spreadsheet will offer a good starting point to manually monitor your ‘annualized return’ of your entire BOTS-portfolio.
The combination with the Blog-articles, Posts, and Tips-page will give you all information to become a successful trading-bot user, a investor.
The Index of all Blog-articles is a quick entry into the posts.
Be aware: In this virtual financial world nothing is for sure.
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.
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.
To answer the question I have been comparing three portfolios. Two portfolios on the Binance cryptocurrency platform in which I bought and held on to a selection of crypto coins (Top 10 cryptocurrency coins and cryptocurrency coins 11-20) and one portfolio with my selection of 30+ crypto trading bots on the Revenyou Bots platform.
After six months of comparing the performances of three portfolios, here are the final results.
The results of the three portfolio’s after six months as per mid February 2021 (5 months results as per mid January 2021):
Incredible gains in the last month, where both Binance holding portfolios have outperformed the crypto trading bot portfolio. The difference in ROI (return on investment) of the Binance Top 10 portfolio as compared to the crypto trading bot portfolio is shown in the following chart.
A positive score on the chart means the “Revenyou portfolio” has a higher ROI than the “Binance portfolio”. For example if the “Revenyou portfolio” has a return of 20% and the “Binance Top 10 portfolio” has a return of 50% the result on the chart will be 20 – 50 = -30%
The same chart showing the difference in ROI of the “Binance Top 20 portfolio” (Binance Top 10 + Binance Top 11-20) as compared to the “crypto trading bot portfolio”.
The performance of the Binance Top coins holding portfolios in the last 30 days has been stellar, resulting in an outperformance of the Top 10 coins of 149,63% and an outperformance of the Top 20 coins of 81,67% compared to the Revenyou crypto trading bots portfolio.
The above data suggests that holding a selection of larger volume coins is wiser than buying crypto trading bots. But as noted last month, the risk due to the volatility of holding on to the individual coins is much higher than owning crypto trading bots.
Crypto trading bots work like asset managers, buying and selling crypto coins for you depending on market conditions and signals. Managing your assets reduces risk meaning both gains and losses will be smoothed out. Volatility (risk) is not what most investors are looking for. A controlled profit with the least possible risk is preferable. If the cryptocurrency market undergoes a correction, the fall of prices will be better controlled by the trading bots.
How do we take risk or volatility out of the equation and get a fairer comparison?
The answer is Sharpe ratio. Next italic explanation is copied from last months post and can be skipped / fast forwarded if you know all about Sharpe ratio by now.
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.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 ratios.
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
To calculate the Sharpe ratio we need a risk-free rate of return. This is the return on an investment with zero risk, meaning it’s the return investors could expect for taking no risk. The yield for a U.S. Treasury bond, for example, could be used as the risk-free rate. In my calculations I used T-bonds or Treasury bonds. Treasury bonds are fixed-rate U.S. government debt securities with a maturity range between 10 and 30 years. I used the 10 year bonds.
The following chart shows the development of the “10 Year US Treasury Yield” over the past 6 months. The yield has almost doubled in half a year, increasing from 0,675% mid August 2020 to 1,301% mid February 2021
The following chart represents the Sharpe ratios of the three portfolios, Crypto trading bots (blue line), Top10 coins (orange line) and Top20 coins (yellow line).
The Sharpe ratio results (last months results):
Top10 coins portfolio: 4,54 (3,20)
Crypto trading bots portfolio: 4,27 (3,52)
Top20 coins portfolio: 4,21 (3,16)
The ROI (return on investment) of all three portfolios can be classified as more than exceptional, scoring well above 3. After a month with ‘out of the ordinary’ crypto results the portfolio with the highest Sharpe ratio is the Top 10 coins holding portfolio.
Final conclusion after six months of comparing:
Based on the proposition “A higher Sharpe metric is always better than a lower one because a higher ratio indicates that the portfolio is making better investment decisions” the Top 10 coins holding portfolio wins.
If you like taking risk, you don’t mind the volatility, and you believe in the future of crypto currency, holding the larger volume coins (Top10) would have brought you the highest return in the past six months. Even corrected for risk/volatility this would have been the best choice. The more cautious investor probably sleeps better with a broad selection of crypto trading bots that will manage your assets with less risk. In a declining market or market moving sideways (like the first three months of my comparison) the bots will absorb eventual blows better.
Final note: This comparison doesn’t involve trading by yourself. All three portfolios are buy and hold portfolios for “lazy” investors. The adage has been: Let the coins and the bots work for you, and do not intervene.
“Trading is rapidly gaining in popularity among young people. Since the interest rate on savings has been close to 0%, young people have started to look for other ways to build up capital. So it should come as no surprise that the development of trading apps such as BOTS appeals to this age group. And for us as a platform, that entails a responsibility.”