A while ago I wrote this article about the bot and how to install it, but I still get a lot of questions. I decided to answer most of the interesting questions with this article are:
- Have I earned more (net profit) on my deposit than I have from holing Bitcoin in the same time?
- How can I keep the bot working in a sideways/downward market?
- What are the advantages of a retained strategy versus a more aggressive strategy?
- Can I show some statistics from a bad month like July?
- What is the difference between the UpDown and BBT strategy?
- Is it better to use Bitvavo or Binance?
The Satoshi Trading Bot uses an intelligent algorithm that automates trading for you. The bot goes to work for you to grow your crypto portfolio purely based on its fundamental analysis of the market. The MACD indicator, among others, is used for this purpose. For a substantive explanation of how the bot works and settings, I refer you to this article. For help or other questions I refer to Telegram.
1. Have I earned more (net profit) on my deposit than I have from hodling Bitcoin in the same time?
In a short answer: Yes almost 13%.
Of course, I am going to back up this answer with numbers. Since January I have earned a gross total of 10,800 euros with the bot. Minus platform costs this comes to 8,640 euros and about 1000 euros trading costs of the exchange off (0.02% based on trading volume) it comes to 7,640 euros net.
The deposit that I put in the bot is divided into phases namely January I started with 2,000 euros. In March I increased my deposit to 4,500 euros. In April I added another 5,500 euros and increased to 10,000 euros. In May I added my last 5,000 euros and increased my total deposit to 15,000 euros. To be able to deposit this amount I sold some of my hodl portfolio which I already had for a fairly long time. The total profit on my deposit is just over 50% and this was realized mainly in the period up to the end of May. Because the bot also bought new trades in small coins that are currently up to 60% underwater my total amount is now 15,900 euros which puts my current net profit at 6% (at the time of writing).
If I had bought and held Bitcoin at the same buying times my loss now would have been about 6.7%.
Of course BTC is going to rise and this will look very different at the end of the year, but then my bot will have additional profits. A difference of 12.7% from buying and holding Bitcoin in the same period.
- Jan 1, 2021 for 2,000 buy at 25,000 price is 0.08 BTC.
- Mar 1, 2021 buy for 2,500 euros at 42,300 exchange rate is 0.06 BTC.
- Apr 1, 2021 buy for 5,500 euros at 51,000 rate is 0.11 BTC.
- May 1, 2021 buy for 5,000 euros at 49,300 price is 0.10 BTC.
- This gives a total of 0.35 BTC with the price of 40,000 euros this has a value of 14,000 euros (at the time of writing).
Note: I always remain a proponent of holing cryptocurrency in a portfolio over the long term and the bot will therefore have a feature where profits can be automatically saved in the relevant cryptocurrency so that the portfolio builds up automatically. This feature can be set per trader and determine whether euros or cryptos are earned.
2. How can I keep the bot working in a sideways/downward market?
This can be done by setting so-called maximum purchase amounts. In ‘settings’ -> ‘traders’ there is an option to adjust the ‘maximum buy amount’. For example, in June the Bitcoin market often dropped towards 28k euros and then back towards 30k. For the bot, these are perfect conditions. If you then set the maximum purchase amount of Bitcoin to 28k and the minimum profit percentage for example to 3% in this case then the rest is automatic.
This can also be used in a rising market of course, but it is a retained strategy which limits the bot’s actions somewhat. In question 4 I will discuss statistics of the fully automatic strategy in July. Translated with www.DeepL.com/Translator (free version)
3. What are the advantages of a retained strategy versus a more aggressive strategy.
A retained strategy makes the bot less likely to submerge and then it pretty much keeps spinning. However, the disadvantage is that you miss trades compared to the fully automatic and more aggressive strategy. If you know how to estimate the market well, you can, however, earn a lot on a single trade with a retained strategy.
4. Can I show some statistics of a bad month like July.
This is a fully automatic strategy that still managed to achieve a return of 6.23% in 14 days. In this example, we chose the UpDown strategy and all coins on Binance.
5. What is the difference between the UpDown and BBT strategies?
BBT Strategy: only buys when the price trend turns from falling to rising, never during a rise or fall. BBT sells only at the moment when the price trend turns from rising to falling, provided the entered rate of return is met.
UpDown Strategy: buys continuously (irrespective of the price trend) when the price drops and sells as soon as the return percentage is met. This strategy looks at the 1 minute candle.
6. Is it better to use Binance or Bitvavo?
Bitvavo is a good Dutch exchange that is easy to operate. Looking at the trading costs, Binance is initially a bit cheaper, but the trading volume increases very fast when you start trading and then Bitvavo becomes more and more interesting. That’s why I actually always recommend Bitvavo to people. Especially since Binance currently does not have SEPA and iDEAL capabilities to deposit money on the exchange where Bitvavo does. In addition, Bitvavo has a much easier app. Instructions for connecting the exchange with videos can be found on this website.
That’s it for today!
If there are any other interesting questions, please let me know and I’ll try to answer them in the next article or on Telegram.