Hi @Tourmaline, basically the strategy is working on indicators for "overbought/oversold". If the algorithm finds a coin (out of the ones you selected prior), it buys if the coin dropped sharply b/c it is highly probable that it rises again shortly afterwards.
The users job is to find and monitor the coin portfolio so you only trade with coins that have an overall positive trend. every 2 weeks i do a review of the charts of my 50 coins and do a cleanup. Kick out dropping ones and taking in new candidates.
Let me know if you want to know more, PM me if you like.
imo bots can make you way less than research & due diligence.Crypto Currencies are high volatile, high risk investments.
You should only work with money that you can spare.
Do not work with lended money.
This is not a get-rich-quick-model - Its based on compound interest.
Start slow with small amounts, get experience, then take it from there. Be patient.
Main goal: a (relatively) stable income which grows steadily.
I am writing the following text from my memory, so its not a "live journal".
Beginning of September 2020:
I searched for automated income machines on youtube, surfed around to finance sector and landed at so called "bots".
My deeper further research brought my to the corner of cryptocurrencies where i spend some days to get a grip on crypto basics.
Mid September 2020:
I found some youtube videos that talked about crypto bots that should earn some money "passive income style".
"Yeah sure" you think now, same as i did. To be sceptic is not a bad thing.
Always check all facts yourself, never just believe someone.
So now its a setup where i have 1/3rd - 1/2 of my portfolio in open positions, no stop-loss but trailing-stop-loss.
This means I can never loose all my money - of course if the whole crypto market crashes, all open positions would loose value.
Back to business...
What I decided is to try out a solution called "cryptohopper". This is just one of many bot solutions in the crypto sector.
I followed some introduction videos that showed me exactly how to setup that bot.
What i had to learn was:
Fast forward to today:
- Basic crypto understanding (from many videos)
- cryptohopper documentation (youtube and own education material on their website)
- functions of crypto exchanges (basics again with some videos)
- how to connect the bot to my chosen exchange
After some finetuning and learning - my ROI of the last 3 month is in the 15-18% range per month (proven in bull markets, as i have only experience from Sep 20 til today).
After inclusion of a buffer for bad times, where i won't have any wins for 3 months, i plan with 10% in average over the year.
Why i am here:
I am willing to give everyone who is interested further information in this area.
I can give advice on the following side topics:
As a thank you, i would ask you to use my affiliate links while registering at the exchange and the cryptohopper which bring some 10% savings to both of us. This is optional of course.
- General "how to setup" of the crypto exchange "binance"
- General "how to setup" of the platform "cryptohopper"
- Importance of security and anonymity in crypto
- trading strategies and tactics
- trading mindset
- copy my setup to receive similar outcomes
I will do my best to answer all questions, what do you want to know?
Sources that i can recommend:
Coin Bureau (basics on crypto)
Aureum Victoria (german) ( mainly focused on cryptohopper)
99bitcoins (basics on crypto)
Cryptohopper (getting started)
Nov 2020: 3351 USD (Portfolio: 15K USD)
Dec 2020: 3293 USD (Portfolio: 22K USD)
Jan 2021: 10554 USD (Portfolio: 50K USD)
Good point. Thanks for your comment.imo bots can make you way less than research & due diligence.
You do have the benefit of automation but in a bear market...I'm not overly confident of what ones results might be.
Hi all, here my update for the month of May 2021.
Updated Results (rounded):
Nov 2020: 22 %
Dec 2020: 15%
Jan 2021: 21%
Feb 2021: 8%
Mar 2021: 14%
April 2021: 9%
May 2021: 9%
On May-12th, the crypto-sphere has experienced a major dip, which continued until today.
BTC began May with ~57KUSD and ended with ~35KUSD.
The drama began on May13th with Elon Musk talking about bad energy consumption of Bitcoin. The market reacted fast and BTC dipped from slightly above 54K to 52K in a blink of an eye.
This started the trend for the rest of the month.
Media and many youtubers where spreading FUD, which was no surprise.
The best resources for serious Cryptoinvestors for me are Dan from Digital asset news and George from CryptosRus.
But lets get to the charts:
View attachment 38208
The overall Market (excl. BTC):
View attachment 38209
The bot generated 8.6% of growth in May. Overall very low number of sells due to the ongoing bearish market conditions.
View attachment 38210
The Bot is working well in these harsh conditions, still generating wins.
3rd time this year, 10% not reached, therefore status "underperformed" for May.
This was of course a cold shower but i am a strong believer in Cryptos. The whales are putting more pressure on the market to scare out retail investors. All to buy BTC and Alts at major rebates.
Coin Bureau has explained this in detail, a very interesting video if you want to know more about the backgrounds.
Other than the bot, I keep on HODLing BTC, ETH, ADA, VET, and smaller coins and DCA'd even more today.
(DCA=Dollar cost averaging)
This is a marathon and not a sprint, so i am optimistic for the future of cryptos in the mid-/longterm.
Let me know if you have any questions, i will reply to all of them.
Absolutely right... I was not sure about the performance in these times but now i am gaining confidence.Well now the people who said "as soon as the market goes down you'll be broke!" and "it's easy to make money in a bull market!" can finally reevaluate their opinions. You have robots making 9% per month on your money, while banks are parking their money in Treasury bills that literally, honest to goodness, pay 0% interest.
Hi Frinys,I must say, I did not expect this thread to live for long. I'm impressed that you've kept updating the thread monthly. I'm also impressed by the performance of your bot.
It still sounds like a "too good to be true" scenario. 9% profit the same month bitcoin decreased by ≈40%. If you keep this profit rate you'll be filthy rich in no time.
This bot is obviously working really well. So, here is my question. What do you think is the reason such bots aren't used by more people?
Also, how do you handle the taxes? Do the bot set aside a % of the profit which it keeps as USDT, or do you set aside fiat manually according to the amount of tax you have to pay?
Update after my Trip to Malta
Malta is a nice coutry, relaxed and friendly people with awesome climate conditions. Thats it.
I can't imagine to relocate, i want to stay in germany.
find out, where to start a company for my cryptos. This way i can optimize my taxes hopefully. I will read and contact some experts to find the best option. I know already that germany is not making this too easy for me. Just live as an comany owner in germany and pay taxes in another country? Lets see what tricks the experts have to offer. If this forum knows how to do that, please feel free to contact me or respond to this threat.
Thanks, Cypress and Malta and Estonia have similar offers.You can register a company in Bulgaria and pay "only":
Tax on Dividends – 5%
Tax on Corporate & Personal Income – 10% flat rate.
Of course this would make sense if the turnover justifies the additional expenses (like the registration and local accounting).
Here you can get more information (from one of the many consulting companies):
How to set up a company in Bulgaria, Steps to register a company in Bulgaria, Register Bulgarian EOOD company, Register Bulgaria EOOD company.www.bulgariancompanies.com
Join Fastlane Insiders.