So it has been 2 months since I started the Bitsgap trading bot. It has been a long journey. Originally, I just planned to use the tool for a month, but things happened and I went on the red. So I cannot let it end on a sour note, so I decided to give it another try and hope I can recuperate.
If you guys remember I have started this experiment with 0.4 BTC invested, and my last reported balance was 0.387 BTC. However, good news: the bot is making me profit again! So if you want to see how I managed to recover, read below.
Trading volume and coins
During the past 30 days, my trading volume was 4.79 BTC. It is actually not that much compared to the number of orders that the bot was previously doing. The reason for this was because some pairs have broken the lower grid limit and were holding the altcoins, waiting for the right opportunity to sell to recuperate the loss. So this created no trading activity, volume nor profit.
If you look at the Binance side, this is how my portfolio looks like. The biggest part of my current amount of coins is divided between the pending orders, which could not ever be executed, as the current price is way below the trading corridor.
Biggest profit maker
Now, the money maker for me is the GNT/BTC pair. So far, it has been the biggest pair that contributed to the generation of the profit, which currently sits over 50%. I will definitely keep this pair running as it is, as well as the other pairs that are showing a positive trend. They are running smoothly and there is no reason to alter them.
Adjusting negative bots
Now for the bots that have incurred losses: it is time for me to make some major adjustments to them. I will be closing them down now, and use the altcoins that the bots bought to place new grid corridors.
In other words, I will be recreating the bots using the same coins but will be setting them up with new parameters. Let’s take the ONT/BTC pair as an example to explain what I will be doing.
New grid settings
First things first, I will cancel the bot. That way, all the sell orders it has currently pending will be canceled and the ONT coins will return to my balance.
Now I will be using these coins to place a new grid and put them to work. For the new grid corridor, I will be using the previous bot’s lower limit as my new upper limit and set the current ONT price as the new lower limit.
Now, I need to calculate the size of the investment per grid. I currently have 274 ONT coins and I need to divide them between 20 grids. So the math for the investment will be 274/20 = 13.7. The investment amount for each grid will be 13.7 ONT.
Now, everything is ready to be deployed. I already have selected the corridor, the number of grids and the investment amount per grid. When I launch the Bitsgap bot with the new settings, it will be using all of my ONT coins in my balance and place the sell orders.
The bot will not be buying anything right now as my lower limit is set at the current price. I don’t want it to buy any new altcoins, as I am not interested to end up holding more coins that I actually don’t need. First of all, the bot will try to sell out some of my ONT coins and only then place new Buy orders accordingly inside the new grid.
I have done the same adjustments to all the other pairs that ended in the negative.
Lessons learned
This is the second month of me using the Bitsgap bot. Although I made some profit, it was not the profit I was expecting. But on the bright side, I have gained some new experience and now I will be monitoring the bots and doing everything in a smart way.
I will not let any altcoins bought by the bot just passing around the portfolio without making me any profit. If ever some of the bots break the lower grid level, I will give it a couple of days for the recovery and replace the limits for the said bot so that it can start generating profit again. After all, that is the whole point why I started this endeavor, to make a profit.
I do hope this coming week will become the most successful for me because I now understand more about how automated trading and market work. I will be applying my newly learned mechanics and strategies to be able to generate profit further.
The most important lesson that I have gathered though is that crypto trading bots are not something that will be bringing you money while you are doing nothing. If you have been following this blog for the past month, I had the impression that I can just let the algorithm run by itself and it will generate me profit. I was wrong.
Bots like these are actually very helpful tools that can help you a lot in trading, but they need constant monitoring and control. I have learned my lesson and I will be applying my experience for future adjustments.
Don’t forget to visit this blog again next week for another Bitsgap trading bot report!