So all of you, followers of my blog, know that I started this experiment somewhere around 5 months ago with 0.4 BTC invested in the trading platform called Bitsgap.
Fast forward to the current times, the balance is sitting at 0.466 BTC which is pretty much similar to what I had 3 weeks ago when I posted the last blog post. It literally got stuck in there.
So now the question you might all be asking is how did it get stuck there in the first place? Well, there are a few things that come to mind to explain the stagnation of the trading bots. The first one was that the bots have left the trading corridors, which in turn was executing a small amount of orders.
So I looked at my Binance trading volume, but for the past month, it actually had more than 9 BTC. This means that there were a lot of trades performed by the bots.
Why Is There no Profit?
This is a very good question. With the amount of activity that my Binance account showed me, there should be at least a visible amount of profit. So I looked at the list of all my current trading bots.
The Finer Details
So what are we looking at? From what I see on this screen, I can think of three distinct scenarios that are currently happening at the bots:
- The first one is that the NANO/BTC pair has left the trading corridor and is currently on the upper limit.
This means that it has already sold all of the NANO coins and is currently waiting for the price to drop so that it can buy again. I will readjust the NANO/BTC pair today as it was inactive for almost 1 month. I was hoping that the price goes back inside the corridor but it seems that it is not happening any time soon.
- The second scenario is that there are currently 5 pairs that are perfectly working fine.
They are ONT, XRP, LSK, STORJ, and EOS. These are the pairs that are working behind the scenes and tries to offset the difference of the NANO pair being inactive. These bots have been making me profits.
- The last scenario is what will make and break my profit margin in the future.
These nine pairs (LINK, NEO, XMR, POWR, GNT, USDT, ZRX, WAVES and XLM) have crossed the lower limit. What it means is that these bots have coins pending for sale and are just waiting for the price to come up to sell when it recovers. Just like I said, this third scenario will most likely break my profit margin when the prices recover.
The NANO/BTC Scenario
Since this is the bot that has stagnated for the most amount of time, I will be adjusting it so that it starts working for me again. I have already canceled the current NANO bot and I will be launching it again with a new grid. I will be investing 0.031 BTC on it to go towards trading.
I might choose another pair instead of this one as I currently have no NANO coins since they were all sold by the bot. However, I still want to use this pair though because this pair is pretty stable with no massive pump and dumps. Basically, what I am saying is that NANO/BTC is perfect for the automated grid strategy.
The Limit Breakers
Now, this pertains to the third scenario. The 9 bots that have crossed towards the lower limits. I have been in a similar situation like this before where the BTC price was pretty unstable like a few months ago. This is happening again and bot trading does not really farewell with scenarios like these where the prices are volatile.
What I will do is I will wait at least a week so that the market can stabilize before doing anything with them. The closest one to that is the XMR pair since Monero is also a pretty stable coin and the price is almost there.
Some coins though might need more time. The worst-case scenario is that they will never recover at all. I am still crossing my fingers though and give them a chance to recover. The worst example of this on my current list is the LINK/BTC pair.
Bitcoin has been up and down in price during the past few weeks and hopefully, it recovers this week as it looks it is somewhat stabilizing. If it does, I believe that the next blog post will be most likely positive and who knows, it might achieve a new profit record!