Work in Progress
Dear visitor, we are currently working on a review about CryptoTrader – automated trading system. If you have already any experiences, feel free to share them in the comment section below.
We will try to showcase our testing on a day to day basis. Here our page about Cryptocurrency Trading, it contains general info about trading coins! And now let us start!
Creating an Account
Creating an account was easy as pie. As a simple free acount, you can’t do much more than read ..
To be able to do and test more, we decided to upgrade our account to PRO, which allows us to use one of the offered strategies.
Next step is to choose a strategy.
Choosing a Strategy
By switching to the “Strategy”-Tab, you can see many different strategies, available for free or for rent. Here is how it is seen:
On the right side you can see the cost and a popularity percentage. We decided to rent the Johny Got his Gun strategy because it was somehow popular and not the most expensive one.
So in total our investment is:
$40 (strategy) + 0.05 BTC = $80. Let us see if this pays out. We will invest 1 BTC and see, if we can get the needed 10% trading profits, to not have any losses.
Starting the Trading Bot
On the bottom of the chosen strategy, you can now start it by pressing on RUN! The button looks like this:
After this, you can choose if the bot should be only simulating or trading on your real account!
We decided to try it out LIVE.
Setting up the Bot
You can now choose the desired Market, Instrument and Period. We choose ETH/BTC on the Poloniex Exchange. Then you need to give the API to your trading account, this info can be found on the trading platform, in our case it was POLONIEX.
Pressing RUN, will finish the process and start the Bot. So our (hopefully) money making bot is set up in under 5 minutes!
We did this for DASH, XMR, DOGE and FCT. Also started a simulation on ETC/BTC.
Day 1 and 2
On the Live Trading Tap, you can view the details of your trading bots. Here are the results on the beginning of day 2:
As you can see, it is not easy to understand. For example, there is a mistake at the REAL DOGE Bot, because we didn’t start with 3575073,57143, but we started with 3645,60714. So it says the BOT lost 99,9%, which is not true. It didn’t even trade once with the cryptocurrency DOGE.
But as you can see, the trading algorithm has been only active 2 times. It is on the currency DASH. It has a performance of -6,32%. Which is also, WRONG. Because we didn’t start with 80,62169, but with 0. So he bought at POLONIEX DASH/BTC BUY LIMIT 0.67 at 0.01322. And since the price of DASH is 0.01318827, we don’t know how the -6,32% are calculated.
Summary: Day 1 & 2: Not exactly sure why the bot calculates like he does. Will try to keep this page updated daily with any results. So you can choose on yourself if CryptoTrader is worth it or if you just want to follow the trades we show off their bot.
Hello guys! It is already day 3 of our experiment ‘CryptoTrader’! We figured out why the percentages of the crypto-bot are that messy. It is because all our Bitcoins are on one platform. This means, that if we for example, lose on an XMR trade, we lose a part of our start capital. This changed start capital is considered in all future trade statistics, which is just misleading. This is why we decided to write each of the automated trades and calculate the profits & losses on our own!
You can see our current and all future trading statistics always on the bottom of this post, starting now!
Summary Day 3:
We had one small win and lose over DASH and XMR respectively. Also, the bot managed to buy on the FCT blow up! Which is awesome, since hardly any human can react that fast and also see this earnings opportunity! We hope now, that the bot will close the position before all the earnings are eaten up!
We checked the trading activities and saw that our FCT position got closed. We were thrilled to see the earnings since the position had over 10% + the day before. Well, you can imagine our sad expressions when we saw, that the bot managed to close the position with a LOSS! Here, see for yourself:
The green marking shows the moment of a buy. The red marking shows when the position is closed. So you can see that there was enough time to react and sell the position. This lead us to opening a new category to this cryptotrader review: lessons learned. And in this case, it is to not 100% trust the bot to make everything better than one alone. This can be seen below our trades, on the bottom of this page!
Still, there is something positive to be said about this trade. It could have been a lot worse, as you can see the price now is even lower!
Also, there was a filled ETH buy order. So let us hope this will go in our direction!
Summary day 4: Started the new paragraph about lessons learned, after the bot didn’t take possible profits. Also, a new ETH position has been opened.
Another day, another trade at exactly 00:00 o’clock. We guess that the algorithm is using daily values or averages to do make this call. The CryptoTrader trading bot has closed an ETH position. Sadly, another loss. As we always try to learn from our mistakes, or in this case from the mistakes of the strategy, we came to a new conclusion: If the Bitcoin price is exploding, other cryptocurrencies will probably decline!
Let us explain, why it is always like that! To do this, let us show you the current situation:
Why does it come to this phenomenon, that altcoins fall when Bitcoin rises?
Well, it is simple since all cryptocoins are connected to Bitcoin. This leads to the fact, that if Bitcoin rises, then also the value of any altcoin will rise because all altcoins can be traded for BTC. If the statement above would be wrong, then the price of each altcoin would grow with the increase of bitcoin, and vice verse. This would lead to an extream and unrealistic growth of the altcoins.
What does your knowledge mean?
Let us make a simple example:
Price of BTC: 800 USD
1 ETH = 0.1 BTC
We buy 10 Eth for 1 BTC.
BTC increase of 5% after trading ETH/BTC.
ETH/BTC price declines for 5%.
At first, the value of our investment is: 10*1*800 = 8000 USD.
After the BTC increase: 8000*1.05=8400 USD
After the ETH fall: 8400*0.95 = 7980 USD
This leads to a total decline of 1- 7980/8000 = 0.25%. Which is probably completely different than what one would have expected!
- For each %-decline, you need a higher %-increase.
- You can’t simply calculate your profit/loss by just monitoring the altcoin. You need to take the BTC/USD into consideration.
Day 6, 7, 8, 9, 10
We were not tracking the bot and his automated trades over Christmas. So let us see, what he has done.
Since the 22 of December 2016 has done following trades:
- Sold ETH – closed the position with a loss
- Bought FCT
- Sold XMR – closed position with a loss
- Bought DASH
- Sold FCT – closed the position with a small loss
- Sold DASH – closed the position with a profit
- Bought XMR – currently having a nice profit, position still not closed!
Summary: It seems obvious that this cryptotrader bot does not have ‘short’ trading enabled. Which is of course a pity, since the coin market besides BTC was falling.
Day 11 to 17
Okay, from now we should be keeping this more frequently updated since all the holidays are over! Day 11 to 17 represent the time from the 27th of December to the 2nd of January 2017!
So let us see what has happened besides the Bitcoin price breaking the 1000$ barrier (whoop whoop!):
There was a good XMR buy for about 0.01114500 BTC per XMR on the 26th. On the 27th the XMR price had risen to 0.01310000 BTC. Which was an increase of 15%. Though sadly the cryptotrader-bot had sold it for 0.01141500 BTC just hours before the spike. Also, two more XMR sell orders have been executed. While one of them having a 0.2 BTC profit! There were also two fast ETH-Trades, which ended yielding good 10% of profit. So maybe the curse of 80% losing positions has ended? Let us hope.
Summary: What we like about the bot is, that it cuts the losses pretty fast. Maximum loss being 0.05 BTC. So even if there are more losing positions than winning, the cryptotrader bot has currently made profit! Our conclusion of this is, that the bot doesn’t have a very ‘smart’ closing logic, just a 5% of the starting capital threshold. In our case it was 1 BTC, this is why nearly every position is closed with a 0.05 BTC loss.
Day 18 of our CryptoTrader Test
Day 18 = 3.1.2017. We got a new big winning position, XMR! Also, we have learned how to easily find out our gains/losses, because as stated in day 1 & 2, it wasn’t easy – at least until now!
To show you what exactly we mean, here is how the executed orders have been displayed to us:
And as you can see, there are three issues here:
- Cancelled orders – We need to clean up the data before we can analyze it over Excel.
- Lots and lots of filled orders – Since Thanasis Bot ‘? Johnny Got his Gun (ALL PAIRS)’ is using the so called iceberg model. Which is just splitting all the buy orders in small parts, so we don’t get an unlucky ‘bad’ price. This makes us each time get lots of data which we need to make averages for etc.
- Too much data – And because there is so much data, there is a limit of data to be shown. This means, that if there are, let us say, more than 100 rows, the CryptoTrader-Website is showing only the newest 100 rows. This means, that we need to track the trades over our Email notifications of the trade- This costs even more time than the steps before, because we can’t just copy-paste all at once. We go manually over each mail and copy the buy price and amount…
Solution to those problems was just discovered! We saw that the Poloniex-Exchange offers an awesome analyzing function. So let us showcase this on the latest XMR position:
So as you can see, we just need to state the COIN and the DATE of the trades and we get all the needed information in seconds! In this case Profit/Loss: +0.16857419 BTC (fees included!). Good job to us finding this, to Poloniex for providing this tool and to the bot for making this trade!
Day 19 = 4.1.2017
Just one day after buying FCT (Factom) the Cryptotrader Bot has decided to close down the position. And luckily for us with a 0.11877754 BTC profit! This whole Cryptotrader-review starts to be way too positive, but what shall we say, we didn’t expect this either.
The cryptocurrency trading bot has also opened and closed an XMR and DOGE positions. Also made a perfect buy on ETH. As you can see in the graphic below, the bot is mainly trading on momentum. What the exact parameters are, we have yet to figure out:
So let us hope the bot will continue this great winning streak since Bitcoin fell from 1150USD to 850USD.
Day 23 & 24
Day 23 = 8.1.2017
Over the weekend the cloud bot has not traded that greatly. A total of 0.07 BTC loss. Well, we see this as something that should not stress us too much, since we are still more than 0.2 BTC in plus.
Also, we changed the settings in the bot, so he can trade a maximum of 1 BTC each position. Previously it was set to ALL, so the risk/reward has been reduced. Which is something we recommend everyone doing.
Day 25 = 10.1.2017
Today nothing special, there was just a midnight trade (between the 9nth and the 10nth) at XMR (21:45). We think the algorithm takes the MACD indicator (wiki) to account. MACD, short for moving average convergence/divergence is a momentum trading indicator. The buy signal is made when the MACD line crosses the MACD signal line. In the following Wikipedia picture this would be the blue line going over the red line:
This would be also true for the XMR buy-order on the 8.1.2017 14:00.
Day 26 = 11.1.2017
The XMR position got closed on minus. Though the position was long time in plus. This leads us to our first lessons learned – which we again didn’t follow: To not relay 100% on the cryptotrader bot. Bot has also opened a new FCT position, which we feel was a good call since the price dropped a lot.
Day 27, 28, 29, 30
Day 30 = 15.1.2017
Some positions got traded. Nothing too spectacular to note. Subscription going to an end, what should we do? Test it again? Test a different cryptotrader strategy? Or even a complete different website?
The final days
Last day (31 trading day) = 17.01.2017: We have now come to an end.
PROFIT & LOSS
- Profit in % 1%
Profit based on the automated cryptocurrency trades made by the rented CryptoTrader bot!
Hint: % and real amount are mainly that different, because the bot made smaller positions with the losses at first. And bigger positions with the gains.
Because of the third lesson learned (see below), we know that our calculation is not 100% correct if we base our profit in example USD. Meaning, that our portfolio value is not raising by the percent showed above. This is why we wanted to showcase the increase of BTC to USD since day 1. Though you should not forget, that you can not just add those two numbers to see the USD increase of portfolio value.
- BTC/USD increase (Startprice 792). Calculation based on the current price of 915$ 15.1%
Profit in BTC
CryptoTrader: Lessons Learned
After testing CryptoTrader we have came to following conclusions:
- Don’t trust the bot to do everything 100% correctly! You can close a winning/losing position on your own, don’t need to wait for the bot to do this.
- If a trade is currently looking very good, or very bad – reduce the position! You can take small profits/losses without closing the whole position. This can reduce the risk to lose the profit or in the other case, to lose even more.
- If the price of BTC rises, then most altcoins will fall. Need to take this into consideration when calculation profits and loss, and also when deciding to buy/sell an altcoin.
- Bot is closing each position when the loss is about 5% of the starting capital (in our case 1 BTC). So maybe stop the bot if you want to close this manually.
CryptoTrader Review: Summary
So our 1-month rent of Thanasis’ Bot? Johnny Got his Gun (ALL PAIRS) has expired! So let us just start by saying it was a lot of fun mixed with an emotional rollercoaster and a lot of lessons learned!
End of the day, we made a trading profit of 0.22324315 BTC. If we subtract the cost of the strategy 40 USD and the fee to use the cryptotrader-platform of 0.009 BTC we come to the final result of about 0.18 BTC PROFIT! This is a portfolio increase of about 10% – since we actually had some coins lent on the exchange (which we transferred to our trading account).
Are we happy with our CryptoTrader Test Results?
This is something we totally didn’t expect. This is why we are currently thinking which strategy and/or platform to test out next! If you want to see something in particular, just suggest it in the comment section below!
Though one should not forget, that the 10% we – or better said the bot – achieved are not guaranteed to be achieved the next month.
What will we do the in our next cryptocurrency bot trading text better?
This is a legit question. We made a lot of mistakes and miscalculations – as you probably know if you read all the article or at least our “lessons learned”. For sure we could have limited our losses or increased our gains if we had manually closed the trading positions. This is something we will try to do in our next test!
CryptoTrader Strategies that we have also reviewed and tested
We are going to add here each and every cryptotrader strategy that we have tested: