How I increased BTC by 270% since 2019 using cryptobot
In 2019 when Bitcoin was $3,000 I developed the crypto bot and increased the amount of BTC from 0.7 to 2.5.
This article is a brief historical summary of how I came to algorithmic cryptocurrency trading, how I got frustrated and believed in crypto once again, how I developed a bot and increased the amount of crypto on my account by 3 times.
Bitcoin in 2018: $20,000 -> $3,000
At the turn of 2017–2018, I was paid for my work in crypto — BTC, and ETH. I sold some of it “to live on” and I kept some of it for the future —cryptocurrency quotes were growing at a record pace.
In March 2018, BTC was worth about $10,000, and it looked like it was going to keep rising after a 50% correction. I kept trying to leave more and more in my wallet and I hoped that it would be a breakthrough again. So strong was the euphoria on the market, everyone believed in crypto, and it seemed like the world was on the verge of a big change in the crypto-fiat money system. However, by mid-2018 Bitcoin had fallen to $6,000, dragging away all the hope and market euphoria.
At first, I switched to altcoins and tokens, hoping to make x2 in positions and get to the same level in $. But they all turned out to be lottery tickets — sometimes you win but more by luck than by trading skill.
By the end of 2018, Bitcoin was worth just over $3,000. Completely frustrated with cryptocurrencies and having regretted even messing with them, I abandoned all my attempts to recoup and became a HODL unwillingly. I divided all the funds between Bitcoin and ether in the 60/40 proportion.
Cryptocurrency futures
Around the same time, I learned about Bitmex and Deribit exchange — they allowed trading futures contracts on crypto, having BTC or ETH as collateral. In short, futures contracts are derivatives that allow you to trade an underlying asset (in our case, cryptocurrency) with delivery in the future. For example, I buy bitcoin futures with delivery in December 2021 instead of buying them right now. Why?
The main feature of trading at Bitmex and Deribit (and later Binance) is the ability to buy or sell Bitcoin futures with BTC in collateral, including leverage. This will allow you to earn extra BTC if you trade successfully. Bingo!
If Bitcoin has fallen by 3 times, you just need to make 3 times more Bitcoins on your account! How to do that?
It is difficult to guess the price movement of any asset, not to mention cryptocurrency, where the fundamental value simply cannot be calculated. Stocks have at least some multipliers, profits, revenues, etc., but how do you evaluate Bitcoin? Since I worked in the investment business with stocks, including algorithmic trading, I applied my experience here and developed an algorithm for a crypto trending bot and tested it on historical data.
270% for 2019–2020
In early 2019, I was joined by a software developer who undertook to implement the algorithm and connect it to exchanges. Literally in a month, the first version of the bot was ready, and we launched it at our accounts. We called the bot Algonaut. “Algonaut” is a portmanteau word derived from Algorithmic trading and Argonaut (the ancient Greek hero who was on a quest to find the Golden Fleece).
Over the course of 2019, we have debugged the bot to make sure there are no errors and automated it so that human involvement would be minimal. Regardless of a lot of bugs, we earned about 140% in 2019 and 130% in 2020, which was pretty much what we expected based on the historical backtest. The funny thing is that in March 2020 Bitcoin was falling to its lows again, but it didn’t bother me anymore — the bot was earning on the fall as well and increasing the amount of BTC and ETH on the account. Since the beginning of 2021, the bot earned +18% on BTC and +19% on ETH.
AlgonautBot — cryptobot for everyone in 2021
In 2021 we launched algonautbot.com, where we give everyone an opportunity to connect a bot for trading in their own account at Binance or Deribit. The capacity of this bot is very big — you can trade with even 100 bitcoins without affecting the results for us. So, we decided to give access to this bot to everyone who wants to earn on crypto using algorithmic trading as we do. At the moment we are testing our service and will be glad to receive feedback!
Visit our website to learn more info and try a bot for free: algonautbot.com
