Welcome to my 2nd blogpost about my experience with the GSMG automated trading bot. This post is in no way sponsered by the GSMG team, which can be concluded from the cold hard truth in this blog.
This post will be about a long term review of the bearmarket GSMG trading. Which starts with a small summary of how I do Fundamental analysis of coins. After I had followed GSMG during 4 months of bullmarket I decided to start in January 2018, at the peak of most Alts..
How did I chose my markets?
Since I am not a trader, GSMG is convenient to do my buys and sells. Yet, the machine will not chose it’s own markets. So how have I come to decide upon certain markets.
• Main aspects are stuff like; team (skills & experience), community involvement, feasibility of goals (roadmap), partners, network and accomplishments.
• On what scale might the project disrupt currently used technologies?
• Are there any interesting side aspects incorporated in the projects plan to make it suitable for more usecases?
• Will they build a product or 'mainnet' and then the coin will be dead or is there strong long term perspective?
• Is there open source development or collaboration with trusted entities?
• What is the consensus algorithm?
If there is PoW, be sure to research the diversity of nodes. And involvement from miners in development decisions. If it's pos or any form of it, be sure to research the actual rate of inflation and current wealth diversity. Also make sure the block producers are being honest and committed to the project.
• Is there actual need for the token/coin?
Something like the xrp token for instance, sure it gets shilled and sure some tech gets used in experiments by banks, but the actual xrp token is useless. (In my honest opinion - no hate, wanna start constructive discussion if possible)
-in hindsight btc-xrp would've been a pretty nice market..
What are my bearmarket results?
I started with aggression settings above 100%, and minimal profit settings of +- 4%. Due to much accumulation I had decided to add BTC 3 more times, in March, July and August, with an end total of 0.93 BTC invested. At each extra deposit I wisely began to lower the aggression to create a more sustainable balance in the available base funds per market. Unfortunately TabTrader order history on Bittrex is limited. I added some screens of downtrend & correction of my markets.
Most of the information about the results will have to be gained by the excel screenshot.
What made me start with these settings; it was bull market when I started. The hype was still fully active, markets were volatile and I was quite naiive and very optimistic. These screens can make you understand why I kept my aggressive settings (look at the rapid buying!);
What have I learned?
That automated trading in bear market is not profitable with aggressive settings. Yet, in comparison with my own hodling bags, which are down +- 70% in btc value, it has managed to prevent lots of losses. I started with 10% of my portfolio traded by GSMG, this has become about 3/4th at this moment. A lot of losses in base funds have been regained in the last +- 8 weeks. This is about 0.13 BTC of realized profits, out of my 0.31 all time total. I am still closely following the coins I have accumulated and feel comfortable for the upcoming next months.
These are the stats from the GSMG dashboard, which are currently under improvement since the realized profit can be a little misleading in bearmarket trading.
Please leave any remarks, feedback, tips or tricks. I am planning on making new posts, also with screenshots of excel analysis and from Tabtrader.