The Perfect Bot at the Perfect Time

So, the last few weeks have stunk — Big Time!  

Getting past the initial blow this downturn created, I have no real worries. As a HODLer, I’m in it for the long haul and can’t be detoured that easily.  I won’t get into the recent LUNA / UST issues, as my opinion is just that, an opinion.  However, it really sucked to own either of those assets these past few days, and if anyone is thinking about buying either one now— I don’t recommend it.

As UST lost its peg to the US Dollar the whole market suffered a torrential downturn.  Like most other HODLers, I looked the other way because, honestly, I’ve survived worse.  Instead, I focused on my bot army as many dropped out of the bottom of their trading range.  As I sat wondering what would happen next, I watched ANC make a bottom on the market.  I could see that it was revving up to get bought out by big money and preparing to make higher highs as it was already achieving higher lows.  

Since ANC was not responsible for the crash, I figured this market was going to have a lot of trades in at this price. With inexpensive prices, I thought placing a bulk order was as good of a move as any to create a future for the technology ANC protects. So, I snatched up a bunch of ANC and put them in a bot along with what I owned prior.

Since ANC was in my portfolio before this crash, the bulk order reduced my average cost. Yes, I’m underwater, but I’m not that underwater anymore. I just hope this asset has a future.

This bot is a great example of how my strategy works. In fact, this happened to be The Perfect Bot at the Perfect Time.

Kucoin: ANC / USDT Full Chart –

The above shows all the trades my bot made in the course of its life.  RED circles represent sell trades, and GREEN circles are buy trades.  As seen in Image 1, I started the bot on the bottom of what I think looks like a “head” and “shoulders.”  I then rode the impulse up to nearly $0.45 on lots of volume and the market came and settled back where it started. Then prices started jumping all over the place, giving my bot the chance to trade over 2000 times in the miniscule six-day trading time.

Kucoin: ANC / USDT Bot Measured by USDT –

Above shows the details upon closing this bot.  The profit percentage was through the roof, though the actual dollar gain was small.

Kucoin: ANC / USDT Bot Measured by ANC –

Bitsgap offers three ways to look at bot balances— in this case, USD, ANC, and USDT.  These tabs show the same bot details priced in each of those currencies.  In Image 2 you see the P&L value is 90 USDT.  This same value can be expressed in ANC as seen in Image 3 above.  When measured by ANC, which is the BASE currency, you can see that the value of ANC nearly doubled.  This fact makes sense because the price was about the same as when I started it. Yet, the USDT value of the bot was more than 2x where it began.

What Else Is of Interest?

If you look back at Image 1, you’ll see my original bot trailed up a tiny bit but had a vast trading range. Why did I do that?

I figured this dip was temporary, though I’ll probably doubt myself in hindsight. I thought that ANC would go back up to around $0.5, but it would take a while to get there, and I didn’t want to lose any opportunity to make a gain.

When I set my bots to trail up and have a small grid, they last a shorter amount of time because they don’t capture a full volume channel. As a result, a few impulses might raise the bottom of the bot.  Remember, as folks buy low and sell high, they tend to buy at the bottom of the trading ranges. This strategy usually creates large buy orders placed at the bottom that are hit frequently. This situation is when the most hand changing happens, and, ultimately, when I want to be in the bot.

Kucoin: ANC / USDT 15 Minute Chart –

As you can see in the image above, the bot trailed up slightly after the first small impulse. This movement is illustrated by the location of the initial trades— below the trading grid.

Kucoin: ANC / USDT 1 Minute Chart –

Pay attention to the large impulses up and down. This pattern is typical when people place large orders that clear the liquidity.  This image shows that someone bought up all the orders a few times, and my bot was happy to be on the other side of these transactions.

In times of uncertainty, these markets move way up and then halfway back down, then back and forth quite a bit. This movement is the tell-tale sign that the asset is being transferred from scared hands into firm ones.  This scenario tends to spike the acquisition and make it oscillate around the middle before falling out the bottom. All of these crazy fluctuations will eventually create my new bot bottom as well as new USDT.

Kucoin: ANC / USDT – Long Tail

Out of curiosity, I let this bot go, and not much happened. Image 6 shows that before closing, the Bitsgap bot had a few orders stuck in error mode. When I cleared them, there was one last buy order way below the market.  This order is responsible for the final trade before I closed the bot.

But What About Those Other Bots?

As I’ve said before, when the market crashes, I get a chance to start the bots over again. Stopping the bots is a great chance to get my BASE back and start them lower.  It may seem counterintuitive, but all the assets I bought are to be sold way later down the line, so I don’t much care what they are worth now.

I felt a little better once I canceled and re-started bottomed-out bots because it appears their new levels are great entries.  My goal is always to have longer-lasting bots, so I might gain that ability by starting at a really low bottom.  These bots may go on for several months, following a market sideways, and then perhaps go up on the next bull cycle.

If things get worse and the markets go down, I get my BASE back and can re-open bots on the assets where I see the value.  Check my percentage gains below.

Bitsgap Bot Dashboard –

Above is a screenshot of Bitsgap. I did a massive restart of them during the downtime after each market did a double-tap on the bottom, indicating a temporary bottom.

The left column is called the change percentage. It indicates how far the market has gone up (or down) since I initially started the bot.  Notice that all of these bots are off their bottom quite a bit.  This ensures that my bots trail up and operate longer as they aren’t usually near the bottom of the grid when this number is high.  Though, this is NOT profit for me, unfortunately.  If I opened a bot with USDT and bought the asset to start the bot, then that would be profit because I purchased the asset below the bot trading start.

For me, the ” profit ” is the middle percentage called the Bot Profit.  Since starting these bots five days and 2 hours ago, I have made this percentage back in QUOTE currencies.  Some give me ETH, BTC, and even USDT.  The average daily percentage is the amount of gain per day on average.  You can see the ADP is blown way out for the one I have highlighted above.  It shows “N/A” on” on the change percentage.  This is my BAX/BTC bot, and I don’t know why  it is difficult for bitsgap to track it. 

Kucoin: BAX / BTC Bitsgap Bot Details

When measuring the bot details by the bot’s BTC value, as shown in image 8, you can see that it’s gaining quite a bit.  This BTC is thrown into my Kucoin trading account, and I pull it into my main account to ensure that I’m gaining.  I clear the Kucoin BTC every few days, but I keep a few dollars worth of BTC in the trading account just in case one of the bots is in the middle of a sell or buy.  This situation, I believe, is what causes the errors in the Bitsgap Bots.

Kucoin: BAX/BTC Technical Analysis –

Okay, I’m no trader, but I play one on TV. Just kidding;) I don’t pretend to know everything about trading, but let me offer what I do know.  Look at Image 9, which shows my bot view differently.  See the blue lines connecting the top and bottom of the trading; these are called resistance lines and typically prove challenging to cross.  Technical traders closely watch the crossing of these lines, and the above market has formed a pennant.  This market appears to have broken out of the pennant to the up side, indicating a bullish trend for this market and my bot.  Go BAX!

Notice, I have no connection to the asset’s team or anything— this is a trader mentality.  BAX is a bot currency straight on through, and it’s no matter to me if it dissolves into nothing, as it seems it might. I’ll bot it to the bottom, and the lower it goes, the heavier the trading volume gets.  Note, though, that I sold the rest of my bag and this BAX is 100% de-risked.

Kucoin: BAX / USDT – Trading View Technical Analysis –

BAXUSDT in Trading View follows a downward-facing triangular channel. This pattern looks unfavorable for the asset, but its momentum is increasing.  So is the BTC momentum.  The hope here is to make the botting last, but there is so much uncertainty. But, who knows— maybe the project will be successful, and my original investment will payout.

Kucoin: BAX / BTC –

My hopes and dreams for extended botting are getting crushed. Image 11 shows disappointingly low trading at 61 sats, though there is a huge resistance here indicating there may be large support.

Stacking Bots

The BAX bot above is an example of a “Stacking Bot,” or a bot that trades altcoin against strong crypto like BTC, ETH, or BNB. “Stacking Bot” is a term I coined to help understand the purpose of these bots.  Stacking is the slow accumulation of a crypto, usually BTC, and indeed, the idea of stacking BTC isn’t new.  There’s a ton of information out there, and I won’t bore you with another “top ten” ways to do something.

Stacking isn’t to be confused with Staking.  Although the results are the same, they are achieved by different methods.  Staking is locking up crypto in a savings account and earning interest.  For example, I stake ATOM and earn additional ATOM at 15% annually.  Stacking is the earning of new crypto via other methods such as botting, via credit card rewards, or shopping on sites like Lolli. 

I mostly run stacking bots.

Folks who “stack” have a different mindset as they have shifted their time horizon farther out.  Thinking, well, jeez, what if we see $5,000,000 exchanged for 1 BTC eventually?  And what if that happened sooner than later?  Folks on the inside understand it’s only a matter of time for BTC to decouple from the NASDAQ and march upwards quickly.

Stacking bots are unique because they often don’t produce results worth caring about when they start. But over time, they pay off BIG. For example, in Image 8, you can see that according to Bitsgap, I have made 0.00114904 BTC.  This amount equals $34 as 1 BTC is worth about $30,000 today.  Well. I’m not that intrigued by $34. My stacking strategy is more about building value over time than viewing my USDT value at the moment. 

So, in hindsight, the ANC bot at the bottom of the market was probably a good idea. However, owning ANC here on forward may be risky as the technology might not ever get used again due to the Terra fall out.  I couldn’t help talking about the bot because it shows a full cycle of hype and what can happen as the result of a decently placed bot.

So, here’s the takeaway— 

Stacking is about patience and persistence. I prefer to think into the future, when 1 BTC will be worth 1 million dollars. That’s when I’ll sell this BTC I earned.  At that point in time, 0.00114904 BTC will be worth $1,149.04. That’s the gain I hopefully realize from this bot, which just might be “the perfect bot at the perfect time.” When will I see this increase, you might ask? I have no idea!