In August, the CryptoPulse strategy was upgraded to version 2.0, introducing an additional hedge against capital loss due to small unit price drops that could build a longer negative trend.
Senti-Bot results
Every month since the beginning of the year, we have been analyzing the performance of the CryptoPulse BTCUSDT strategy. The analysis for the period January – August for closed positions shows that the achievable results of the bot running on the CryptoPulse BTCUSDT strategy (+86%) are significantly higher than those achieved using the hodl method (+57%).
Also on a month-to-month basis, one can see the advantage of the Senti-Bot strategy over HODL. The algorithm behind CryptoPulse BTCUSDT was definitely better at protecting the invested capital from the declines experienced by herding in May (-6.9%), July (-4.1%) and August (-11.3%). Admittedly, unfortunately, it was not possible to close August with a positive result. The reason for this was the dynamic changes in the rate occurring in time segments of less than 15 minutes. And this is the period for which the trend and rate are predicted, and in such time intervals the bot issues potential orders. It should be emphasized that the prediction is made based on the analysis of emotions contained in posts published on social media. The optimal period for analyzing such posts is a 15-minute period (shorter time intervals do not allow reliable measurements of the intensity of emotions with which the posts are saturated, and thus could ultimately lead to erroneous trend and price predictions). According to our observations, price changes in intervals shorter than a quarter of an hour happen outside of emotions and are most often the result of decisions that are impossible to predict from the perspective of investor sentiment.
The effectiveness of the CryptoPulse BTCUSDT strategy is also measured by the drawndown ratio. As you can see, the strategy successfully protected capital from significant losses throughout the period. The maximum drawdown (in the January-August period) for the CryptoPulse BTCUSDT strategy was – 5%, while it was 21% in rearing.
The reported performance of Senti- Bot (in the period January-August 2023) in the form of the average level of profit on closed positions (+1.81%) far exceeded the average level of losses (-0.24%).
Also noteworthy is the profit factor, which stood at 2.39 at the end of August 2023. This factor is defined as the sum of all transactions with a profit divided by the sum of all transactions closed with a loss. A profit factor above 1.50 is considered good enough, and above 2.0 is considered ideal.
Results of the first commercial bot
Below are the bot’s results for our first commercial client (launched in September 2022). The bot operated on the Conservative strategy in 1h intervals until June 2023, and until July 01 it uses the new CryptoPulse BTCUSDT strategy in 15-minute intervals.
At the end of August, the profitability of the strategy involving hodling was clearly lower than the bot’s efficiency. However, it should be noted that over the course of these twelve months, in addition to generating profits, the bot successfully protected the investor from the spikes in the BTC price that occurred in November 2022 and in May, July and August 2023.
Also in the case of the reference bot of our first client (regardless of the strategy used), the maximum value of the drawdown rate is nearly three times better than in breeding ( bot -10%, HODL -29%).
