We are now finishing the second month of Senti-Bot’s 2025 year in the emotion market. Thanks to you – our customers and partners – Senti-Bot continues to grow, providing valuable solutions and helping us better understand market emotions.
Without further ado, welcome to the recap of February!
Table of contents
Video Summary (Polish version)
Let’s recall what Senti-Bot is
The world is changing, but human nature remains the same. Which makes human emotions fatal advisors, especially in the world of financial markets, where the stakes are high. Major investment funds know this – they harness the power of behavioral finance and track sentiment because they understand that emotions drive human action.
Every 15 minutes, Senti-Bot constantly analyzes a huge amount of social media, guiding decisions based on investors’ raw emotions.
Our investment philosophy
During the development of the Senti-Bot tool, we followed the following investment principles:
- The main objective of Senti-Bot is to reduce losses, and profit generation is a secondary objective. We believe that this approach in the long term allows in achieving success from investments.
- Repeatability of results is key, which is why every improvement in the tool focuses on maximizing portfolio metrics such as the Sharpe i Calmar.
- Every decision in the Senti-Bot strategy must support long-term results.
Senti-Bot results in February 2025
We ended February 2025 for Senti-Bot on the cryptocurrency market with a total gross score of 374% (marked in red). We provide this result to enable comparison of Senti-Bot’s efficiency with other tools available on the market. The net return achieved (after taking into account the Binance exchange’s commission costs) since the project’s launch in January 2023 totaled 311% (marked in blue) and 36% for the last 12 months.
The main objective of Senti-Bot’s strategy is to minimize losses first and only secondarily to generate profits. The chart below shows the maximum decrease in the value of the portfolio in February, the so-called “loss”. drawdown. The validity of our strategy is confirmed by months like this one. Despite the fact that the price of bitcoin fell at its worst moment, by as much as -23.5%, we managed to limit the portfolio’s loss to -11.7%.
The final result for the month was -9% (marked in green), breaking Senti-Bot’s seven-month series of portfolio value increases. Thanks to effective capital preservation, our result was significantly better than Bitcoin, which ended the month with a loss of -17.8%.
We emphasize, however, that Senti-Bot’s goal is not to directly compare performance with Bitcoin. Our strategy is not to passively follow the market, but to actively respond to changes in investor emotions. We aim to mitigate risk and maximize returns regardless of the direction of the cryptocurrency market, which sets us apart from simple buy-and-hold strategies.
Senti-Bot achieves its effectiveness primarily by pre-emptively closing positions ahead of anticipated declines in Bitcoin’s price, which were discernible from analysis of emotions expressed on social media. The effectiveness of this approach is confirmed by the average values of transactions ending in profit and loss:
- The average profit per order is: +1,8%,
- The average loss per order is: -0,37%.
Senti-Bot performance indicators
We emphasize that the effectiveness of Senti-Bot should be considered over a period of more than one or two months.
Important elements of evaluating the effectiveness of our tool are measurements of such indicators as:
- Drawdown
- Profit Factor
- Sharpe ratio
- Calmar indicator
Drawdown
Drawdown is, simply put, the largest percentage reduction in capital value from its highest level. It is calculated by comparing the highest previous capital level with its current value.
The maximum drawdown over the entire period for the CryptoPulse BTCUSDT strategy was -19.11%, which occurred in April. We had already introduced updates to the Senti-Bot strategy on April 30, and the drawdown has been systematically reduced since then (see chart below).
By comparison, the maximum drawdown for the Bitcoin hodling strategy was as high as -29.6%, showing Senti-Bot’s clear advantage in managing risk and protecting your capital.
Profit Factor
Another measure that deserves attention is the profit factor. The ratio 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 for ideal.
The Profit Factor for Senti-Bot was 1.32 at the end of February 2025. We can interpret that for each transaction the bot gained on average 32% more than it lost.
Sharpe ratio
In order to assess the ratio of the return achieved to the risk taken, we track two main indicators. The first is the Sharpe ratio, which measures risk-adjusted return (measured by average deviation). The higher the values of this indicator, the better the investment is considered. Investments for which the Sharpe Ratio is greater than 3.0 are considered among the best.
For Senti-Bot, the Sharpe ratio at the end of February 2025 was 3.45, which means that it was much higher than for most mutual funds. This is significant because a higher Sharpe ratio means more than 3 times higher returns relative to risk, which confirms the attractiveness of the strategy made available to you.
Calmar indicator
Calmar Ratio is the second main indicator of investment performance, which determines the ratio of the rate of return (calculated on an average annual basis) in relation to the maximum slippage. In general, the higher its value, the better. This is because it means by how many times the average annual cumulative rate of return exceeds the past slide. Values above 1 mean that the rate of return, was higher than the landslide.
At the end of February 2025, the Senti-Bot’s Calmar index was 4.53. Thanks to its high returns, the bot has provided you with a score almost 5 times higher than its maximum drop in value.
Table – summary summary
Thank you for your trust and for supporting the development of Senti-Bot! We encourage you to follow our results – we believe that the best is yet to come!
SentiStocks team