Senti-Bot in July 2024

Video Summary (Polish version)

Changes at Binance

Before we move on to discuss Senti-Bot’s performance, we would like to remind you that with the end of June, all Binance Futures accounts in Europe on which Senti-Bot operates must accept an update as required by the MiCA.
Here’s what you need to know about Binance Futures credit trading:

In order for Senti-Bot to continue operating, the account user must accept the Futures Service Agreement and then click [Potwierdź], to complete the upgrade.

Link to the Polish version: How to use Binance Futures Credit Trading Mode.

• The customer’s account becomes based on Binance BNFCR tokens,
• For the bot to work, after accepting the terms and conditions, it IS necessary to convert USDT to BNFCR.
  Instructions on how to convert USDT to BNFCR can be found below.
• Each gain/loss is expressed in the BNFCR balance.
• No more USDT can be withdrawn than the net balance (in case the amount of BNFCR is negative).
• If there is a profit, the amount of BNFCR increases.
  If the amount of BNFCR is positive and we would like to withdraw it from the Binance Futures account, we should go through the whole process described below.

How to convert USDT to BNFCR?

Given that you probably have your USDTs in a Futures account here are the steps to take to convert them to Binance BNFCR tokens:

1. Transfer the USDT in your possession to your Spot account.
2. Exit the Futures account and go to the “Spot” tab.
3. Then convert the USDT you have into BTC.
4. Back to USD-M Futures.
5. Press “Transfer” again and select the purchased BTC.
6. Under the “Assets” tab, you will find a “SWAP” option next to the BNFCR token.
7. Swap BTC for BNFCR and that’s it!

If you encountered a problem while trying to convert then go ahead and report to us.
If you want to withdraw BNFCR’s, go through the same process backwards.

Senti-Bot results

We want to share with you an analysis of Senti-Bot’s effectiveness in the cryptocurrency market, allowing you to compare it with other available tools. We present the gross results (in red), which do not include the cost of Binance exchange commissions, which allows you to accurately compare the effectiveness of our bot with other solutions. The total net profit since the beginning of the project, is 220% (blue).

Senti-Bot achieved its effectiveness, mainly by anticipatory exiting positions ahead of anticipated declines in Bitcoin’s price, discernible in emotions analyzed from social media. Evidence of the effectiveness of this approach was provided by the average values of transactions ending in profit and loss:

• The average profit per order is: +1,66%,
• The average loss per order is: -0,34%.

July began with a more than 20% drop in bitcoin, which Senti-Bot largely managed to avoid.
After the cryptocurrency rebounded significantly, Senti-Bot capitalized on the increases, eventually ending the month with an 11.8% gain and thus surpassing its historical performance.

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 assessing the effectiveness of our tool are measurements of such indicators as:

• Drawndown
• 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%, while in the Bitocin hodling it was already -27.6%.

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 is considered ideal.
The Profit Factor for Senti-Bot was 1.35 at the end of July 2024.
We can interpret this to mean that for every transaction the bot gained 35% more on average 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 July was 4.32, significantly higher than for most mutual funds.
This is significant because a higher Sharpe ratio means 4.3 times higher returns relative to risk, which continues to confirm the attractiveness of our investment strategy.

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 July, the Calmar index for Senti-Bot was 5.37. Thanks to high profits, the bot has provided you with a result of more than 5 times its maximum drop in value.

Table – summary summary