TRADING BOTS: RISK/REWARD
Imagine trading the market 24/7 without lifting a finger.
It is not too good to be true, but it is not without risks either.
With the right approach and the right bots, you can create a profitable passive income stream.
I am sharing my journey on Twitter and I will update you here as well so you can use my experience to determine if this is for you and, if so, which bots suit you best.
I use AstraBit trading bots. I partnered with them and my referral link provides a discount and supports me.
I never provide any advice, financial or otherwise in any of my articles. This one is no different.
Questions covered:
- What are they?
- How does it work?
- What are the risks?
- What are the results so far?
WHAT ARE THESE BOTS?
AstraBit create bots and has a marketplace of strategies.
Users subscribe to a strategy then subscribe to a bot to run the strategy, which means 2 monthly subscriptions to pay.
In exchange for these subscriptions, users benefits from teams working full time to improve overall performance.
These strategies are designed, monitored and improved by different traders, called strategists (suprising!).
To be accepted by AstraBit, strategists must show transparency, professionalism and of course good results.
Strategists put their money where their mouth is, which means they have everything to gain to keep improving and upgrading their bots.
It’s a brilliant WIN-WIN-WIN dynamic:
- Strategists develop and improve their bots, which make more money to then AND attracts more subscriptions
- AstraBit sells more bots
- Users print more money
HOW IT WORKS
The user:
- Creates a bot
- Links the bot to their CEX account (e.g. Bybit or OKX)
- Adds a strategy to their bot
- Press Enable and voilà!
Of note, Kucoin has a history or missing out signals, and I missed a couple myself on Kraken. OKX and Bybit work best. Use my links (see previous sentence) and get a small discount of fees and support my work.
Because of subscriptions, the balance the bot will use needs to be decent. A balance under $1K may not make enough in a month to cover fees (roughly $90/month per bot).
Small wallets should be looking at Perpy Finance, where you can copy trade pro traders without monthly fees; you give a cut of the profits instead.
I have never tried it yet, but it looks like a solid platform. Please let me know in the comments if you are using it and what is your feedback.
instead. I’ve never tried it, but looks promising
RISKS
Here are all the risks I can think of:
- Murphy’s law: after getting a bot, if its first 3–4 trades are losses, the bot ends up with less money to trade with, which means it will take more time to make it all back
- The nature of trading: some weeks will be red. Fortunately, more weeks should be green
- Glitch: something can go wrong with the connection between the bot and your exchange. I see this as very unlikely, at least on AstraBit’s side, because they have a team monitoring 24/7 and take security extremely seriously, but you never know; we are talking smart contracts and tech here
- Yourself! You are a risk to your own bot. For example, you may become impatient and pull the plug after only 5–6 trades, jumping to conclusions way too quickly and missing the subsequent gains. You may panic and manually close a losing trade, only to see the market reverse and that trade would have made a profit.
REWARD
Let me show you my results.
Breadbytes has a great website where you can explore the trade log to see the performance depending on a specific timeframe, balance and leverage! Scroll down and give it a go by clicking here.
On my end, I have Cinnamon Toast (CT) and Short Bread (SB) from Breadbytes. CT had a great 2022, then a rough start in 2023 but man, what a comeback!
Balance: the max the bot can use at 5X leverage, i.e. $8K
Short bread (SB)
Same rough start of the year, and slowly climbing its way up. It’s considerably better since its last upgrade.
I’m telling ya: these guys never stop working and improving.
Balance: $6.8K
Leverage: 5X
See here the most recent results
I’ve had Horus since December, but I had to reset my bot (the API) because it’s mandatory with Bybit (annoying, but extra security).
I was up a bit, but here’s my results since Feb 8:
Balance: $3.7K
Leverage: recently switched from 5X to 3X
I also recently grabbed Boreas but of course it waited for me to do so to go on a losing streak…! LOL It’s back up now; let’s see how it goes.
Balance: $1255
Leverage: 4X
GOBLIN
This recent performance was unexpected. Since its V2, it’s been consistently in the green, which is why I increased the balance on March 15, when I changed my bot from Kraken to Bybit (hence the recent to $0 on the chart).
Balance: $878
Leverage: 4X
Evidently, I’ve done so at the absolute worse time. Should have I stayed with the same balance, I might have been OK.
Finally, I have the CRE-45 from Warp.
Balance: $1.2K
Leverage: 3X
I was recently at break-even (minus subscription fees) until the last couple of trades, which created losses.
According to their spreadsheet, CRE-45 is their better bot. I had SPEAR but had to pull the plug unfortunately.
I salute Warp’s transparency here. No one is cooking the books!
Moreover, I’m hearing great feedback about a new strategist’s bots: Cross Chain Labs.
Get 20% off your first month on Elevate, Warp and Breadbytes bots (for both the bot and the strategy), and get 15% off your first TWO months on Goblin by using my referral here. This encourages me a bit; thank you!
I hope this thread help you out in better understanding what AstraBit bots are and if they can be a good fit for you.
Don’t hesitate to reach out if you have any questions!
