Beat the 90–90–90 Rule: How Algorithmic Trading Outperforms Manual Trading in Crypto
Welcome to the world of cryptocurrency trading, a thrilling, dynamic, yet perilous landscape where fortunes can be made or lost in the blink of an eye. If you’ve dabbled in this sphere, you may have come across the notorious 90–90–90 rule.
This unsettling adage suggests this :
90% of manual traders will lose 90% of their capital within the first 90 days of trading.
A grim prospect, isn’t it?
The root of this unsettling statistic lies in the tumultuous nature of the market and the human tendency to make impulsive, emotion-driven decisions.
Fear, greed, overconfidence, lack of discipline… All these human traits can turn the trading journey into a rollercoaster of hasty decisions, followed by regret and financial losses.
But what if we told you there’s a way to navigate the crypto market that bypasses these emotional pitfalls, a method that brings a more stable, safe, and ultimately, profitable approach to trading?
Welcome to the world of algorithmic trading, where the decision-making process is entrusted to meticulously crafted algorithms, designed to make the most rational and potentially profitable trading decisions.
The Rise of Algorithmic Trading: Steady Wins the Race
Algorithmic trading, also known as algo-trading, is an approach that employs advanced mathematical models and formulas to make high-speed decisions and transactions in the financial market. The allure of algo-trading is its precision, speed, and lack of emotional interference, all of which make it an increasingly popular choice among modern traders.
The advent of algorithmic trading in the crypto landscape is a game-changer, addressing many of the issues that manual traders face. It offers a multitude of advantages, from the ability to execute trades at the best possible prices to reduced transaction costs, and of course, the elimination of emotional and psychological factors.
Unlike manual trading, where one moment of panic can lead to hasty decisions, algorithmic trading ensures the execution of the pre-determined strategy to the letter, regardless of market fluctuations.
No fear, no panic, no greed — just the steady, disciplined application of a well-planned strategy. This consistency is what makes algorithmic trading stand out in the volatile world of cryptocurrencies.
In an environment where market conditions can shift rapidly, the speed and efficiency of algorithmic trading can also mean the difference between a missed opportunity and a successful trade.
It’s important to note, however, that algorithmic trading isn’t about quick, overnight riches. Instead, it’s about stability and steady growth over time. The real profit comes from the long-term application of a consistent, disciplined strategy, devoid of the emotional volatility that often comes with manual trading.
The Stability of Algorithmic Trading: Emotionless Efficiency
The stability of algorithmic trading lies in its very nature — it’s designed to eliminate human emotion from the equation, providing a level of consistency and discipline that manual trading often lacks.
The world of cryptocurrency trading is a volatile one, with prices fluctuating wildly from one moment to the next. It’s all too easy for the fear of missing out (FOMO) or the panic of a sudden market downturn to lead manual traders into making hasty, ill-advised decisions. This is where the stability of algorithmic trading truly shines.
With an algorithm at the helm, trades are made based on pre-set rules and strategies, not on gut feelings or emotional reactions. This means that even in the face of market volatility, the algorithm remains unflinchingly consistent, sticking to its pre-determined strategy and executing trades with unwavering discipline.
Algorithms don’t get greedy when they’re on a winning streak, and they don’t panic when they’re on a losing one. They don’t get tired, they don’t get bored, and they don’t get distracted. They simply execute the strategy they’ve been programmed to follow, 24/7, providing a level of stability that manual trading can’t match.
Moreover, algorithmic trading takes advantage of the full 24/7 operation of the crypto markets, something that is humanly impossible for manual traders. Algorithms can monitor the markets around the clock, scanning for opportunities and executing trades even while you sleep. This consistent market presence allows algorithmic traders to capitalize on opportunities that manual traders might miss, further contributing to the stability of their returns.
While taking a look at how this stability translates into real-world results, and based on our experience at UpBots and SuperBots, we’ve seen that the vast majority of users who move their capital or change their trading strategy are the ones who end up in the red.
Conversely, those who stick with their strategies and allow their bots to do their work tend to see stable, consistent returns over time.
In other words, the key to successful algorithmic trading isn’t just about having a solid strategy — it’s about having the patience and discipline to stick with it. And that’s where the stability of algorithmic trading really comes into its own.
Safety in Numbers: The Surprising Success Rates of Algorithmic Trading
Safety and success in trading often boil down to numbers and percentages. Let’s take a look at the startling contrast between manual trading and algorithmic trading.
As we said, the rule of 90–90–90 is a grim adage in manual trading circles: 90% of traders lose 90% of their capital within 90 days. It’s a chilling testament to the harsh realities of manual trading, illustrating just how quickly things can go south.
To give an example, let’s contrast that with the success rates of algorithmic trading. Based on the data of our users, we’ve seen that a whopping 86% of our users are in profit after six months of using our algorithmic trading bots. That’s a vast contrast to the 90–90–90 rule of manual trading, and a testament to the effectiveness and safety of algorithmic trading.
So why do algorithmic traders fare so much better? It’s largely down to the reasons we’ve already discussed: the stability and consistency of algorithmic trading, and the elimination of emotional decision-making.
But there’s more to it than that.
Algorithmic trading also allows for a higher level of diversification than manual trading. Rather than being limited to the trades a single person can manage, algorithmic traders can have multiple bots running simultaneously, each with their own set of strategies and targets. This diversification helps to spread risk and increase the potential for returns.
Furthermore, algorithmic trading is inherently more data-driven than manual trading. Bots can analyze vast amounts of market data in real-time, using complex mathematical models to identify profitable trading opportunities. They can also backtest trading strategies against historical market data, helping to fine-tune their algorithms for maximum effectiveness.
The bottom line? Algorithmic trading doesn’t just provide stability and efficiency — it offers a level of safety and success that manual trading simply can’t match.
Playing the Long Game: Why Algorithmic Trading is the Key to Long-term Profits
In the world of trading, patience isn’t just a virtue — it’s a necessity. While quick gains can be tempting, the real path to success lies in long-term, sustainable profits. This is where algorithmic trading comes into its own.
Think about it: Manual traders often get caught up in the heat of the moment, making impulsive decisions based on short-term market fluctuations. They might score some quick wins, but they also risk suffering heavy losses. It’s a high-stakes game that requires constant vigilance and a strong stomach for risk.
Algorithmic trading, on the other hand, is all about playing the long game. Trading bots aren’t swayed by short-term market volatility or the fear of missing out on a big trade. Instead, they stick to their pre-programmed strategies, calmly and consistently executing trades based on logic and data. They don’t rush into trades or make hasty exits; they take the steady, calculated approach that leads to long-term profitability.
It’s about steadily growing your capital over time. It’s about compounding small gains into substantial returns, without the risk of emotional decision-making or impulsive trades.
With algorithmic trading, you’re not just trading for today — you’re investing in your future. And as the old saying goes, the best time to start investing was yesterday. The second best time? Right now.
The SuperBots and UpBots Solution: Elevating Your Trading Game
You’ve seen the pitfalls of manual trading and the advantages of algorithmic trading. But how do you make the leap from one to the other? That’s where SuperBots and UpBots come in.
SuperBots and UpBots are designed to make algorithmic trading accessible to everyone, regardless of their experience level. With our platforms, you can easily set up your own trading bots, customize your trading strategy, and start reaping the benefits of algorithmic trading.
Here’s what you can expect when you choose SuperBots and UpBots:
- User-Friendly Interface: Our platforms are designed with the user in mind. You don’t need any programming knowledge to use our trading bots. Simply set your parameters, and let the bots do the work.
- Customizable Strategies: You’re not locked into a one-size-fits-all strategy. With SuperBots and UpBots, you can customize your trading strategy to suit your individual goals and risk tolerance.
- Emotion-Free Trading: Our trading bots operate based on logic, not emotion. They stick to your pre-set strategy, ensuring that every trade is rational and unbiased.
- 24/7 Trading: The crypto market never sleeps, and neither do our bots. They operate 24/7, making trades while you sleep, work, or relax.
- Transparent Reporting: With SuperBots and UpBots, you can easily track your trading performance. Our transparent reporting tools give you a clear overview of your profits, losses, and overall progress.
It’s time to step out of the 90–90–90 club and into the realm of successful trading. With SuperBots and UpBots, you can harness the power of algorithmic trading and elevate your trading game.
There’s a world of profitable trading beyond the pitfalls of manual trading. Why not explore it with us?
Give SuperBots and UpBots a try today, and join the 86% of our users who are enjoying profits in their trading journey.
Your future self will thank you!
Algorithmic trading is here to stay, and it’s revolutionizing the way we trade. Don’t get left behind.
Take the first step towards a more profitable trading future with SuperBots and UpBots today!
The UpBots team.
