Understanding your Bots’ Performance
Have you started a couple of bots on the BOTS app? Are you looking for ways to understand your bots’ performance better? Well, you’re at the right place! This article offers insights into some of the factors that affect a bot’s performance and more.
The Basecoin influence on your BOTS’ performance
First things first, what are basecoins? A basecoin is essentially the asset the bot returns to when it is not in a trade. Each bot trades specific coins, but when it is not trading these coins, your investment in this bot is stored in the basecoin currency.
For example, if you have a bot with a BTC basecoin, the bot stores your investment in BTC if the bot is not trading. The same principle applies to any other available basecoin. Let’s say you have a bot with USDT as a basecoin; this means the bot will store your investment in USDT when the bot is not trading.
Some of the top basecoins that you will come across on our app are: BTC, ETH, BNB, ADA, LINK, LTC, and XRP.
Interpreting your Portfolio - Part 1
On the home screen of the BOTS app, you should see an overview of how your portfolio is doing, accompanied by all your active bots. To the right of “My BOTS” you will see a drop-down with 4 options, namely - %Euro, Euro, %Crypto, and Crypto.
The % Euro or Euro option shows the bot's performance, including the fluctuations between EUR and the bot's basecoin.
With the % Crypto or Crypto option, you only see the bot's performance against the basecoin of the bot without the exchange rate between EUR & the basecoin of the bot included.
Let’s look at this with the help of an example:
Here, you can see the bot’s performance in % Euro and % Crypto. The Surfing Big Coins bot uses BTC as its basecoin. And since Bitcoin has dropped significantly against the Euro over the past few months - this is something you will also see reflected in the bot's performance if you have the % Euro or Euro option selected.
However, bots with a BTC basecoin are often bots whose main focus is accumulating more BTC over the long term. These bots are, therefore, a great choice if you are optimistic about BTC rising against the Euro over the long term, as these types of bots try to accumulate more BTC for you.
This is well reflected when selecting the % Crypto option (left screenshot), which basically "hides" the price fluctuations between BTC and Euro. After selecting the % Crypto option, you can see that this bot has actually accumulated 4.48% of additional BTC since this particular user started the bot.
Interpreting your Portfolio - Part 2
The Small Coins bots are another example where the difference between the % Crypto(left side) and % Euro(right side) options are evident.
These two bots also have a BTC basecoin, so the same explanation as the Surfing Big Coins bot applies to these bots. Both bots have accumulated a bit more BTC, which can be seen using the % Crypto option. On the other hand, the rate between BTC and Euro has dropped significantly in recent months, and this can be seen with the % Euro option.
BOTS currently offers bots with different basecoins, but in the end, the principle remains the same. If one of your bots, for example, has a BUSD basecoin. Then the % Euro and Euro option will show you the bot's performance, including the price fluctuations between Euro and BUSD. By switching to % Crypto or Crypto, you will see the actual performance of the bot in BUSD without the price fluctuations between Euro and BUSD.
Impact of the Euro/USD exchange rate
Let’s have a look at another one of our bots - the Block Party 15%
This is a good example of the impact of the Euro/USD exchange rate on our bots. In % Crypto, there’s a nice profit visible since the weekly staking rewards of this bot have already been paid out several times for this user, but as soon as you display the results in % Euro, you’ll notice a decrease.
This happens because the exchange rate between Euro and USD has decreased more than the staking rewards that have been paid out in BUSD since the user started this bot.
Staking bots in the ‘Earn’ tab:
Another thing to note specifically for the staking bots we offer is: what is being staked? A quick recap on crypto staking: Crypto staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network.
Let’s consider the same example of the Block Party 15% as above. This bot trades ETH and USDC. The value of these can change over time, and this could be one of the factors affecting the bot’s performance. While this is something that’s good to know, you should also know that most of our staking bots already aim to limit this risk by hedging.
Reading your bots’ performance: A summary
Many factors can affect a bot’s performance, some of which are highlighted above. All our bots undergo rigorous testing in various scenarios before making them available to users. And we hope this article helps you better understand fluctuations in performance that you may encounter.
Don't let anyone tell you that there is such a thing as risk-free investing. No one has control over all economic influences. You can, of course, lose (part of) your investment. But always remember: Profit is the reward for risks taken!