A couple of months ago I copied a bot setup I found on 3Commas marketplace. Nothing special with the setup but it was the best performing bot in the ranking during that day.
I was wondering what made it so special and figured that it was nothing to do with the deal start conditions or the safety order placement. It was to do with the pairs that the creator picked:
Pairs that were about to breakout bullish
So I decided to copy this bot and use BA pair selection and let it run on paper trading endlessly. My expectations were that some of the pair selections strategies were going to get destroyed since the bot doesn’t have SL and it’s max % deviation is not as deep to not get in trouble if running unattended.
Today it’s been 38 days since the experiment started and I want to know what are the results.
From the point of view of PNL realised, all bots look great since all managed to make decent profits. In average around 4% with some even 8%.
But if we pay attention to unrealised PNL we see a different picture: some have more than 10% red bags which is exactly what we were expecting so the million dollar question is:
Is there any pair selection strategy that helped the bot realised more profits than any of its existing red bags? in other words is there any bot in green right now? and the answer is yes.
In the rest of the article we will discuss the best performing pair selection strategies used and most importantly why they made this particular setup succeed during these past 40 days.
There are a few pair selection strategies that really helped these bots.
MCR and CGR both made around 2% profits and don’t have any red bags. But that’s kind of expected since they use the market cap and the largest this is the less their volatility and the easier is to close the deals. For example Johano selected is a great example where without any pair selection strategy we manage to close all deals thanks to using top market cap coins.
But there’s another survivor: BUS. Yes, bullish sentiment from lunar crush. Coins with high bullish sentiment have made around 5% profits and have currently less than a dollar in red bags. That’s pretty interesting since I was expecting to see LCAR, HUSD, DVO u other selections as the winner.
Let’s dig a bit more into what happened since there is a context: bitcoin season and the bot design are both the biggest aspects we need to consider to better interpret the results.
Bitcoin season
We’ve been pretty much in BTC season. BTC dominance has been heading straight to the top of the range of the past year and its threatening with breaking out to the upside. This leaves the majority of the ALTs behind. But still we are picking the coins with most bullish sentiment and that is alleviating somehow the pains of trading ALTs during a BTC season. Eventually BTC will cool down an allow ETH and the rest of the ALTs to also make their move up, as long as BTC holds in the current range without any major pull back. And if that happens we should revisit what happened with those red bags and whether any other pair selection takes the lead if so.
Bot design
The bot we are using has a 17% max deviation and almost no particular strategy for entering deals. Other bot designs like QFLO or Chris might end up showing completely different results. In fact, QFLO seems to be performing better with HUSD, MVO and others instead of with BUS. QFL triggers buy when the price has retraced which is not a time where there’s much bullish sentiment about a coin in social media, in fact it’s the opposite. That’s why pair selection strategy needs to go hand-in-hand with your deal start condition and the rest of the bot design including SO placement, SL, TP%, etc.
