AI Crypto Trading Bot Experiment

Jul 18, 2024

AI Crypto Trading Bot Experiment

Experiment Overview

  • Test conducted over 4 days using AI crypto trading bots to see profit potential.
  • Invested $3,000 in two trading bots: one for Bitcoin and one for Solana.
  • Goal: Determine ease/difficulty in making money using trading bots.
  • Part of a series where the tester tries new crypto products with real money.

What Are Grid Bots?

  • Futures Grid Trading: Automated strategy trading futures contracts within a price range.
    • Buys low and sells high within a predefined grid to profit from market volatility.
  • Types of Futures Grids:
    • Long Futures Grids: Only hold long positions.
    • Short Futures Grids: Only hold short positions.
    • Neutral Futures Grids: Hold both long and short positions, adjusting based on market movement.

Setting Up the Bitcoin Bot

  1. Platform: OKX
  2. Method: Manual strategy for Futures Grid
  3. Price Range:
    • Lower Limit: $25,200
    • Upper Limit: $27,100
  4. Grid Mode: Arithmetic with 12 grids
  5. Leverage: 10x, using $2,000 of the bankroll
  6. Advanced Settings:
    • Trigger Type: Instant
    • TP Price: $28,200
    • No stop loss (will monitor manually)
  7. Objective: Profit from Bitcoin’s sideways movement between the set price range.

Setting Up the Solana Bot

  1. Platform: OKX
  2. Method: AI strategy for Perpetuals
  3. Leverage: 7x, using $1,000 of the bankroll
  4. Advanced Settings:
    • TP Price: $21.50
    • No stop loss (will monitor manually)
  5. Objective: Profit from Solana’s range within the AI-predetermined price structure.

Day 1 Results

  • Bitcoin Bot: Up $10 (+0.48%)
  • Solana Bot: Down 2% (-$21)
  • Other Bots:
    • WorldCoin: Up 26.3%
    • Curve: Up 7%
    • Overall positive balance with previous bots.

Day 2 Update

  • Bitcoin Bot: -$2 (due to unmatched sell orders from a rapid price increase)
  • Solana Bot: +$27 (due to price increase and sale order matching)
  • WorldCoin Bot: Closed position with significant profit.
  • Overall: Small profit in two days, some bots performing better than others.

Key Learnings

  1. Effective Markets: Grid bots work best in sideways and volatile markets.
  2. Monitoring: Constant monitoring can manage risks and avoid setting stop losses.
  3. Future Plans: Next experiment will focus on short-term strategies and automation.

Profit Summary (Over 4 days)

  1. Total Profit: $104 with initial investment of $3,000
  2. Daily Average Profit: $26/day including pre-recorded bots, $16/day excluding them.
  3. Percentage Gain: Relatively small but positive.

Conclusion

  • Grid bots can generate profit in the right market conditions.
  • Monitoring and adjustment improve performance.
  • Future videos will explore different bots and strategies.

Next Steps

  • Experiment with more bots and short-term strategies.
  • Audience suggestions for future products and bots to test.

Final Notes

  • Link to OKX for trading and mystery box worth up to $10,000.
  • Stay updated for more experiments in the series.
  • Be cautious and don’t invest more than you can afford to lose.