|
Title: Butter-Bot vs buy and hold Post by: velacreations on November 08, 2013, 08:24:32 PM I'm looking at butter bot, which is an EMA trading bot: https://bitcointalk.org/index.php?topic=197175.0
You can back test strategies, and I've got a decent strategy, but when back tested for a few months, profit is around 50%. That sounds great, but when you look at bitcoin value, the value increased by 250% in that same time frame. So, is the EMA strategy a good strategy for something like bitcoin, that increases in value so quickly? Or is it better to just buy and hold? Title: Re: Butter-Bot vs buy and hold Post by: velacreations on November 08, 2013, 08:34:20 PM yeah, I'm not seeing many of the trading bots competing with B&H.
BUT, making some manual moves could have significantly increased your holdings during this run-up, especially at major resistance points, like $200 and $300 Title: Re: Butter-Bot vs buy and hold Post by: pulsecat on November 08, 2013, 08:56:31 PM yeah, I'm not seeing many of the trading bots competing with B&H. BUT, making some manual moves could have significantly increased your holdings during this run-up, especially at major resistance points, like $200 and $300 Let me put my two cents in. There are lots of strategies that can compete with Buy and Hold: For example MACD https://cryptotrader.org/backtests/7hzxsGhAyanDoKpZK Code: 2013-10-09 00:00 Simulation started. Balance: 5000.00 USD As compared to B&H https://cryptotrader.org/backtests/SgNaSdx62vpNniua3 Code: 2013-10-09 00:00 Simulation started. Balance: 5000.00 USD Also don't forget that Buy and Hold strategy loses money when market crashes. Title: Re: Butter-Bot vs buy and hold Post by: Xer0 on November 08, 2013, 09:42:22 PM Code: 2013-10-17 04:00 SELL 36.298 BTC at 152.30 lol, this bot was such a genius like me Title: Re: Butter-Bot vs buy and hold Post by: PrymeTyme on November 08, 2013, 09:44:33 PM if someone is unable to make any profit in a BULL market ... go look for something else.. or simply Buy and Hold
Title: Re: Butter-Bot vs buy and hold Post by: velacreations on November 08, 2013, 11:42:12 PM if someone is unable to make any profit in a BULL market ... go look for something else.. or simply Buy and Hold yeah, it's not just about making money, but maximizing returns, as well. bull markets don't last forever.Title: Re: Butter-Bot vs buy and hold Post by: velacreations on November 08, 2013, 11:45:42 PM Let me put my two cents in. There are lots of strategies that can compete with Buy and Hold: yes, I'm sure some strategies are better, the ButterBot uses EMA, seems to be a long-term strategy, not for big run ups like we've had lately. It seems that MACD doesn't fair so well on btc-e, though.For example MACD https://cryptotrader.org/backtests/7hzxsGhAyanDoKpZK ... Also don't forget that Buy and Hold strategy loses money when market crashes. Any other good strategies you could share with us? I'm a total newbie, so learning about these strategies helps me understand all of this a lot more. Thanks for sharing! Title: Re: Butter-Bot vs buy and hold Post by: bitleif on November 09, 2013, 12:18:04 AM Sorry to be a noob, but could anyone explain what "EMA" means?
Title: Re: Butter-Bot vs buy and hold Post by: notme on November 09, 2013, 12:21:36 AM Sorry to be a noob, but could anyone explain what "EMA" means? http://en.wikipedia.org/wiki/Moving_average#Exponential_moving_average Title: Re: Butter-Bot vs buy and hold Post by: velacreations on November 09, 2013, 12:25:46 AM Sorry to be a noob, but could anyone explain what "EMA" means? Exponential Moving Average: http://en.wikipedia.org/wiki/Exponential_moving_average#Exponential_moving_average%20(concept)It's a strategy, described in detail here: https://bitcointalk.org/index.php?topic=60501 ButterBot is a bot that executes that strategy as a trading algorithm. I'm pretty new to all of this, myself, so don't take advice form me. :) Title: Re: Butter-Bot vs buy and hold Post by: velacreations on November 09, 2013, 04:35:44 PM I'm loving the cryptotrader.org simulation engine! Awesome!
I have yet to find an algorithm that beats buy and hold for the bubbler. any ideas? Title: Re: Butter-Bot vs buy and hold Post by: Joerii on November 09, 2013, 05:37:53 PM I'm a fan of BBOT and have been using it for a few months.
It can cost you money to have it trade too much. You get losing trades called "whipsawes" when the bot sells due to sensitive sell trigger. Its then buys back when the EMA ( Exponential Moving Avarage ) lines cross again. you lose like 1 or 2 % per trade like that but after a while it adds up. The biggest reason I use BBOT instead of buy and hold is this : it prevents my investment from taking a BIG hit when there's a crash and MtGox's trading engine lags so badly that I can't sell. BBOT is tied into the trade API, and can sell my BTC even if I cannot do so manually. So I see BBOT as an insurance policiy against that. Title: Re: Butter-Bot vs buy and hold Post by: velacreations on November 09, 2013, 05:57:27 PM is BBOT butterbot?
Title: Re: Butter-Bot vs buy and hold Post by: ThrillHou on November 20, 2013, 01:22:02 PM Had a similar xperience with BBot. It's all about the thresholds IMO. Also are you trading 10 21 hourly data or??? Some many things to tweak with this BBot but how do I do this backtesting???
|