Copy secure and fast on Binance

 

 

 

Profit / Loss Calculation from Live Trading with Ether (out-of-sample)

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277% Profit in 2 Years and 4 Months Live Trading!

11.7.2024

After fixing the chart calculations on 11.07.2024, the real cumulative profits emerged! We achieved an outstanding profit of 277% in 28 months, with the highest drawdown being 14%. On average, the drawdown phases were around 8%. The bot behaved exactly as planned!

 

 

 

The trades of the DMX Bot LOW-RISK portfolio can be copied across multiple exchanges.

Where can I copy it? Find out where to copy through this updated article.

Guide: How to copy trade on Binance?

 

 

 

Whatsapp Groups

Chat Group, approval by admin, announcements and chat

https://chat.whatsapp.com/EFXNhrodgBO6Ld5jorteJY

Community Group, free to join, announcements only

https://chat.whatsapp.com/FLGLCnAxwAy3P8aypC7ify

 

 

 

Track Record

We are as transparent as can be and you can download the up-to-date track record as a CSV file here.

https://damianhunziker.net/track-record.php

 

 

 

Copytrade Time-Limited
High Profit Trading Bots

The DMX strategy for automated trading of cryptocurrencies and risk assets

Requirements

1. Low drawdown phases in various risk assets and major coins through strict risk management, among others.

2. Monetization of significant price movements through a breakout system, and dynamic stop losses, among others. Generates stable profits with low loss phases.

Generates stable profits with low loss phases.

Focusing on low-loss phases is mandatory for automated strategies. It’s also crucial to use a coherent, stable strategy that is technically logical and functional, and only in the final step is it important for it to yield high profits in backtesting. Additionally, a strategy should not be overly optimized/fixed on historical data, as it can produce massive numbers in backtesting, which doesn’t necessarily mean it can perform in reality.

The core of the DMX strategy uses Bollinger breakout strategies. Some world-renowned traders swear by the Bollinger squeeze strategy. Care was taken to use non-correlating indicators. DMX is only weakly optimized and works with various crypto pairs and more stable risk assets, not just with ETHBUSD, although currently, that’s the only one I’m handling.

Backtesting results of various risk assets and cryptos (in-sample)

All fees are included except for the 8-10% fee on copytrading profits.

Where are we trading? Which crypto pairs? What leverage?

Currently, only ETHUSDT is intended for trading, using short and long positions. No leverage is used, and the portfolio is offered on multiple exchanges. The time horizon is 2-3 years from 6.2.2023.

Advantages/Disadvantages Compared to Buy and Hold

Disadvantages

• Often lower rates compared to professional traders.
• Doesn’t use sentiment indicators, and doesn’t consider news. The strategy currently works with technical indicators derived from the price and volume data of the assets.

Advantages

• Not exposed to the high fluctuations of the crypto markets.
• During times when cryptos divide by 4, you might incur only a 10% loss or even make profits.
• Standardized risk management
• No leverage
• Operates 24/365.
• Consistent and immediate execution of strategies
• Less involvement required, no need to trade manually.

Strategic Description

The DMX strategy aims to combine meaningful concepts of technical analysis. The strategy is essentially a Bollinger breakout strategy. The Bollinger signals for entry and exit are confirmed or rejected by various other signals. Divergences and divergence zones of indicators are used, along with a range and volume filter and moving averages to determine market direction. From a timeframe perspective, we swing trade. The short strategy differs significantly from the long strategy.

Dynamic Stop Loss Policy

The DMX strategy combines Point 1, focusing on low loss phases, with an approach to capture longer-term trends, Point 2 of the requirements. In practice, this means that once a trade has passed through the tight stop-loss policy imposed on a young trade, a relatively looser policy is adopted when the trade reaches a certain age and a certain paper profit. I do this to give it the chance to capture major trend movements, which can lead to these super trades.

This results in some losing trades that cannot be completely suppressed but often mean low losses. As an investor, you then wait for super trades to emerge, which are ultimately expected to make a big profit.

Handling Loss Phases Correctly

When we look at the charts, we see that actually, quite a few trades have made the entire profit. No profits were made for a long time. This scenario can be frustrating, but it must be borne in mind that this is how the strategy works and everything is running as it should. It’s all about enduring these phases, and it’s much more about buying time in the market (through them) and having the opportunity to participate in the super trades. Sideways/downward phases are good and indicate that the probability of a subsequent profit phase increases.

Fundamental Analysis

Why is only Ether traded?

The bot is deliberately used only with Ether because I assess the potential of Ether in the near future as exceptionally high. The Ethereum blockchain has the largest developer community and probably the largest ecosystem of applications.

With the switch to Proof-of-Stake, Ether remains a hot topic in the world, and if successful, it will relax the entire blockchain and thus the entire metaverse because so many applications depend on the fees and performance of the Ethereum blockchain, e.g., in the NFT sector where certain games were almost blocked due to fees. That’s why I expect a bonus for Ether compared to other altcoins and even Bitcoin, as long as the positive effects of the switch to Proof-of-Stake continue.

Additionally, Ether’s volume and market cap are very high, so there is less manipulation, and it is well suited for technical analysis approaches.

Timeframe for Expecting Profitable Execution

It is hard to imagine that Western governments will regulate the crypto space so strongly in the next few years that it would significantly weaken Ether. I assume that they do not want to hinder these new technologies (metaverse, games, NFTs, etc.) in their early development. So, we should find at least a loose regulatory climate in the West for the next 3-5 years, in which prices will continue to develop in the same range. This would also mean that crypto prices will continue to follow economic cycles, and we can expect at least one more hype.

In at most 3 years, the market position and legal situation of Ether must be reanalyzed. Therefore, the bot in its current version is associated with a timeframe of 2-3 years (from 6.2.2023).

During this time, the likelihood is reasonably high that the parameters for trading with Ether will continue to behave similarly to the last 5 years, resulting in similar annual profits between 80% and 150%.

Technical Description

As statistical software, Tradingview is used. The programming language for the bot processes is Pinescript by Tradingview. For hosting the API connection, I use a German hosting provider for the highest processing speed between the servers of Tradingview, the hosting provider, and the exchanges.

Damian Hunziker, 14. 11. 2022 – 16. 4. 2024