Pionex - BTC Growth Bot - The satoshi printer
Before we get into the details, I am normally not a fan of bots that trade for you as they in my experience do not work in the long run.
I feel different about the grid bots as they follow something very fundamental.
What is a grid bot?
A grid bot divides the chart in grids as the name suggests. Below the current price and above the current price.
If you start a long bot, it start to buy some coin directly and than buys more when the price falls and sells when the prices rises and moves the grid levels dynamically within a certain range. A short bot does the same in the direct opposite fashion.
Below you can see some orders for a grid bot and what action it would perform. This is from Pionex on an active running bot.
So it is basically an arbitrage bot.
BTC Growth Bot
The BTC growth bot as the name suggests is to increase your BTC holdings.
It trades the ETH/BTC Futures pair. You fund the bot with BTC.
So it trades the relative strength of the pair and increases when ETH rises stronger than BTC and falls otherwise. As they move together more or less you trade the volatility in between. Another cool thing about this pair is that the funding rate so far has always been 0. So no paying any holding fees for the long position.
This is a special kind of bot in the wording of Pionex, a Moon Bot. These are special in that regard as you do not pay any trading fees but instead pay 20% on the profit you extract, when you extract.
Risk?
As this is a leveraged bot the main risk comes from liquidation. Personally I would not touch anything above a leverage of 5.
The other one is that ETH and BTC do not move together anymore or close enough at least. Stronger ETH is good, stronger BTC is not soo good.
I personally do care not much about the second part, I am mainly interested in the volatility and to get the arbitrage income.
Income?
I am now only talking about extraction of the grid profit, meaning only what arbitrage profit was generated.
I am able to extract around 1 - 1.5% every 7 days for a 5x leverage bot. It always depends a bit on how much movement there was in the week.
So for me this means, on my 0.00511 BTC I earn an interest of 1 - 1.5% a week. Nice!
You can see above one of the bots that I recently started. It is a 5x and the current grid profit is 6474 satoshi or 1.26%. The last time I extracted was around 6 days ago and I extract tomorrow. The grid profit on extraction will reset to 0.
It made 1206 arbitrage trades since inception and each makes around 10 satoshi.
The total position is also quite up (16%) but I do not plan on closing the bot and rather collect each week. The position is up as ETH rose more relative to BTC. I plan to keep that one running the whole year, lets see how this goes.
This is no financial advice and only what I am currently doing. Always do your own research!
Below you can find my video about the bot!
Hope you found it interesting.
How do you increase your BTC while holding?
