Since I warned people to de-risk on 6th December, I have not added any new risks and it looks like I'm going to be playing it safe for a while longer. There's just no point trying to chase profits when the same amount of bots makes 2-4 times less than in June-November. Also the risks of getting red bags is pretty obvious and the lack of liquidity in most of the alt coin markets shows hardly any recovery bounces and just slow bleeding before it drops to another level and more slow bleeding.
Below is Solana chart as a comparison, anyone running bots from August to mid November would make amazing profits on most coins due to the nice volatility. Nice "Long" Candles, especially "green" candles and if they were nicely trending upwards. But from Late Nov to present, there's been so many small candles and when there's big moves, it's to the downside for many coins. This is not good for bots as you keep missing the "Take Profit" and the price keeps getting further away from closing. Safety orders start filling until you run out of funds, and it stops DCAing down.
So for Solana things started going really bad from end of December to now. This is what a slow bleeding market looks like. Small candles in the orange rectangles. No big recovery bounce to allow you to take profit even with most settings unless you ran an extreme DCA setting which most wont do because it costs so much per bot and profits are so low. So drop after drop, leaving you with a 60% drop and filling most/all safety orders.
Another Example DOTBUSD with the green area being crazy profitable months and then the red danger areas.
Spend some time and look at the charts for all your own coins, the red bags you have and are they the same?
This is the main reason why I'm reluctant to run bots, because unless you are able to pick great coins or started your bots very late, like mid Jan, you would be stuck with tons of red bags from many coins.
There's only been a few coins that have performed well in this horrible market, but there's no guarantee these coins will still perform well over time, as with the crypto market the market cycles between different coins. E.g. Metaverse/NFT type coins where amazing in Nov, We had a period where MEME coins did well, then DEFI, etc. A few coins have been pretty consistent, but some of the strong coins are starting to look weak too.
ONE was strong selection for bots for months, but that big drop mid Jan 2022 looks a bit nervous.
AVAX looking great still, but starting to look weak from 2nd Jan 2022
So lets do a quick exercise for yourself, I've zoomed into a 1hr chart for the same AVAX Chart so you can see the candles more clearly.
Look at the chart below and see how many safety orders you filled with the current setting you are running, what was the drop %?
How many safety orders would you have filled?
What is the required change of your setting needed (hint look at the table view).
What is your Required change %? Take into account what your take profit % is too.
Did you manage to close the deal in profit and restart the DCA process or did you get stuck with a red bag as it dropped more?
Start understanding all this to fully become more advanced with your settings and if you need any tweaking to them. Watch the DCA coin selection video and table view video if you still need help.
Other coins that did well last month were HNT, ATOM, FTM, LUNA (this doesn't look great recently tho)
So why don't we run ultra safe settings or have a bear market type setting? I will explain this in the next part.