Monthly Insights - March 2023 Performance Recap
Welcome to our first edition (March 2023) of our monthly trading bot performance recap newsletter! As always, we are excited to share the latest insights, news, and updates about our trading bots and the markets they operate in. This month's issue includes:
- Trading Bot Performance Highlights
- Market Analysis & Trends
- Bot of the Month
- Upcoming Enhancements & Updates
- Q&A and Community Insights
Trading Bot Performance Highlights
Overall March was a solid month for our trading bot lineup. Cinnamon Toast was the top performer with Short Bread and Cosmic Cupcake coming in slightly behind. But 3 of our 4 strategies had a pretty profitable month. French Toast ended the month down but closed the month with back to back winning trades after we deployed an update to the strategy.
Below a snapshot of the results for each bot, not including leverage used:
- Total ROI: 2.47%
- Win Rate: 63.75%
- Number of Trades: 58
For more detailed performance metrics, check out our Performance Dashboard.
Market Analysis & Trends
In this section, we'll provide an overview of the market conditions and trends that influenced our trading bots' performance this month. Key topics include:
- Early March: Low Volatility to High Volatility
- Mid/Late March: Range/Choppy Conditions
Early March: Low Volatility to High Volatility:
Beginning of March continued the common theme we saw throughout the month of February which was big price swings and high volatility within the market. But to kick off the first few days of March we saw the market not do much of anything and trade sideways before the high volatility came back with a vengeance. This first half of the month period was somewhat of a rough stretch for our bots as our strategies tend to be scalp or day trades meaning they are in and out of trades rather quickly. When market has these highly volatile swings in price action it can cause our trades to get stopped out rather quickly if market direction flips while we are in an existing trade. This happened a few times in early March to several of our strategies causing some losses to be taken.
You can see from the chart above where ETH was not doing much of anything and then we had a big dump down to $1300s and a immediate move back up to $1700+. These high volatile ranges can be challenging to trade especially in this scenario when the market has major volatility in both directions.
Mid/Late March: Range/Choppy Conditions
Conditions changed about midway through March and we saw the markets calm down a bit and trade more sideways but still have some good range to it, not as tight as what we saw at the beginning of March. These are the conditions our bots really shine in. When we get sideways market movement our bots really excel at opening longs near the lows and opening shorts near the highs. We saw some really good performance over the final two weeks of March with our bots taking 41 trades and having 33 wins and 8 losses.
You can see from the chart above how the market was more range bound and the movement was much tighter than what we saw in early March. ETH pretty much ranged from $1720s to $1830s throughout the back half of March. You can see below how much our bots benefitted from this shift in market conditions:
From March 14th - March 31st:
Cinnamon Toast: +50.08% (5x Leverage)
Short Bread: +22.19% (5x Leverage)
Cosmic Cupcake: +11.52% (3x Leverage)
French Toast: -1.74% (3x Leverage)
Bot of the Month
Each month, we spotlight a trading bot that has shown exceptional performance or potential. This month's featured bot is:
- Strategy: Cinnamon Toast is designed to capitalize on intraday pullbacks in Ethereum, leveraging its advanced algorithm to optimize entry and exit points for maximized returns.
- ROI: 4.78% (1x leverage) 22.28% (5x leverage)
- Win Rate: 66%
Cinnamon Toast saw some great performance throughout the month of March after a rough month of February. Cinnamon Toast has been our flagship strategy since we launched back in August 2022 and was our top performing strategy in the month of March. We released an update for Cinnamon Toast on March 9th 2023, in which we implemented a custom volatility index which helps track volatility within the market and enter trades more frequently during higher volatility and less frequently during lower volatility. Since the update Cinnamon Toast is up a whopping 32% on 5x leverage over the last 3 weeks.
Learn more about Cinnamon Toast and how to add it to your portfolio here.
Upcoming Enhancements & Updates
Our team is continuously working on improvements and updates to enhance your trading experience. Here's what to expect in the coming weeks:
- Strategy Optimizer: We have been working on this for a long while and it should be ready in a few weeks. This is a backend tool for our team to use that helps us optimize our strategies quicker and more efficiently. We are able to run our strategies through thousands of iterations quickly and receive the data in a way that shows optimal performance for a strategy while taking into account, overfitting strategies, net profit, percent profitability, max drawdown, avg % gain per trade, long side profit potential vs. short side profit potential and much more. This will allow us to make sure the versions of the strategies we share publicly are the most finely tuned and are running at peak performance at all times. This will be a version 1 roll out for our team, and we plan to bolster its skillset and data analytics backend over the next several months.
- Consensus 2023: Our BreadBytes team will be at one of the largest crypto conventions in the world which is called Consensus and is hosted in our hometown of Austin, TX. This is our first conference and we are very excited to attend with our Astrabit partners. We have been working hard on our booth design, setup, and overall planning of the event and can’t wait to meet some of you there! We also are doing an evening private event after Consensus on Wednesday April 26th if you want to come grab a drink and hang with us, you can RSVP to that event here: https://www.eventbrite.com/e/breadbytes-x-astrabit-consensus-event-tickets-598555203727
- Website Overhaul: We like our current website and have gotten great feedback on it from our community, however we wanted to make things more streamlined for the user. There was a lot of extra stuff, unnecessary stuff or things that could be showcased in better places, so we have been working the last couple months to refresh our site a bit. It will still have a similar feel to our old site but it will be easier to read, understand and get the information you want quicker. We’ll also be rolling out our Trading Dashboard which has been in beta for a while now, it will be available to everyone for FREE once our new site rolls out the first week of April.
- Additional Alpha Strategies: One of our consistent goals with BreadBytes is to make sure we are bringing value to our users. We do this in a multitude of ways currently, through our trading bots, educational content, trading dashboard for results transparency, trade alerts, engagement via chat, and lastly Alpha Strategies. Our alpha strategies are trading strategies that we are testing but may not be quite ready for primetime, so we share the bot alerts via our Discord for FREE and allow users to manually trade the bot anytime they want to. We have another 1-2 Alpha Strategies we plan to unveil this month, that we hope to see some good performance with throughout the month of April.
Stay tuned for more updates via our Discord.
Q&A and Community Insights
In this section, we'll answer some frequently asked questions from our community and share valuable insights from fellow users:
- Q: Why do some of the strategies not take trades on Sundays?
A: Two of our strategies take trades on Sundays and two of our strategies do not. The two strategies that don’t take trades on Sundays are Cinnamon Toast and Cosmic Cupcake. The reason these two strategies don’t take trades on Sundays is because we do thorough data analytic deep dives on each of our strategies trade history and one of the aspects of that is analyzing each day of the week and see how performance reflects on those days. Both Cinnamon Toast and Cosmic Cupcake from the data we collected performed quite poorly on Sundays only, it was actually the only day of the week from August 1, 2022 till now that was negative from a performance standpoint. Removing those potential trade losses gives our users a better chance and consistently being profitable.
- Q: If I am interested in subscribing to a strategy which one do you recommend?
A: This is a tough question to answer as all of our strategies do something a bit different. Our flagship strategy and the one with the most data behind it is Cinnamon Toast which trades ETH, we also have another strategy on ETH called Short Bread which captures trades long and short within the market and has performed very well over the last two months since we updated the parameters. Cosmic Cupcake is our newest strategy which trades ATOM, this strategy is a bit more volatile and has wider take profit and stop loss parameters. If you are comfortable with higher volatility and price action this may be for you. Lastly we have our French Toast strategy which trades BTC, this strategy has recently gone through a pretty big overhaul and has hit its first 2 trades since the update.
If you have any questions or suggestions, feel free to reach out to our support team or join our Discord.
That's it for this month's recap! We hope you found the information valuable and look forward to bringing you even more insights in the next edition.