Customised Automated Portfolio

17 Aug 2022
  • Select the exchange you want to link with Botsfolio. Botsfolio will place all trades in your exchange. We support Binance.com, OKX and Coinbase Pro.

  • Then you can add all the coins you want in your portfolio.

  • That is it! Botsfolio bots will then track these coins 24x7 and implement the strategy shared below.

Customised Automated Portfolio

What is the investment strategy?

When we all look back at crypto we think “Oh man I could have been so rich!!”. And during a bull market when the price has already shot up we start investing. Then the markets crash and we cash out, some brave ones keep holding.

To understand crypto bucket strategy we need to understand the fundamental rule of the market:

"Market can’t go up forever nor will it go down forever."

SIP (Systematic Investment Planning) was invented where an investor will keep investing some fixed amount every month and buy the market at market price. This allows you to average out your entry price over the years. The issue with this strategy is that when do you sell? Which stocks/coins do you buy? How much should you allocate in different assets? How do you optimise returns than simply buying & holding.

Botsfolio has re-engineered this basic investment strategy for the crypto markets. Due to the high volatility we can take advantage and automate SIP with optimised features like smart accumulation and smart sell. The idea here is to add investment periodically to your crypto exchange, the bots will automatically buy on big dips and sell on huge rallies. Doing this consistently over the years results in the best possible ROI.

Smart Accumulation & Smart Sell

 
 

Smart Accumulation

This feature enables a user to buy a coin on dips only. In crypto markets we see sudden sell offs which happen quickly, the bots job with this feature is to deploy capital during these dips. Being patient is the game here as we all want quick profit but generating wealth overtime means you need to think long-term.

A basic question to ask yourself is that if a crypto bull/bear cycle is typically 4 years and there is a 30%+ dip once every 6 months then why to deploy all your cash at once? Why not accumulate slowly on dips and then reap the benefits on rallies? In the chart below you can see how much you would have made on each bull cycle with smart accumulation.

After sharp corrections you can see historically how Bitcoin and S&P 500 have returned good profit. Best strategy is to accumulate smartly & periodically for good results. Be invested, stay invested because time is more important than timing!

 

Smart Sell

Converting your investment to cash and deploying it back on dips is one of the best strategies to grow your portfolio overtime. Smart sell enables users to automatically sell their holdings on huge rallies and then uses this cash to buy the same assets back when they dip.

We all know things don’t go up forever so why don’t we sell some on huge rallies and then buy them back on dips? Typically crypto has a good 50% to 100% rally once a year followed by a dip. Smart sell was engineered to take advantage of this. Investment can only be realised when you sell, else it's just a number.

 

One time investment vs Adding to your investment periodically

One of the biggest mistakes most retail investors make is that they deploy all their investment at once and mostly during a bull market. By looking at the chart given below you can see how deploying investment periodically can yield bigger returns over a one time investment.

We called it before!!!! You can read an article written by our founder on technical analysis of BTC breaking out to $25,000 when it was at $9k in 2020 before the BTC bull run began here.