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Testing out Crypto Robot on Pionex

Crypto trading bots have gained a lot of attention recently. One of the reasons for this is that there is the notion that a perfectly programmed robot doing your trading means you can go on with your day, sleep easy at night and wake up with profits. However, is this really the case? I tried a crypto trading bot on Pionex and my results were mixed. All of the screen shots are of past results. 

Background:

Of course, in today’s crypto wild wild west just about everything gets shilled to you on Youtube videos. While on one hand it is good for staying up to date and improving your knowledge, sometimes it can be downright obvious. However, this particular youtuber caught my eye by initially promoting a rebalancing bot. I had always heard about people who automated crypto bots and being someone who has experience (and interest) in automation, I figure why not give it a try? 

Breakdown:

Trading Bonus code: QBWKcHy6

1 hour in and I was up 3.18%

Pionex boasts a transaction fee of 0.05% or in other words, (.0005), but that fee normally will add up to 0.1% (.001) as buying and selling both incur this fee. You may also notice their withdraw fees seem to be quite high as appose to a standard network fee. Solana's network fees are usually around $0.00025. As of today .01 SOL = $2.31. shows 9,240x difference. This may seem shocking, but given I haven't provided any perspective, it's not as crazy as you think.

Coinbase charges 0.50% per trade, 3.99% for credit card purchases, and 1.49% for Coinbase wallet or bank account purchases. If you buy $100 of SOL with your credit card, you'd pay about 4.49% ($4.49) in fees compared to 0.1% + 0.1 SOL [as of Nov 13th ($2.41)].

Ther are various kinds of robots that you can select on depending on your trading needs, but for my example, I went with the infinity grade. My main attraction from this was to make profits during volatile price action.

Pionex does have KYC, but it is not strictly enforced to the point where trading is impossible if not done. Quite the contrary,  as your 24 hour withdraw limit is still $15,000 USD. However, verified members can withdraw up to $300,000 USD in with 24 hours.

 

You can fund your account by transferring coins to your given address. I personally, did not use a CC# or bank account.

Here's my process below:

  1. Convert $1000 USD to USDT on Coinbase.
  2. Sent to Pionex Address
  3.  Waiting for funds to arrive, then got started.

4 Hours later...

When I checked a few hours later I saw that my initial invested had already seen an 11.26% return. Beforehand, I unlocked my phone, logged in to pionex not expecting much, but seeing the gains now had me really thinking…”What if I had invested 10x or more?”. Either way, I figured I must have got in at a good time. 11% gains within 4 hours is just insane to be honest. I didn’t expect much more. At this point, I told myself it’s time to take my profits and get out. ‘DO. NOT. BE. GREEDY…’ is what I told myself, but what I actually did was quite the opposite. Given this was an “experiment”, I wanted to see if we could go a bit further or maybe it was just a fluke.

11 Hours in and...Come on now...

So it was getting late and at about 11:30pm, I figured the real test would finally begin. Can I sleep and have this robot making me money? As the famous Warren Buffet quote goes, “If you don’t learn how to make money while you sleep, you will work until you die”. Well, to my further surprise, when I woke up, I was now up 19.14% and it had not even been a full 24 hours yet. Literally, within half a day I up $153 in profits. 

It wasn't all peaches and cream though

As you can see I got a bit bullheaded and last track of my own internal fear/greed index. In total, I made about $204 profit, While losing about $87. All in all I got out while I was on top, but I just wanted to show you the whole picture. Yes the robot does remove emotion, but it is our job to program it. Yes, the robot trades objectively, but we still have the power to panic sell and turn off the bot before it even does anything. I had a few more gos after my big come up and in the end, it decided I am better at HODLing and blogging.

Reflections

  1. I believe my early success was getting in right after a big dip followed buy up and down price action.
  2. I chose a coin that robot trading strategy that suited sideways & bullish price action.
  3. You still can panic sell,  as some of my trades clearly look like that was the case. I decided to either get out of some bots or I set a very tight stop loss.