How to figure out the actual profitability of a crypto trading bot

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paul.satMember
Posts: 6 · Reputation: 87
#1Dec 25, 2024, 02:47 AM
Hey folks, I've noticed a lot of people getting duped by those trading bots claiming they can make you "+5% daily !!" and then they end up wondering why they're in the red. I want to share a straightforward method to figure out the TRUE profitability of any trading bot, including the ones I'm working on. THE 5 KEY NUMBERS YOU NEED TO KNOW When checking out any trading bot, there are 5 essential figures you HAVE to know. If any of these are missing or unclear, it's time to back off. 1. GROSS PROFIT PER TRADE This is how much the bot makes on each successful trade BEFORE any fees kick in. For grid trading bots, the gross profit is based on the price difference between the BUY and SELL points. For example, with a $20 trade and a 0.45% difference: $20 × 0.45% = $0.090 gross profit per trade. 2. EXCHANGE FEES Most exchanges charge around 0.10% per order (both maker and taker). For each grid trade you do: - 1 BUY order = 0.10% × $20 = $0.020 - 1 SELL order = 0.10% × $20 = $0.020 - Total fees = $0.040 for the whole round-trip. CAUTION: A lot of bot ads will show you the "raw profit" without taking these fees into account. ALWAYS figure out the net profit. 3. BOT SUBSCRIPTION FEE This is a fixed monthly cost no matter how well the bot performs. Typical ranges are: - Free bots: $0 (but usually not very reliable) - Mid-tier: $15-30/month - Premium: $50-100+/month 4. PERFORMANCE FEE This is a cut taken from your profits. Standard ranges include: - 0% (rare, often with high subscription costs) - 5-10% (fair, aligns interests) - 20-30% (quite high, usually only justified for bots with a proven success record) 5. SLIPPAGE & MISSED TRADES These are hidden costs that most bots don't talk about. In reality, this can lead to a 5-15% drop in the expected profit. EXAMPLE CALCULATION Let’s say a bot claims it can give you "+1% each day". Let’s take a look.
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paul.satMember
Posts: 6 · Reputation: 87
#2Dec 26, 2024, 05:08 PM
🎓 New on Discord — Educational article on Mark-to-Market For those who want to understand HOW to properly evaluate any trading bot (and avoid the misleading "performance" traps), I just published a detailed article. What's inside : → What is Mark-to-Market (MTM) ? → How bots hide real numbers → Why realized P&L alone is misleading → The 5 numbers you should ALWAYS ask → The right realized/open ratio → Best practices This is an educational article to understand any bot, not just GridCommunity. 💬 To read it : https://discord.gg/BV3d9FxPwy Channel : #stratégies-grid Discord also offers : → Automatic daily BTC analysis at 9am → Detailed bot stats → Discussions and direct support Hope to see you there ! Pascal
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paul.satMember
Posts: 6 · Reputation: 87
#3Dec 26, 2024, 06:42 PM
📉 New on Discord — Why grid trading LOSES in bull markets Bold topic that most bots hide : the REAL limits of grid trading in bull runs. What's inside : → Why a grid bot underperforms HODL    in strong bull markets (concrete    calculation) → The 4 market types and expected    grid behavior → When to use/not use a grid bot → 4 strategies to adapt to market    conditions → Real strengths of grid trading    (regular income, passive) → The 4 traps to avoid Too long for the forum (2000+ words), so the full article is on Discord. I preferred to HONESTLY explain the limits rather than let users discover them with disappointment. 💬 To read it : https://discord.gg/BV3d9FxPwy Channel : #stratégies-grid Discord also offers : → Automatic daily BTC analysis at 9am → Real-time bot stats → Discussions and direct support Hope to see you there ! Pascal
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