How an Algorithm Traded $100,000 of Bitcoin

So most people believe that trading requires staring at charts all day and constantly trying to predict the next move. But what you're about to see in this video is a $100,000 account traded by a fully structured algorithm. And over this period it generated $21,098 in profit. That's over a 21% return. And during that same stretch, the passive buy and hold position had a 44% decline, approximately negative $44,000. Same market, same volatility, December, different structure. And I want to walk through the exact trades that let that happen. So let's dive into it now. Firstly, the asset that we're trading is Bitcoin. And Bitcoin had some recent market crashes, especially from October. We're going to see those in this replay. Now what's going on here is the algorithm is going to react to the predefined conditions that we've set. So across this window there's going to be around 29 trades in execution. As you can see, that red line is the trend. We're entering that first trade there. Now again, this is all done automatically and can be connected directly to your exchange. What you're seeing is these next orders that are being made not because of headlines, not because of opinion, not because of emotion, because they're part of the rule based system. And as you can see there, we've already taken a profit, vented another trade, taken another profit as well. So I'm just going to move the screen over so we can follow it a little bit. These are all exits that are rule based, all entries as well. So what you're seeing on this chart is decision logic that was written in advance and it's all being executed automatically here. The orange lines there is the break even, the green there is the take profit. So let's keep watching what's going on here. We're seeing some defensive scaling as the price drops, as you know, from October. There's some huge, huge market crashes here. And we're just seeing exactly how this defensive sailing is picking it up. And as you can see, we took another profit there as well. And, and we've now reset. So the distribution of trades and gains meaningfully outweighed any of the losses of the smaller positions as we move down slowly so we can have a look at some of the data towards the end of this replay as well. The market's being a little bit choppy now and as you can see, we're entering and taking profit. Entering and take profit again following the exact engineering rules that we set out from the start. And as you can see, I've applied the algorithm here. That's the algorithm that I'm going to actually using. This is all going through in real time. So across these 29 trades, again we're not seeing hundreds of rapid fire executions. What we're seeing is structured participation during taking advantage of the defined conditions that we wanted to take advantage of. So none of this is perfection, but it is something that gives you statistical asymmetry, that's what we call it, especially when it's consistent and over time. Now these drawdowns, of course they occur. You have to always experience drawdowns. Drawdowns are part of the game. As you can see here. We're waiting for this trend. I'm waiting for an entry and we'll see. Look at that. Price at the moment was 89. Again, the market's going down, down. We're running this on a two hour timeframe which is giving us a really good entry. And now we're doing some defensive scaling here. So let's address drawdown because that's what you're seeing right now. You know, any kind of trading performance really has to include it. But as you can see there, we just took a profit there on that small rally there. So there is going to be meaningful equity fluctuation when you're trading like this. But it's entirely consistent, especially when you're trading with Bitcoin, because Bitcoin is structurally volatile. So the system's going to experience those drawdowns during contraction phases and that is completely normal. And again, we're just going to reset when we can. So we took the profit there and we reset. So that's basically the end of the cycle because we're up to where we are today. So we've gone from October all the way till 22nd February and have a look at the strategy report. So here's that drawdown that we're talking about. Again, that's absolutely fine. Because the exposure remained controlled, position sizing didn't expand emotionally, the risk parameters did not change mid cycle and all the exits remained intact. So the framework absorbed volatility and it just continued executing like you saw. So again, by the end of this period, despite the swings, the, the account finished up, as you can see, with a 21% profit while there was more than a 44% drawdown. As you can see, if we come down here, the buy and hold, actually, where's the buy and hold? The buy and hold there, minus 44%. So as you can see Volatility doesn't disappear. But what we have to do is we have to structure our trading and our algorithm around it. We need to absorb it. This was some of the worst conditions that we've seen in Bitcoin recently. And our algorithm, which works on lots of different assets. I'm going to make more videos on the different assets we can trade. It's performed extremely well. So I want to go back and just look at what we're seeing on the screen now that this is all paused because I can kind of make it make sense to you. So each one of the arrows on this chart, they represent a conditional action. The first one, which is first order there, or you can see this order here, these are called base positions and they're basically entered when a certain criteria aligns. Now if the, if it pays off and the trend goes up, we take a profit, which is great. If it goes down, as we can see here, the entry is challenged, then we're using defensive scaling, which is all applied according to the predefined logic. So there is no hesitation and there is no reinterpretation or all the conditions are being followed based on the engineering. We set out the beginning. So this removes all kinds of guessworks. And this is why automation really matters. Because as you saw these trades happening, a lot of these local bottoms are being executed. They're happening 4 o' clock in the morning, 2 o' clock in the morning. You really need to have automation right now. Let's just think if you were just simply buying and holding. So again, if you were buying and holding, your drawdown would have exceeded 44%. That means your $100,000 position would have been down $55,000. Now that does require significant psychological resilience. And trading in this way really does allow you to profit whether the market is going down or up, because it's simply engaging with the structure that's present. Right. And it doesn't have a directional bias. We're able to actually make money no matter what the price is doing. So what's unique as well, as you can see, we're actually doing this with a long only strategy. We don't like to short this particular market, at least I don't, especially when you're entering positions of this size. As you see some of these positions. 1 bitcoin 2 bitcoin. So during a volatile period, we simply want to respect every entry. We want to understand where we're going to be trading to where this is going to stop. We use the power law support as a Reference we work directly with Giovanni Santa Stasi, he works on our risk management and we simply understand what's going on at every moment of this trade. And as you can see right now we've re entered at 66,000, price is extremely low. Next take profit is at 69. So we're able to actually walk the price all the way down. Now, just to give you an idea of our algorithm, you can see we've got loads and loads of different inputs that can be controlled by the user. This is kind of like a Swiss army knife. It helps you make all the adjustments that you're going to need to trade this and other markets. There's lots you can do with that. And if you book a call with my team, we can explain to you how it all works in depth. Now, an algorithm is particularly good at trading in this way because it executes exactly as designed, and that consistency allows the mathematical edge, and in this case was actually a profit factor of 1.824 to express itself over time. So without automation, that edge, it often collapses under human pressure. That's just the reality. So if you're watching this and thinking you want structured exposure to trading, Bitcoin or other assets, but you don't want to sit there and you don't want to be entering all these trades by yourself, then that's precisely why we've built this algorithm. You know, this is not a signal service, this is not discretionary trading. It's actually a fully coded framework that automates all the entries, all the defensive scaling, all the exits, and it's all based on predefined logic. So from this example, we saw $100,000 generate $21,000, while the buy and hold was down $44,000. And this was fully executed by the system and connects with pretty much every single major exchange. So if you want to have access to this algorithm itself and you want to learn more about it, if you want to see more live testing and performance, go ahead and book a call. We provide access to individuals who want disciplined and systematic exposure to trading without any of the emotional execution. All markets are volatile. The question is whether you want to navigate the volatility reactively or structurally. So if you prefer structure, then go ahead in the description and click on one of the links and my team will be glad to take you through and show you exactly how the whole system works.