Buy low and sell high is one of the most well-known phrases in the investment world. An investor can gain consistent profits by doing nothing else than buying at the lowest point of the market and later selling at the peak every few months (if an asset is trending up).

And while this is a good marketing catchphrase, the reality is that the implementation is not easy. So hard that 95% of traders that try to time the market’s extremums end up losing money. But there is another way.

The Solution

A winning buy low, sell high stands out in two areas:

• Accuracy in predicting the local bottom and top
• The actual execution of the trade in real-time

The cryptocurrency market is unique in many trades, but one of them is that it runs 24/7/365, unlike traditional markets. That gives investors more opportunities and a chance to miss them, as no one can stay in front of the monitor for 15+ hours daily, let alone non-stop.

The solution is automation. A crypto trading bot that can monitor the prices day and night and execute trades when there is a possibility.

Many software tools provide the benefits of 24/7 monitoring, but what differentiates the great from the good bots is their accuracy in predicting price movement and finding local bottoms/tops.

AI Trading Bot Accuracy

Automations are not built the same. The constantly evolving crypto market requires an adapting strategy to tame it, and our research has conducted that AI trading bots work better in the long run. Both in outperforming the market and beating its trading bots competitors.

In the following study, we will look at one specific AI from One Button Capital that stood out in the last two years — Performer v2.

We will dive deep into the AI trading bot’s accuracy in spotting local bottoms and tops and how well it timed them.

Case Study #1: Performer v2 vs. BTC

The first market pair that we will look at is BTC: USDT. Bitcoin is the largest digital asset and one of the favorite markets for the Performer v2 strategy.

Dec 2021 — Feb 2022

Performer v2 trading history against BTC: USDT between Dec 2021 and Feb 2022.

The AI started scanning the market on Nov 24, 2022. After carefully folding in the first several days (avoiding the local top trap), it started trading at a nice profit in the consolidating market.

Eventually, Bitcoin found a local bottom at $33,066 on Jan 24, 2022. The AI bought at the lowest point with precision.

Mar 2022 — May 2022

Performer v2 trading history against BTC: USDT between Mar 2022 and May 2022.

Between March and May 2022, Bitcoin tried to find a top at around the $48,200 resistance level. Initially, the AI tried to buy at that price, but it quickly realized that this would be the market’s extremum and SOLD.

Jun 2022 — Aug 2022

Performer v2 trading history against BTC: USDT between Jun 2022 and Aug 2022.

Finally, June sent BTC to new extremes, dumping the leading cryptocurrency to $17,599 on Jun 19, 2022. Performer v2 placed a BUY order near the dip. Contrary to ETH, there was no surging in July and August. The actual top was back at the end of May, when the AI SOLD its current position at around $31,753 on May 31, 2022.

9-Months Overall

Bitcoin was the most difficult challenge for Performer v2 (BTC). The AI had no trouble locating the three market bottoms or the initial market crash. The only tricky instance occurred on April 1 (possibly an AI joke), when the bot bought slightly before selling near the 3-month high (in reverse it would be a mistake). Overall, the trading robot was successful with 100% accuracy.

Case Study #2: Performer v2 vs. Ethereum

The next market pair that we will look at is ETH: USDT. Ethereum is the second largest digital asset and one of the favorite markets for the Performer v2 strategy.

Dec 2021 — Feb 2022
We will divide the time frames by 3 months or around 90 days. That is a long enough period to draw meaningful conclusions if a trading bot successfully finds the extremums in price.

Performer v2 trading history against ETH: USDT between Dec 2021 and Feb 2022.

The Performer v2 strategy began trading on Dec 3, 2021 — right before the start of a massive sell-off. Since the initial capital of the bot is allocated into stablecoins, the only possible first trade is a BUY order, and doing that here would have been a big blunder. The AI did not fall for it.

The bot successfully predicted that this would be the highest point of the market for some time ahead and patiently waited. After some consolidation, ETH started dropping again, eventually reaching the lowest point of $2,160 on Jan 24, 2022. The bot bought at the perfect time on the correct candlestick.

Mar 2022 — May 2022

Performer v2 trading history against ETH: USDT between Mar 2022 and May 2022.

Further, in the year, there was an increase in Ethereum’s price. The asset peaked at $3,580, and Performer v2 was successful again in selling at the market’s top within a few market scans*. Afterward, the Crypto Domino Effect began with the downfall of Terra’s stablecoin UST. In the Mar-May analysis period, the market found a bottom at $1,798, and our AI perfectly scalped the opportunity to BUY.

(*) The Performer v2 strategy scans the market once every 4 hours or four candlesticks on the hourly graphs in this article.

Jun 2022 — Aug 2022

Performer v2 trading history against ETH: USDT between Jun 2022 and Aug 2022.

Moving into Jun 2022, we can see that the trouble for Ether was not quite over. The asset continued to fall, reaching an unprecedented (for recent months) bottom at $880. Performer v2 placed a BUY order on the absolute minimum!

July came as big relief to investors, as the whole crypto market stabilized and started trading upward. Our AI managed to buy at several local bottoms and sell on local tops. When the market reached its 3-month peak at $2,029 on Aug 14, Performer v2 placed a SELL order.

9-Months Overall

In total, the Performer v2 AI scalped all three 3-months tops (selling at two, avoiding a trade in one) and bottoms (buying at all three dips). This gives the bot 100% accuracy against Ethereum in detecting the local extremums.

Case Study #3: Performer v2 vs. BNB

The following trading pair we will analyze is BNB: USDT. The Binance coin is the 5th largest cryptocurrency by market cap and is one of the most successfully traded markets for several of our bots.

Dec 2021 — Feb 2022

Performer v2 trading history against BNB: USDT between Dec 2021 and Feb 2022.

This Performer v2 bot began scanning the market on Nov 24, 2021. Similarly to the Ethereum case study, BNB started dropping shortly after the AI went live, so the best decision was to “fold” and wait for a good opportunity.

After accurately buying at a few local minimums through its first 3-months journey, the P2 bot found the lowest point at $324 on Feb 24, 2022.

Mar 2022 — May 2022

Performer v2 trading history against BNB: USDT between Mar 2022 and May 2022.

Between March and April, BNB saw steady price growth with not much extreme movement. The highest point of the market was at $453 on Apr 2, 2022, and Performer v2 sold at the highest candlestick.

Afterward, the price of BNB started to fall, eventually reaching the lowest point in this 3-months cycle at $217 on May 12, 2022. The AI bought within one market scan time at the dip.

Jun 2022 — Aug 2022

Performer v2 trading history against BNB: USDT between Jun 2022 and Aug 2022.

In June, the prices started to fall again, reaching a new low at $182 on Jun 18, 2022. The AI scalped the dip quite precisely.

After that, the cryptocurrency market started to recover, and the BNB: USDT pair reached a local top at $335 on Aug 10, 2022. Performer v2 did indeed place a SELL order there, but it was not 100% certain about where the price would head out next.

9-Months Overall

For BNB, Performer v2 was successful with 100% accuracy over nine months. The bot bought at all three 3-month market bottoms and sold on the two peaks that offered the opportunity.