At Napbots, we constantly monitor our crypto trading strategies to see how they are doing on the market. And because transparency is key, we share the performance analysis for our strategies every three months. Read these articles to better understand the broader crypto context and make sense of the performances you see in your dashboard. 

Let’s start with Wise SOL, covering the period from March 6 to June 6.

SOL trading strategy


Meet Wise SOL: Long-Term Algorithmic Trading Bot 

Wise SOL is a long-term strategy that follows the uptrend on SOL, the native cryptocurrency of  the Solana blockchain. This means that when the price of the asset goes up for a certain period of time, Wise SOL takes long positions (buys), in order to capture positive trends on SOL. In periods of downtrend, the bot switches to neutral.

Wise SOL combines 3 strategies: two are medium-term (weekly and daily), and one is short-term. The medium-term strategies are trend-following strategies. They scan the market in real-time and trigger a buy signal when the price rises above a trend indicator. The short-term strategy is contrarian. It buys SOL when its price is oversold, i.e. when the asset has been trading at lower price levels and there is potential for its value to rise.

Indicators such as moving average and slope are used to determine the direction of the price trend. The bot makes decisions based on these daily and weekly
signals.

Market Analysis

The entire crypto market has suffered from the crash of the LUNA ecosystem and its associated tokens. SOL is no exception: over the period from March 6 to June 6, it exhibited a negative performance of -48,5%.

On the other hand, the value of SOL spiked in March after news of the integration of SOL NFT in OpenSea, a leading NFT marketplace.

Wise SOL performance: Positive In a Turbulent Market

Overall, Wise SOL has a positive return of 24.14% for this period (March 6 – June 6). 

The strategy took part in the market upswing from mid March to April 5, and unwound its positions (sold) between April 4 and April 15. 

From April 15 to May 5, the market continued on a downside trend without major events. Then, in the week leading up to May 12, the entire crypto market went down by 35%, following Luna’s downfall. Finally, from May 12 to June 6, bitcoin prices stabilized in the  $27,000 – $32,000 range.  

By combining all three strategies that compose it, Sol WISE managed to stabilize return at +20% between April 15 and June 6.

Conclusion

Remember that the performance of SOL on the period is -48.5%, while the performance of Wise SOL is 24,14%. Thanks to its live market analysis and correct trend prediction,  the strategy outperformed SOL by 72.6%.

Always keep in mind that past performance is not necessarily a guide to future performance and that your capital is always at risk.


Disclaimer:

Investing involves risk, including the possible loss of all the money you invest. In particular, crypto-assets are a highly volatile and speculative asset class. Napbots is only suitable for traders who are willing to bear the risk of loss and experience sharp drawdowns. Past performance is not necessarily a guide to future performance. 

The purpose of this material is to provide objective, educational and interesting commentary and analysis on developments in the crypto-assets sector. Nothing in this material should be interpreted as constituting an offer of (or any solicitation in connection with) any investment products or services by any member of the CoinShares Group where it may be illegal to do so. Access to any investment products or services of the CoinShares Group is in all cases subject to the applicable laws and regulations relating thereto.