Market Making vs HODL. Short Profitability Review. Part 2.

in #dexbot5 years ago

This post is an update to Market Making vs HODL. Short Profitability Review. Another 2 months have passed. While the overall market was bearish, price volatility was rather small and prices remained within the set price range. After 4 months the exchange rate almost went back to the initial value. Swings around the starting rate value are an ideal environment for neutral staggered orders strategy. Two months ago price almost escape boundaries and bot was close to stopping trading.

mm.png

At 5.3 BTS per STEEM portfolio value increased when calculated in BTS by ~10% from the initial value 4 months ago, while value in STEEM is quite the same as 2 months ago, but 30% higher than in June.

For comparison, the below table shows the keep-and-hold strategy outcome.

hodl.png

Conclusion

In relatively low market volatility conditions, neutral staggered orders strategy is more profitable than simple buy and hold strategy. In addition, running market maker provides liquidity for causal STEEM sellers and buyers.

Sort:  

Hi @hotbit!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 2.149 which ranks you at #23975 across all Steem accounts.
Your rank has not changed in the last three days.

In our last Algorithmic Curation Round, consisting of 99 contributions, your post is ranked at #91.

Evaluation of your UA score:
  • Only a few people are following you, try to convince more people with good work.
  • Your contribution has not gone unnoticed, keep up the good work!
  • Try to work on user engagement: the more people that interact with you via the comments, the higher your UA score!

Feel free to join our @steem-ua Discord server

Thank you so much for participating in the Partiko Delegation Plan Round 1! We really appreciate your support! As part of the delegation benefits, we just gave you a 3.00% upvote! Together, let’s change the world!

Coin Marketplace

STEEM 0.30
TRX 0.12
JST 0.032
BTC 59274.49
ETH 2983.07
USDT 1.00
SBD 3.75