How to Read the Bitsgap Sum Value + Calculate True Profit & Loss… Most People Get it Wrong
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Bitsgap figures can be very misleading if you don’t know what you’re looking for and how to calculate things. Most people overestimate their profits because of this confusion. Here is how to read the Bitsgap figures behind your crypto trading bots…
The following is an edited version of the video transcript…
THE BITSGAP SUM VALUE CALCULATIONS TO LOOK FOR
A lot of people get really confused with the numbers and figures that Bitsgap presents, so I’m just wanting to explain as much as I can, and as much as I am aware of and understand myself.
I’ve just opened up a text document here on the image below to show you the things to look at, the things Dan Hollings tells us to keep an eye on, and what to ignore as well.
First and foremost we want to look at the sum value of all of the bots, found on the line under the 4 header tabes of Spot Bots, Future Bots, Spot History, and Futures History.
So I’ve written down the $10,307.
Then when you subtract the total P&L of $4,288, you’ve got $6,019.
This particular Bitsgap account only has two bots. It’s actually my mom’s account. She’s not really into doing a whole lot of crypto investing. She’s just happy to have a little bit sitting out on the side. And as far as she’s concerned, if it makes a little bit of money over time, it’ll just go to the grandkids.
It’s just something she’s happy to play with and keep an eye on, and just see what happens. She’s not one of these “all-in” people like Nat and me, but it’s really great actually to be able to use a small account like this, and we can learn a lot from it when there are just two bots… You can easily look at the Bitsgap numbers better.
What I had to do was go in and look at each bot and find out what the initial funds were, and the way that we do that is by clicking on the little graph icon, and that will pull up this Bitsgap screen here…
The few things to look at here are pretty much just what’s in the middle where it says initial funds.
So one way to use this figure is just to see what you initially put in. So in this case, this bot started with $2,995 equivalent, and it can only be equivalent because they were both volatile cryptocurrencies as opposed to it being a stablecoin, which, BTW if you really want to keep an eye on your figures, just trade pairs that have a stablecoin on the right.
So that’s where I got this figure from. I opened up the second one just by clicking on the little graph symbol on the second bot. And this one started with $3024. Now it’s got a minus figure there.
Let me just explain that just before we move on. The red figure there being 4% down is basically saying that instead of running a bot, if this particular exchange had only kept 8 SOL, and 0.04 BTC, then at this point in time, with this current market, the value is actually $128 less.
This is like a straight comparison to just holding cryptocurrency in an exchange, not doing anything. So not earning any interest, just literally sitting there, letting it do its up and down wiggle and volatility.
If we were to literally go and sell today, this is pretty much the comparison to say, well, you started the bot when it was worth this much. But in comparison to what it’s worth today, you’d be $128 down if you went and sold it. So we don’t really look at these figures at all. This is just sort of a comparison thing just to purely show how much the bot was started with.
If you look at the top left-hand corner of the Bitsgap screenshot above, you’ll see the bot profit on this particular bot has been 122%.
So instead of just sitting there and going, “Oh, what are my funds worth? Oh, today we’re $128 down”, you get to look at the bots and say, well, it might be $128 down in value, but I now have this much profit it’s actually earned.
But back to my example and asking, how can you actually work all this out on Bitsgap?
Take the sum value here, and subtract the sum total P&L of $6,019. What were our initial funds in the bot? $6,019 total.
That’s where two bots got started on Bitsgap five months and two weeks ago.
Now the next thing to do is actually look and see where are we at today as if we we’re going to sell these coins or close these bots. So you have to look at the wallet value, which you find by clicking on the wallet icon at the top right-hand side of the Bitsgap screen.
So currently, it’s saying there’s a total wallet value of $7,771, but I need to remove the Binance money because that was additional funds that have been added into a third exchange. So you just need to ignore that one. So $7771 less $1023 is actually the total of these two.
It’s $2858 and $3889. So the current wallet value of these two exchanges is $6,747.
But mum has taken out $500. So when the market was riding high she asked, “Oh, can I actually just test and see if I can withdraw this money?” And she took out $500 which she’s just put towards paying for the Bitsgap software for the year. Not that it costs anywhere near that, but she just wanted to be able to sort of prove this can be a way to take her Australian dollars back out of cryptocurrency and be able to use it. So we have to add on an extra $500 to see where are we at today.
Remember, this is only if the bots were being closed today.
So the current funds, as I said, are what’s in the wallets. Plus the $500 she withdrew.
So $7,247 less the initial funds, which you get from either subtracting the profit and loss from the sum value or looking at the two bot initial funds.
If everything was closed and sold today in Bitsgap, as in she left cryptocurrency and never wanted to touch it again, she will have made $1,228 profit after five months and two weeks. And that is in a down market. So that’s still a 20% gain in what is currently right now, a bear market.
The other thing to ask in making decisions about your bots is, do you just keep the bots going?
And as you can see down below, the XCUR/BTC one is active. The other one, SOL/BTC is out of range, meaning it’s not currently earning any profit at the moment, but that’s fine because it’s still has averaged out at 0.72% a day.
It’s still doing better than the XCUR/BTC one that’s actually active. It’s only doing 0.35% a day.
So at one stage when the market was really high, probably about September last year, I had a look at her wallet and I can’t remember the exact number, but it was definitely over $11,000.
And I was like, holy dooley, that’s amazing! She’s made a lot of money! Only if she sold, of course. So if that was the market again, if we were back in September or in future, let’s say it’s like May or June this year and suddenly the market’s gone crazy, if she was to close it all out, move on and have nothing to do with cryptocurrency ever again, then at that point in time, less her initial funds, it’s $4,981 profit. And that would mean an 83% gain in a bull market.
I really wanted to share that with you and show you what is happening. I mean, this is a down market at the moment, and the only way she would be sort of, you can’t even say losing money because it’s not losing money at all, is maybe not realizing as many gains if she was to close the bots today.
I know that life takes over sometimes and some people might need funds in a rush. But if you are trading these types of automated bots, it’s not to say that you won’t come out with a break even, or maybe a small loss. It really comes down to the rules that you follow. You know, the gut instinct or the emotional intelligence or trading intelligence that you have in order to be able to say, what do I want to do?
What can I afford to do if I don’t need the money right now? It’s a down market. Let’s just sit there and wait for it to come back in range and start making its profit again. It may get back up to where it is or beyond.
She’s actually also used some of her profits. She has used some to buy other coins. So this bot was XCUR/BTC, but she used some of the profits just to get into the ETH market. What if Ethereum goes up more?
She got a good tip about ALGO. So she put a little bit of ALGO there. And in the other account, she did the same thing. She wanted to sort of split out some of her Bitcoin for Ethereum right now, as well as being held in the Solana because the bot’s out of range.
When it comes back into range, it works like a little bit of a dollar cost averaging. It starts just buying its way back in. So there would be a balance of both Solana and Bitcoin.
So either way, she’s got a good little portfolio here of Ethereum, Bitcoin, Solana, ALGO, and she’s recently decided to put some other money into the Binance Exchange.
The thousand dollars sitting there is just like a little spread of coins that we’ve done some research on for her and said, oh, maybe just hold a little bit here and a little bit there. So she’s chosen to do it in Binance because Binance is just a super easy way, for Australians in particular, to be able to do Pay ID and instant money goes into the account. It’s all super simple.
They do have a little bit of interest-earning in there as well. I’m slowly educating her on being able to earn interest on her holdings in other aspects, but it’s kind of step-by-step.
I think for us as well, not financial advice by any means, but for us, it just makes sense to have a bit of a diversified portfolio.
So having a mixture of some coins in Binance, FTX and Kucoin, particularly on a nice small balance like this, we just feel it’s a good way to cover your butt. And if nothing else we can watch all of them grow over time and it’s really cool. It’s really exciting.
So even though her balance is down at the moment, it is definitely exciting to think of where it will go in the next few months.
Before I go, I do need to tell you to ignore the value changes here.
Ignore them. Just totally ignore them. These numbers have gone crazy because I’ve played around with the trailing down function inside Bitsgap (which has now been deleted as a function as of July 2022), but the point is just knowing what it is you need to look at to get a good idea and to make it even easier.
And another tip… don’t trade against Bitcoin because Bitcoin is as volatile as the crypto on the left. Just trade with a stablecoin so you can keep a better eye on where your finances are at. But if nothing else, just cross off these values here and literally don’t use it.
I hope that’s been helpful. Leave a comment or get in touch if you have any other questions about reading these numbers on Bitsgap, it can be a bit confusing.
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