Now.... Now now now...
When we talk about trades in AIcoinpal we talk about history...
Why we talk about trade history? Because trade history can tell you wether the bot you are having is doing precise guessing or it is just random buying.... I will quote a little...
Random buy is a purchase at any moment without any sense of precision. The random buy has 50/50 chance of reaching a 1% target or 1% stop. or 2% vs 2% or 10%vs10% doesnt matter. In our oppinion all buys that are human made ar random buys, cuz we yet have never seen a person that can prove he can guess the price movement or maybe it is just our 5year experiance till now. How ever... We have met traders that are profitable but it is not related with price prediction althou they think they predict the price correctly, but theire profit is made by risk managment.
SO... Trade history can tell you wether your bot is predicting price correctly or just a random buy...
And keep in mind, by predicting making a prediction 60/40 guessing precision is a lot. I have seen ai bots makint 70/30 guessing precision but it is rear! Normal trader and bot trading would more rely on risk managment other than guessing...
How ever if you do make bots and you want to find the ones that make the best guessing, or analyzing your own trades here are metrics that are important...
1. Avg trade time... = Average trade time, wich means... How long a deal was open untill it reached the target.
2. Avg profit on a deal = Average profit per trade.. How much was the average profit on a deal....
So combining those two to geather, without stop loss a bot that has a fixed sell target on 1% would have an average trade time around 24h.
If you have made a bot that does predictions precisly you would get 1 - 10h average trade time on 1% profit.
3. Total profit made from amount used. So this metric would show you the profit you made % of your capital in a period of time. Dont hope to see these numbers higher than 5 - 20% a month on spot markets. and if you truly wish to receive more you might say use leverage, and i would say... Okay, then it becomes risk trading... Any leverage will be liquidated sooner or later, if it is truly what you wish... Up to you.
4. Metric is down drag in %. This is also a important parameter, calculated from money you used in trading. SO... If you put 1000$ in your trades and your capital goes down by 20% you would have a -20% down drag. if your capital went down by 30% you have 30% down drag. easy...
5. deal count... If your bot has les than 300-500 deals, dont even pay attention to analyze statistics,
6. Bot age, how long the bot has been runing?? Dont even pay attention if bot is runing for less than 3 months.
SO....
How to determin bot quality is it predicting something or not...
1. Average trade time with a 1% target if it is bettern than 10h then you are getting something that might be point of interest, if you have less than 1h, we can start talking to have a look at that bot.
2. if a bot has more than 500deals, avg trade time less than 10h, bot running for atleast 3 months, Profit is greater than down drag,
down drag is less than 10%, than we would say, you have something that guesses the market with precision of 55/45, 60/40 precision.
We mesure precisiono in ratio ods. 60/40 would translate in ratio 1.5, 70/30 would translate in some 2.3 ratio
So...
These are the most important metrics, if your bot cannot make any predictions precisly then it will have a standart random buy metrics.
1% avg profit = 24h
down drag = profit %