Abstract

Last crypto bull run, Bitcoin surged 700% between February 3rd, 2020 ($8,509) and November 8th, 2021 ($69,044). Meanwhile, Ethereum accrued 4,474% from $106 to $4,850 for the same time period. Given the ETF approval and institutional capital being deployed into few crypto-assets such as Bitcoin & Ethereum, it is believed similar returns could be expected pushing the price of Bitcoin beyond $250,000 per BTC (500%+), while Ethereum could surge to $18,000 (629%+). However, such returns are no longer large enough to convert a $20,000 investment into a $1,000,000+, for this reason, I will be using a grid-bot strategy with leverage to maximize my returns. Note, that this is not financial advice, I’m simply describing one of many of my strategies that I will use to generate life changing money for myself. These strategies are highly risky and could lead to a complete loss of capital. As well, I will readjust my strategy along the way to adapt to market conditions and I will describe such time-sensitive changes on x.com/Crypto_Rookies.

Bitcoin Surge 700% between Feb 2020 and Nov 2021
Ethereum Surge 4,474% between Feb 2020 and Nov 2021
ETHBTC Surge 335% between Feb 2020 and Nov 2021

Introduction

Every four years, the crypto industry undergoes massive growth until the market crashes again. If timing follows historical patterns, the next crash may be somewhere after mid 2025. Until then, it is likely that the momentum from Bitcoin & Ethereum ETFs will fuel early growth into the market. While the bull run is underway, there will be large fluctuations, sometimes even up to 30% downturns, and any strategy must be able to resist such quick price collapse. In this article, I will describe one of my strategies that utilize grid-bots to trade on my behalf hundreds of times a day on micro-fluctuations on the price of Bitcoin, Ethereum, and ETHBTC pair. I will utilize leverage up to 20X maximum and ensure a potential 30% collapse will not liquidate my assets. This means, a $20,000 capital investment will be leveraged to trade upward of $200,000, such that if we achieve a return on Bitcoin/Ethereum of about 500% in the next 600 days, we have a chance to generate more than $1,000,000.

You may also refer to my other strategy that I implemented on January 1st, 2024 to also turn $20,000 into $1,000,000 with an aggressive diversified crypto-portfolio which is less likely to be liquidated.

Strategy

Grid-bots are available on most centralized exchanges (CEX - checkout links at the end of this article for referral links to various CEX) and some decentralized exchanges (DEX) such as Helix. Grid-bots configured for a long position essentially trade on your behalf everytime the price of an asset crosses a grid line below the current price, while it sells when the price crosses above a grid line above the current price. Therefore, the bot keeps buying and selling when prices cross these grid lines between a specified price range making profitable pairs of trade. The more sideway fluctuation happening the more profitable pairs of trades are generated and accumulating more capital. Meanwhile, there is a sacrifice to consider here, because the bot will sell too early a portion of the asset when the price is growing very rapidly, it is best used in periods that are not undergoing exponential growth. This sacrifice comes at the benefit of slightly safer trades. I often don’t even use stop loss when I trade with grid bots, because I carefully select the leverage and range to make sure I can sustain significant price corrections.

Bitcoin range between $38,536 and $59,429

As of February 17, 2024, here’s a price chart of Bitcoin and my selected range given the current market conditions. Based on technical analysis of the chart and current fundamental analysis of the Bitcoin ETF situation with GBTC sell pressure. I believe a proper range for the next few weeks will be between $37,500 and $57,850. This is also corroborated on the liquidation zone on Coinglass.

Coinglass liquidation heatmap as of February 17, 2024

The way you can think of a grid bot, is that when the price goes down after you have activated the bot, you are essentially dollar cost averaging (DCA) as the bot buys while on the way down. It’s not the most capital efficient method, but it’s a lot more forgiving when you make mistakes.

As we get closer to a potential market collapse after mid-2025, I will start to significantly reduce leverage down to 0X and exit into USD and other much safer assets such as real world tokenized assets that are recession proof.

I invested the first $3,143.24 out of $20,000 on a grid bot on Bitcoin 3 days ago on February 14. So far, there’s been $195.42 of realized profits (i.e. these profits have been on completed pairs of trades), and $475.14 in total including the non-realized profits which would only become real profits if I would terminate the bot right now. Overall, that’s a 15% growth in 3 days because the range and price momentum was in my favor. For this bot, I used 200 grids between the range $37,500 and $57,850 based on my technical analysis of the chart as well as the liquidation map from Coinglass. I used a 10X leverage and my liquidation price started at about $36,000 but given my current profit, the liquidation price has now moved down to $32,089. There’s been 293 trades so far.

Grid Bot on Bitcoin Started on Feb 14, 2024

Meanwhile, I do believe that with the pending Ethereum ETF, the price of ETH may outperform Bitcoin. As well, thus far for the past several months the price of ETH has been lagging significantly behind Bitcoin most likely because of the pending Bitcoin ETF which has been approved already. So, I believe Ethereum will be catching up in the next few months until the ETF gets approved.

Ethereum levels as of February 17, 2024

Looking at the chart of Ethereum, I feel reaching the resistance zone at $3550 could be reached soon because of the pending ETF speculative buying pressure. As well, I believe it is not impossible we could see some downturn down to the $2160 prize support zone. So, I configured my grid bot with a range between these two price points, with 150 grid in between to ensure my profit per grid would be above 0.3% while still executing trades every $9.3. Finally, I used a 10X leverage which gave me a liquidation price of $2303 which will be moving down as my bot generates realized profits, so I’m relatively confident to avoid a liquidation without using a stop loss. My bot will dollar cost average (DCA) if the price goes down from the current price, and will sell with leverage on the way up.

Grid Bot on Ethereum Started on Feb 17, 2024

Summary

Once a month, I will publish an updated blog post on the results and discuss if I am on track to achieve my goals. Meanwhile, do not forget to follow me on Twitter (x.com) to get more time-sensitive changes to my trades for any of my investment strategies. While such returns seem out of reach, I have achieved much higher returns in the last crypto bull market, however I had not learned to take enough profits before the market crash even if I knew it was starting to overheat. I strongly advise anyone who follows me to not make this mistake, and make sure to understand that everyone is a genius in a bull market, but taking profits along the way can feel bad until there is a significant collapse at which point you’ll very much appreciate the sacrifice.

About

Crypto Rookies is a crypto investor, serial entrepreneur in Artificial Intelligence and Web3/crypto with expertise in tokenomics and market making. Currently CEO of Smooth, which focuses on solving the problem of 95% of crypto-currencies failing in their first 2 years.

Smooth prevent such failure by:

1) Community building with AI (don't waste money on marketing & influencers)

2) SEC-compliant Tokenomics

3) Market Making (hybrid between stablecoins & altcoins)

4) Treasury management (10%-100% APY depending on risk)

This blog channel generates 10,000+ views per month on the topic of tokenomics and crypto investments, so if you are interested in becoming a sponsor, please reach out to Crypto Rookies.

Meanwhile, please feel free to join the various communities I am involved in and do not hesitate to reach out.

  1. Twitter
    1. YouTube with Cyrator and Mikhail Yergen
      1. Cyrator (a transparent and reliable token review/ranking community where anyone can join, contribute and earn)

        Also check out some of the early stage crypto assets that I’m actively using:

        1. GRVT, it’s a Decentralized zk-powered crypto exchange.
          1. MarginFi, it’s a peer-to-peer lending protocol on Solana.
            1. Drift, it’s a Decentralized crypto exchange on Solana.
              1. Swell, it’s a liquid staking protocol to use in conjunction with EigenLayer.
                1. Linea, a layer 2 protocol of Ethereum using ZK technology
                  1. GetGrass, a DePIN project for shared internet bandwidth with an upcoming data labeling system

                    Use my referral code below for various crypto tools used for trading:

                    Centralised Crypto Exchanges to trade with Leverage and Grid Bots: