This calculator is for evaluating trading bot return-on-investment. It will help you understand the numbers and levers behind your trading venture. Whether you’re using Crypto-ML Auto Trade, an algo trading bot, or some other form of systematic trading, this ROI calculator will give you important insights into income and expenses.
Defaults: The fields have been pre-populated with Crypto-ML 2018 and 2019 averages (see Trade History for full detail). The monthly fee of $29 is based on the Auto Trade price. Past performance is not necessarily indicative of future results.
Further instructions and insights can be found below the calculator.
Important: values are calculated by averaging inputs across one-year spans. This makes the calculator simpler and easier to use, but may cause reduced accuracy in extreme scenarios.
Trading Bot ROI Calculator Video Overview
Simply fill out the top section of the calculator with your projections. Just like someone buying a rental property would calculate their expectations, you should perform similar calculations and understand the numbers of your business.
Once you have your initial expectations input, change values to see dynamic updates.
- Trading Balance: this is the amount of money in your trading account. The calculator assumes you keep gains in the account, trading more as the account grows.
- Average Quantity of Trades per Month: this is the number of trades you expect to make. Note that 1 trade = 2 sides (1 buy and 1 sell).
- Monthly Fee for Bot Trading: this is the cost of your strategy and execution platform.
- Exchange Per Side Fee: this is the fee your exchange charges per side. Each trade has 2 sides, so this fee is automatically calculated twice per trade.
- Annual Expected Return: this is your anticipated return. Be conservative and try different tolerance bands. Use historical data but understand past performance will be different than future performance.
Key Insights about Bot Trading
How much money should you trade?
Every trader should use their own discretion and never trade more than they’re willing to lose. Using the values above, a trader can start with as little as $1,000 and still be profitable.
Do exchange fees matter?
Yes. Exchange fees make a huge difference in long-term profitability.
Binance charges a base 0.1% whereas Coinbase Pro charges 0.5%.
- Starting with the values above and using Binance’s fees, you’ll end Year 3 with $117,432.
- If you instead used Coinbase Pro, you end Year 3 with $52,715. That’s 55% less.
Does trade frequency matter?
Yes, this is also a huge factor. High-frequency trading adds up very quickly. Day trading is expensive.
Crypto-ML’s machine learning models lean toward swing trading positions. This is not forced on the model (it is allowed to choose frequency dynamically) but works to the advantage of our customers. We can force it to trade more frequently, but it does not achieve better results; further, those results would be greatly diminished by trading fees.
- Using the default values at 3 trades per month (Crypto-ML 2018 average) ends Year 3 at $117,432.
- Changing trade volume to 20 trades per month (1 trade per business day) ends Year 3 at $34,956. That’s 70% less.
Head on over to our Community Forums to discuss!