28th November 2023
Ronald van Woensel, a co-founder and key initiator at Diamond Pigs, is renowned for his extensive expertise in various ICT domains. What began as a hobby in developing algorithmic trading bots for the Dutch Stock Exchange has flourished into a professional endeavor with Diamond Pigs. Utilizing his expertise, Ronald has developed the Diamond Pigs Sophisticated Wallet Management Platform. In close collaboration with another key initiator and co-founder, Bart Mellink, an IT architect with AI technology expertise, they created an AI-powered Bot Factory. This factory is integrated with a sophisticated fund management system that blends automated trading with intelligent strategies, all seamlessly connected to a trade execution manager that oversees trades across users’ wallets on multiple exchanges.
Which Diamond Pigs strategies use fundamental analysis and trading using bots?
We offer a diverse selection of strategies for our clients to choose from. Not all of our strategies are based on trading or fundamental analysis. Some, like our Berkshire Top-10 strategy, involve holding a collection of coins for extended periods. However, we also utilize fundamental analysis and trading in a variety of active strategies. This range includes Bitcoin Protection (Hereford), the 2 Giants (Gascon, which trades in BTC and ETH), as well as Duroc (Crypto Mix) and Pennywell (Green Coins).
What do you do before deciding to invest in a coin?
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Our bots are created using various technical analysis methods suited for both long-term and short-term trading activities and uses deep learning technology to optimise its results. Our approach to trading activities and bot selection for various strategies is guided by three fundamental principles: risk minimization per trade, gain maximisation per trade, and optimal balance between trade frequency and associated fees. deciding to invest in a coin, we first conduct fundamental analysis. Our goal is to identify the most lucrative coins with the best opportunities.
To find out we go through a checklist:
1. Is the coin supported by a robust product, an effective project team, and/or a valid use case?
2. How frequently do they contribute to their code repository, and what is the quality of these contributions?
3. What segments are they active in? For example, are they involved in gaming, DEFI, etc.?
4. Is there an active community around the project? We monitor this community for a period to gauge the overall sentiment.
5. What are the market specifications, such as trading volumes, market cap, total coin supply (tokenization), etc.?
For instance, we avoid coins that are mere clones of Bitcoin. We seek coins or projects with a unique offering and a strong vision. Subsequently, we compile a list of coins we are interested in investing in. Then, we start our detailed analysis.
How can bots help determine a good trading strategy?
Professional traders analyze the candlestick patterns of the coins they trade, examining them across various time frames and using multiple indicators. Similarly, bots also monitor these signals, aiding in determining their subsequent actions. For example, a bot is capable of identifying when a downward trend is about to end and take a Long position. The criteria set for selling a position can be quite diverse; In addition to assessing potential gains or losses, the bot uses indicators to calculate the maximum drawdown%, to minimize the risk associated with each trade.
Currently, our bots primarily rely on the historical price data of coins. In our bot factory, however, we have the capability to generate bots using various methods for both long and short-term trading. Each method incorporates a range of indicators, leading to unique analyses and outcomes. We utilize a spectrum of advanced analysis methods to ascertain the most effective trading approach for each coin. Furthermore, we add the best-performing bots from these varied methods into a cohesive strategy. The composition, which includes selecting the appropriate coin and the optimal bot for each method, as well as determining the allocation percentage for each bot within a strategy, is done by an optimizer tool. This tool makes its selections based on historical performance data.
What are the benefits of using bots?
-There are quite a few benefits that bots bring to trading:
– Trading bots are active 24/7 continuously
– They can buy and sell a lot faster
– They can respond to fast market sell-offs
– They can monitor large amounts of coins at the same time
– They can stay out of the market during downtrends and thus limiting losses
All these advantages should result in better performance compared to the buy-and-hold of a coin for a long period of time.
Stay tuned for more insights into the innovative world of Diamond Pigs, where technology and strategy converge to maximize your trading potential!. To learn more about Diamond Pigs, please click here to proceed with onboarding to the Diamond Pigs platform.
