What is the best way of selling a trading algorithm?
I created a trading algorithm which I want to sell. Its not scam, which usually people say when you want to sell it instead of keep it to urself. I dont really understand why except of being sceptical, correct me if im wrong. I want to know what kind of money making strategies are the best for selling my trading algorithm.
Payments for running my algorithm
Server 1, for my website.
Server 2, for my algorithm. (for security and performance its better to keeps these 2 seperate.)
Maybe some other payments I dont know yet that I have to pay for.
These payments are usually monthly or yearly payments.
Earnings that could be invested into the payments above
A part time job with an average salary of around 1k a month.
Me investing money into my own bot. I could withdraw a specific percentage after each profit trade. Balanced just right so I still raise in money thats inside my bot and do not get just 5 cents out of the withdraw.
These are earnings I could use to invest when im at the startup period. Since I would probably not earn enough money in this period with as good as no users at all.
Money earned from people that invested into my bot (algorithm).
This is the earning I want to use when im **not** in the **startup period**.
These are the strategies I am thinking of:
Starting is free, trades made by my bot (algorithm) have trading fee's from, for example, binance. And withdraw costs are 10% where, for example, 1% goes to binance and 9% to me. Pros:
New users might think its pretty cheap, they would lose nothing then already free earned money. the algoritm made $50 into $500 for them and they only lose 10% of it. Which would be $450 left with a $50 loss from that $500. This could result into more users, meaning more money invested in my bot.
If a user puts $1000 into my bot and keeps it running for 10 years with an average profit of 100% per year they would end up with 1 million. If users actually keep there money for this long without any withdraw I would basicly not earn any money from them till the last 10th year. If I do not have enough users that do withdraw in time it could result in being bankrupt...
I am not so sure if I can even make this strategy possible. Since the accounts are from an exchange like Binance I dont know if I can make sure an user can only withdraw at my website, so I can make sure I receive that 10% (-1% to binance, so 9%). If an user could login into there account and withdraw on the binance website I ofcourse can't receive that 10% so easily.
Inactive users. Users who lost there account or are not using it for any other reason. I would never receive any money from these type of users.
My opinion I would like to use this strat mostly because of my first pros. I told some real life people what I am creating and they where all saying that if it was only 10% they would for sure do it. These where people that never traded before and some of them I even had to explain what bitcoin was... This is ofcourse not my target audience but I would totally not mind if they would invest in me. Everyone was new to trading at some point and maybe I can be the trigger for them to start getting into it (or better said, getting into me :D ).
Starting is free, each trade made by my algorithm, buy or sell, will cost the user, for example, 0.5% of the amount. Where the withdraw costs are 0, exept for the costs that binance asks. Pros
I would earn **ALOT** more money the early states and would be able to pay off the servers or even upgrade them way fasteearlyer. This removes the risk of getting bankrupt at some point by not earning enough.
I would 100% sure be able to receive money from users, there would be no way (as far as I know) that users could bypass the costs. Which in strategy #1 may be possible.
Inactive users would not matter.
As good as all other websites that sell there algorithm's have this way of selling. I Belive being unique can work in case of getting extra users. They might think im different then these "scammers" if I use strategy #1.
Users might feel like they lose alot of money if they would start doing alot of calculations. And in the long term, they will ofcourse lose more money. Which is good for me but bad for them. This could result into losing users or getting less "new/starting" users.
My opinion This is definitly a secure/safe option. Especially in the early states. Maybe I could use this in the early states and use strategy #1 after the startup period (for only new users). But this could make everything very complicated.
Starting will cost, for example, $500. Trading fee's are free, exept for the one's from binance. And the same for withdrawing. Pros
I would for sure earn from each user and will be able to pay off my server's costs. But only if im actually popular.
New users would not buy or try my algorithm because it might be to expensive.
New users would not buy or try my algorithm because they could think its fake and do not want to take the risk.
People who are not experienced in trading or in investing would probably never start using my algorithm. Since I told some of those kind of people about this project I know this is true.
I would only earn once and only a set amount which would not make me really that rich... :D
My opinion It has more cons then pros which in my opinion means this is just a bad strategy.
What I want
I would like to know what u guys think is the best strategy and especially why. I would like it if someone has actually some tested results in what people would probably like the most and what would "sell" the best. If someone knows a 4th strategy or even more then I would like to know. But only the best strategy I would use and which one that is is what I want to know. NOTE! These pros and cons are NOT directly some actual facts or have never been seriously TESTED by me so if one of these are actually wrong, im sorry.
21,42% Monthly Return Algorithm Bot Trading - 3Commas Case Study Follow-Up #2
This is the 1-month follow-up to my previous post about bot trading on 3Commas you can find it here: https://www.reddit.com/passive\_income/comments/i2zfjd/31\_daily\_return\_algorithm\_bot\_trading\_3commas/ Since my last post, I have now officially been running the algorithm trading on 3Commas for 1 month and I am blown away by the results. My portfolio increased from 1267$ to 1568$ In 1 month giving me 301$ in profit at the same time I have also earned 0.02511 BTC increasing both my dollar value and the BTC value of the portfolio.
Market performance in test period (1st of August – 1st of September)
Okay so cross referencing whether I’ve been better off just buying BTC and HODLING? In the period where I started from the 1st of August until the moment of writing this (September 1st) BTC only increased 0,627% meaning I outperformed the market with 20,8% in USD terms (Portfolio Performance)! Great news AND my BTC value increased significantly.
Benefits of trading bots
· Bots make it easy to enter the industry (Since you are not actively managing or updating the algorithms, which can get quite complex) · Ensuring efficiency across the board (Bots never sleep and don’t make mistakes) · Trading on a 24-hour basis (Especially useful in the crypto space since the markets never close unlike the stock exchange) · Removing emotions from the equation (You won’t make the emotional YOLO all-in on a crypto/stock that you subjectively like over other, the bot simply follows algorithms and orders and execute)
How to get started?
You can sign up to 3Commas here for your own free 3 days trial period and if you choose to extend you will get a 10% discount and I will get a small commission, so win-win :-). I made a combination of two composite Gordon bots. A Binance BTC Conservative strategy (Safe & Slow) (50%) of portfolio and a Binance BTC Aggressive (Riskier & Fast) (50%) of portfolio. The aggressive bot was outperforming the conservative bot in terms of profit, but of course is more subdue to big volatility. I have also modified my strategy Increasing the amount of trades my bots currently perform I have two Aggressive bots one using BTC and one using USDT. In total I usually have 9 active trading 24/7 and now earn around 25$ per day so expecting my return to exponentially grow as I optimize my bots. Hit me up if you need setup help and I’ll gladly support you first make an account here. Current bot trades
What exchange? Okex
I used Binance initially as 3Commas integrated perfectly with Binance and they are a trusted exchange with low fees. The base fee for trades on Binance is 0.1% for makers and takers. You can reduce that by 25% (that is, to 0.075%) if you hold BNB on Binance, so this is definitely a trick I recommend!. If you don’t have a Binance account you can sign up here and we both get 10% of each other’s trading volume (You will benefit from my continued trades on Binance). However, on the 11th of August I made the transfer over to Okex due to 3Commas making an exclusive deal with Okex giving 100 USDT free in trading fees for new sign-ups giving me a much higher margin on my first trades on that platform. Okex is also highly recommended an have fantastic customer support that answers your question within 30 seconds guaranteed! I can only highly recommend Okex and you can get 10$ in free Bitcoins using this link Sign up to 3Commas here(Free trial + 10% discount): https://3commas.io/?c=Reddit Sign up to Okex here: https://www.okex.com/join/1/2123821
I would love to help anyone interested in getting started with this as it seems like a great passive income stream as I used 15 minutes per day on this bot and earned 0,02511 BTC ≈ 300 USD so far and still counting.
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