How to with Arthur. Market Caps: everything you need to know
BOTS wants to make sure that everyone in the world has the opportunity to build a second, passive income through investing. To do so, we need the help of our bot creators. But what can you expect from us, what do we expect from you, and how do things work? Let's tell you all there is to know.
Next is your market cap: what is it, how is the maximum determined, and why is it so low when you start as a bot creator? Let’s dive right in.
Why is there a limited market cap?
A limited market cap is needed to see how your bot performs in a live trading environment. Where your algorithm might’ve been performing perfectly in a paper-trading climate, that doesn’t necessarily mean it’ll act as well in a live trading scenario. What if your algorithm assumes that every trade is made with perfection (which it obviously isn’t)? In such a scenario, the problems your algorithm faces will grow exponentially once more money is put in the market.
So by limiting the market cap, we can check whether your algorithm can handle the more prominent positions and how it will react. Any new bot creator will get a market cap of €5.000. This way, you can trade with real money and see how your algorithm performs in a live trading situation.
Increasing the market cap
We will monitor your bot for the first five weeks — called the quarantine period. If your algorithm indeed performs as it did on paper, we will start increasing your market cap. As you’re still a new bot creator to the team, we will need time to assess the risk and see how well you can manage your positions. So the first step is to increase your market cap to 100K.
After another two months, we’ll evaluate how your bot has been performing. Does your algorithm still perform well? Then the market cap will be increased to the maximum — which is based on the liquidity. The liquidity can go up to the millions, but this entirely depends on how your bot distributes its trades and what coins it trades in.
For experienced bot creators: life gets a lot easier
But what if you’re a bot creator who’s created and published bots before? In that case, you can skip the first test period but can step into the 100K market cap right away. And we’ll do you one better: you don’t have to sit through the whole two-month quarantine period: you can go straight to top-boss level once we see your bot trades profitably.
What you want is to be a top tier bot creator. In this situation, your bots will skip the bots to test period and start with a 100K market cap, increasing as demand grows.
Why do we do this?
So why do we do all this? Pretty simple: we want to prevent overreaching the maximum liquidity with our assets under management. We’d be unable to use or market anything above this. But, how do we take the growth of the assets under consideration? The users will put money on your bot, and their funds will grow over time. Say they invest €100 in your bot and leave it running for months or even years in a row. As your bot creates profit, the total amount of money on your bot will continue to increase.
The result? At some point, it will reach the maximum market cap. Ergo: we’d be screwed.
Lowering market cap to prevent overreaching the maximum liquidity
So to prevent this from happening, we lower the market cap the moment the alarm bells start ringing. When someone gets out, no one else can take their position. When we reduce the market cap below the current invested amount: no one can get in. Money can only flow out, which is the best way to control the flow and ensure that every user can still get into every trade with 100%. We might not be able to guarantee this, but we’ll sure as hell try!
Join the BOTS community
Now, do you have any questions about the bots in the BOTS app? Please reach out to our support team. You can contact them right here. Or, if you’d like a quick fix, you can check the FAQ on our website, our YouTube channel or join other BOTS users at the BOTS Discord channel!
Are you an ambitious bot creator, and would you like to know how to get things started? Check our bot creator page!
BOTS is a tech company that has developed an app that makes it possible for anyone to start investing. You only need €50 to get started. BOTS uses automated trading strategies based on algorithms. We call these algorithms bots. These bots are tiny superheroes: they make automated investing accessible to everyone. With their help, you can invest in cryptocurrency within minutes — without any knowledge! And we’ll do you one better… In 2021, you’ll also be able to invest in stocks and other currencies through the BOTS app.
The app is free to download and quick and easy to install. BOTS currently operates in more than 15 countries, and by the end of the year, BOTS wants to be active in at least 60 countries and four continents.
Need any help with anything?
Even though automated investing is incredibly easy, you might need some time to find your way around the app and discover all the options. So if you still have questions wandering around your mind, or you just can’t seem to figure it out, please do not hesitate to contact the BOTS support department.
Don’t feel like calling our support team? Just head to the BOTS YouTube channel and browse through the dozens of instructional videos that may help you further. You are also royally invited to the BOTS Discord channel.
Ready to get started?
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.