AI Summary
This video presents the fourth update on a 111-day cryptocurrency trading experiment where the creator opens positions randomly using a coin toss. The experiment aims to test the common claim that 95% of traders lose money by comparing random trading against deliberate strategies. The creator reports a realized profit of $25 from an initial $100 deposit, demonstrating that even random trading can yield positive returns.
Chapters
The experiment has been running for 111 days, with the creator opening positions at random using a coin toss to decide between Long and Short on randomly chosen trading pairs.
91 positions were opened, 83 closed, and 8 remain open. Total earned is $41.30, with unrealized profit of $16 USDT, leaving a realized profit of $25 from the initial $100 deposit.
Profit peaked at nearly $30 a few days ago but dropped as short positions were closed and long positions went into losses. The creator now opens positions for 1% of the deposit to manage risk.
The creator averages positions, having eliminated twice with -300% and -600% losses, both times due to Long positions. The coin toss is used to decide direction, and all transactions are recorded on video.
The creator demonstrates opening a new position: selecting a coin, flipping a coin (tails = Long, heads = Short), setting take profit via a calculator, and confirming the trade.
The creator notes that earning $25 from $100 without doing anything is a good result, spending only one minute a day. They speculate that with $1000, they would have earned $250.
Plans to increase position size to $1.50 when net profit reaches $150, and to $2 when it reaches $200, aiming for higher profits.
The experiment shows that random trading can yield positive returns, at least in the short term, challenging the notion that deliberate strategies are always necessary. The creator remains optimistic and plans to scale up the experiment as profits grow.
Mentioned in this Video
Tutorial Checklist
Study Flashcards (6)
How many positions were opened during the 111-day experiment?
easy
Click to reveal answer
How many positions were opened during the 111-day experiment?
91 positions were opened.
00:39
What was the realized profit after 111 days?
easy
Click to reveal answer
What was the realized profit after 111 days?
The realized profit was $25.
01:11
What method is used to decide between Long and Short?
easy
Click to reveal answer
What method is used to decide between Long and Short?
A coin toss: tails = Long, heads = Short.
03:01
What percentage of the deposit is used for each position?
medium
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What percentage of the deposit is used for each position?
1% of the deposit.
01:38
What was the peak profit during the experiment?
medium
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What was the peak profit during the experiment?
The peak profit was nearly $30.
01:25
How many times did the creator eliminate positions due to averaging?
medium
Click to reveal answer
How many times did the creator eliminate positions due to averaging?
Twice, with -300% and -600% losses.
01:51
💡 Key Takeaways
Random Trading Experiment
Challenges the assumption that deliberate strategies are necessary for trading success.
00:08Realized Profit of $25
Demonstrates that random trading can be profitable, at least in the short term.
01:11Averaging Strategy
Shows a risk management technique that can lead to large losses but also recovery.
01:51Scalability Potential
Illustrates how small profits can scale with larger deposits, a key principle for traders.
04:07Full Transcript
[00:08] result of my experiment which has been going on for 111 days already, this is the fourth video from this section. So let's summarize. After all, they are very open a position at random. I choose a random
[00:25] trading pair and, using the coin toss, open a position in Long or Short. The reason for this experiment is because of the famous expression that 95 percent of traders sooner or later lose their money, and then I thought. After all,
[00:39] they deliberately open their positions. But I will do it thoughtlessly, relying on more chance, so to speak, and here's what I got during this time. For 111 days of the experiment, 91 positions were opened, 83 of them were closed and 8 remain
[00:56] open. A total of 41 dollars 30 cents was earned. If we subtract from them these unclosed positions on which there is a minus, then we see this unrealized profit according to UFO 16 usdt, then the realized
[01:11] profit will be 25 dollars Let me remind you that initially the amount was 100 dollars, in percentage terms I
[01:25] deposit using this trading method, if it can even be called trading, although a few days ago there was almost 30 dollars in profit, more precisely was almost 30 dollars in profit, more precisely somewhere around 2950, but then the market went down, short positions were closed, Alan, goals began to go into big minuses. Well, that's
[01:38] why I decided to open positions for one percent of the deposit from the amount of 100 dollars, the market still goes up and down and sooner or later the position, even with the biggest minus, should close. Well, at least I
[01:51] should close. Well, at least I hope so, especially since I average them. Now I already have two averaged positions, and here is the coin gift, I have already eliminated twice, the first time by -300 percent and the second time by -600 percent, this is because I
[02:05] got it in Long now I'll show you where it was, I would never have opened Long here. As you can see, a lot of
[02:20] time has passed since the opening somewhere At the beginning of February, on the third, I think, I opened this Long and for the entire time, they wrote off about 50 cents in funding. It's a pity that the funding is not displayed on Binance. If I refused to open such
[02:35] positions, there would be no point in the experiment, so I do everything as honestly as possible and record each new transaction on video and post it in the Telegram group. By the way, you can follow the progress of the experiment there. Right now, I
[02:48] will open a new position, and in the meantime, you can like this video and subscribe to the channel, which means choosing a coin from the list that I come across. coin from the list that I come across. Well, this is how I came across such a
[03:01] coin. Choose it, then I flip the coin. Tails is Long, heads is Short. If tails come up, then we open Long. I write the amount,
[03:19] Then you need to immediately set Take profit. This is, of course, more convenient to do in advance, but I'm used to constantly doing this through a calculator. I write the entry price
[03:38] I need to insert into Take Profit. I copy these numbers these numbers and paste them into my position,
[03:52] paste, you see, the profit is 48 cents. I confirm. everything is ready the position will close automatically Some of you may have thought Well, 25 dollars is not serious so Sorry, I initially had 100 dollars and when I
[04:07] started the experiment It seemed to me that on the contrary I would lose this money I did not think that I would be able to earn, so I did not mind losing 100 dollars Yes, even earn 25 dollars without doing anything I think it’s a good result given that
[04:20] I spend one minute a day opening a position if there were 1000 dollars, I would have earned 250 dollars, but you already know how you can reason like that for a long time if 1000 dollars if 10 thousand dollars in general you understand I would also like to
[04:35] add that I plan to reach the mark of 150 dollars of net profit to open positions for one and a half dollars and accordingly the profit will dollars and accordingly the profit will no longer be 50 cents but 75 and even I hope to
[04:47] quickly reach the mark of 200 dollars and when there are 200 dollars, I will already open positions for 2 dollars Well, this is in theory And what will happen in practice, we will definitely find out Write in the comments what you think about The result
[05:02] of this experiment, and also write ideas that can be introduced, implemented, and adjusted. These rules, be sure to like. If you liked this video, subscribe to the channel and the group on
[05:16] Telegram. Thank you all for watching. Bye everyone