Adding more coins has a dramatic impact

Changing the amount of cash involved in the sell than buy trades did not have a positive impact, rather had a discouraging implication. The other variable to change is the number of coins being included. Previously we’ve used 5 coins. Now we’re going to expand to 11 coins. I picked the coins based on those available on Coinbase Pro. That’s the trading platform I currently use. For this run, I used a trade percentage of 0.5. The previous post indicated that this percentage wasn’t productive. But we want to compare this new test to the previous one which used 0.5. Following are results from the latest efforts.

Period	2018-Q1	2018-Q2	2018-Q3	2018-Q4	2019-Q1	2019-Q2
1-BuyAndHold Net	-$5,326.04	$1,193.51	-$1,219.42	-$4,745.01	$2,485.66	$4,568.15
2-GainerLoser (5 coins)	-$5,864.59	-$1,229.55	-$2,149.62	-$4,725.49	$1,176.86	$10,181.90
2-GainerLoser (11 coins)	-$5,268.08	$1,535.29	-$1,344.30	-$4,727.24	$2,546.32	$5,823.16
Period Slope	-44.20	-14.13	-4.71	-27.35	2.48	43.90
Period Trend	0.68	-0.74	-0.10	-0.05	0.12	0.33

I wasn’t particularity surprised that using 11 coins outperformed 5 coins in most periods, but the size was surprising. Following are the totals.

6 Period Total	5 Coins	11 Coins
1-BuyAndHold Net	-$1,569.88	-$3,043.15
2-GainerLoser	-$2,610.49	-$1,434.85

While all strategies were net losers, the 6 quarter total net losses were less than the loss in 2018-Q1. The sum of the 5 quarters since then are profitable. In the chart above, the 11-coin Gainer/Loser scenario slightly outperformed the 5-coin BuyAndHold approach. This requires more investigation. I discuss this in my next post. I’ll tweet @billlanke when I post.