Traders Leveraging Algorithms Make Gains In Crypto Wealth

The Set Protocol is an automatic trading algorithm that has given investors who risked its use a slightly greener outlook among a massive crash in crypto. Most automated token Sets managed to close last week with a 40% gain over Ether.

1/ It's been a pretty insane last couple of days for #Ethereum and DeFi.

In the midst of the chaos, @tokensets users have been very happy as most of the Sets were sitting in USD when the market drop happened.

Let's review!https://t.co/5WGAYwo1ZW

(thread) pic.twitter.com/xhXXsqeIZM

— sassal.eth/acc 🦇🔊 (@sassal0x) March 14, 2020

Using Logic Instead of Fear

Through a process of rebalancing into stablecoins when its various indicators went bearish, Set managed to help its investors push aside the sheer fear, uncertainty, and doubt (FUD) that has spread across the world’s market. Instead, Set’s protocols used investment decisions based on data, and is paying out dividends because of it.

Automating decisions in regards to investment has long been an aid when it comes to investors. In particular, it allows the elimination of emotion and bias, and lets you stick to a clear-set plan of action.

Earning Massive Gains Over ETH

Through the latest price action, a large number of the rebalancing algorithms the Set Protocol owns has determined that the best course of action would be to move into stablecoins between February’s end and March’s beginning. With how much the entire crypto industry had dropped, it’s easy to see why this was a shrewd move.

When one looks at the price to buy Ethereum, in particular, the performance levels have been incredible. The weakest performances of a rebalancing Set to USDC, has clocked in at 2.4% last week.

However, it should be essential to know that not all Sets managed to rebalance into USDC. Those Sets that rebalanced into LINK, for instance, were unlucky enough to suffer a 15.5% drop during this week since both assets took a proper dive this week.

Saving Graces Amid Collapse Of Crypto Market

Social traders leveraging the Set Protocol enjoyed a fair bit of traction against ETH, as well. The best performance last week can be attributed to Adam Haeems, the CEO of Alphachain Capital. Haeems managed to dock up a 103% gain against ETH.

As the crypto market experienced an overall collapse, those that had their stakes in cash or stablecoins outperformed literally every other form of crypto in the market, are capable of keeping their crypto wealth amidst the chaos that was the market collapse.  Early rebalancing to the USDC would’ve protected most investors, but not many didn’t take notice until it was too late.

Through the revision of performance in regards to various token Sets compared to the USD, 7 out of 23 Sets had a positive return during this market crash. These Sets were the ones that took notice of the bearish market early, immediately rebalancing into stablecoins.