How Trump’s Momentum Boosted Bitcoin's Price & Our All-Time High [Performance Analysis]

Market commentary

Trump’s potential 2024 presidential win spurred a Bitcoin rally, peaking at $73,620 on October 29. Algocrat AI capitalized on this momentum, with strategic entries above $69k and exits near $72,900, reaching a new all-time high. Over the past year, while Bitcoin grew 108% with a 33.6% drawdown, Algocrat achieved 226.68% growth with a 24.47% drawdown, making its return-to-risk ratio 2.88 times higher than Bitcoin’s.

With the increased likelihood that Trump may emerge as the winner in the 2024 U.S. presidential election, we saw a rally in Bitcoin that brought it close to all-time highs.

The Binance spot high on October 29 was 73,620, just slightly below the all-time high of 73,777 by a margin of a bit more than 150 dollars.

Here's how Algocrat AI handled these events:

First, a small disclaimer: we'll examine the results of Algocrat AI's verified, public track record, available here.

Results from individual trades on other brokers may vary due to differences in quotes, fees, and execution, although the long-term results remain comparable.

Now, why the rally?

Markets never give us all the answers, but the primary reason appears to be the increased likelihood of Trump winning in key swing states.

Trump has publicly advocated for the crypto industry, which could lead to increased U.S. investment in Bitcoin, potentially triggering a significant rally or even a new bull run.

Consequently, it’s reasonable for the market to price this in advance.

How did Algocrat AI systems perform during this rally?

They timed entries and exits with precision. Positions were entered above 69k, just before the rally past 70k.

Some exited early, locking in profits, while others continued to ride the trend, exiting close to the peak at 72,900:

As a result, the Algocrat account reached an all-time high, surpassing the previous peak achieved a week earlier on October 23.

Here's how Algocrat’s results with Bitcoin's performance over the last year:

In one year, Bitcoin achieved an impressive growth of over 100% on Binance's spot section, currently up by 108% from a year ago.

The maximum drawdown during this period was 33.6%, calculated as (73,777 - 49,000) / 73,777.

During the same period, Algocrat AI achieved growth of 226.68%, with a maximum drawdown of 24.47%:

The overall return-to-risk, measured by the Calmar ratio, is therefore (226.68 / 24.47) / (108 / 33.6) = 2.88 times higher for Algocrat AI compared to Bitcoin.

Despite Bitcoin’s impressive growth over the past year, Algocrat surpassed this growth by almost three times in terms of return-to-risk ratio.

Best regards,
The Algocrat AI Team

Published on Nov 01, 2024

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