The first month of 2024 has just finished, and if you’re looking to deploy capital, let’s see how markets stack up against algorithmic trading. In this video, I’m going to compare a multitude of markets and their performance for January against algorithmic trading, specifically the FED bot, for the span of January. Without further ado, let’s see how they stacked up.
Okay, so we’re here on TradingView, and what I have pulled up here is Bitcoin on the daily chart. What I’m going to do is grab my measuring tool and see how well Bitcoin did in terms of percent changes for January. So, this candlestick right here marks the 1st of January. We’re going to go to the candle close, which is at the top because, of course, this is a bullish candle. Now, let’s find where January 31st is. This candle here is January 31st, and let’s go to the candle close, which is right here. So, if you had invested your money on the 1st of January looking to make a New Year’s resolution in 2024, and you decided to put it into Bitcoin, you’d actually be down on your Bitcoin 3.9%, almost 4% on your investment if you would have gone the Bitcoin route.
Now, let’s go ahead and track gold. I’m always curious how gold is doing. So, with the history of gold being money, I’m always staying up to date with how it is and currently its price. Let’s find the 1st of January. Okay, so this is the 1st of January. We’ll go ahead and drop our measuring tool there and then drag it out to the 31st of January, which is right here on this candle. And that candle closes right there. So, if you had invested your money in gold on the 1st of January, you would only be down 1%—1.6% to be exact. So, gold actually did better than Bitcoin for the month of January.
Let’s pop over to more traditional markets like the S&P 500. Let’s grab our measuring tool and again find the 1st of January. This is going to be the 2nd of January because, again, traditional markets close on weekends and they don’t go during different hours, and they only trade during certain hours. So, the second is realistically when you could have bought it. Let’s go ahead and drop this measuring tool right here on the candle close and pull it over to 31st. So, this is the 31st. I brought the measuring tool over to the close of the candle. Go ahead and drop it there. And if you would have invested your money on the 1st of January, you would have gained 2.20% for the month of January.
Now, let’s track the Vanguard Real Estate ETF. This is how I like to gauge the overall real estate market, and again, I know can’t specifically say the overall market because real estate is not a universal market because depending on which market you’re looking at obviously has a different performance but nonetheless this is a pretty good gauge. So, this would be the candle right here, January 2nd. We’ll grab it to the close, which is up there. And if we draw it out to the 31st, we are looking at a candle right here. Put it on the close. And if you would have invested your money in real estate, you would have been down 5.83%, starting the year off on a pretty rough note.
Next, for all my savers out there, let’s say you didn’t invest any money and you just left your money in the form of your currency. And this is the Dixie, so we’re going to look at the dollar strength. So, if you would have just held your dollars and not done anything with it, you actually would have gained 2% on your purchasing power of the dollar. So, that’s actually pretty good.
Now, let’s pop over to see how the software did in January. So, for the month of January, we did 3.84%. As you can clearly see here, algorithmic trading stacked up quite nicely in comparison to other markets. If you would have made a New Year’s resolution to make a smart investment with the money that you have sitting around and if you would have gone with Bitcoin, S&P, gold, or real estate, you would have actually underperformed in comparison to using algorithmic trading software such as the FED bot. And if you’re interested in the one that I’m speaking about, the link is down below. And if you liked the video, please leave a thumbs up or thumbs down if you didn’t like it. I still want to know. Better yet, leave me a comment and tell me what you’d like to see me compare this algorithmic trading software to. And if it’s a good enough idea, you may just get featured on the next episode.
Like always, my friends, peace.
Please visit This Trading Software Performance for a Month Compared to Other Markets to watch the full video on YouTube!