Speaker 1 (00:00): I gave $5,000, this AI to trade crypto for
a year.
They open up to you on stoic after using it for 118 days.
And after going through this week's massive, insane market crash that took most crypto's
down 50%.
We're going to talk about how stoic handled that and dive a little bit more in depth in
how stoic this last
Speaker 2 (00:23): Weekend has been.
One of the most insane market dips I've ever seen in crypto.
We saw almost everything across the board drop 50% or more.
If you're like me and you're invested in crypto during this last week, then it was just a
gut wrenching horrible week where you didn't want to check your phone.
You didn't wanna check your alerts and just pretend like none of it existed because it
was just so bad and so hard to sit through the market and just to deal with all that.
And you're probably on edge right now, wondering like, should I even be here?
Like what's going to happen in the crypto market?
Is it going to keep going down or what's next?
And I feel like I have a really unique perspective, not because I'm a genius, but because my father-in-law
pays a lot of money for a lot of different newsletters.
Speaker 2 (01:12): Some of these are over $10,000 that give him
access to a lot of research on crypto.
And he's just really nice and share all that information with me and forwards all the emails
to me.
So I get to read through a lot of that and get a feel for where these people were paying
a lot of money to research this stuff.
And it's been really accurate in the past where they see the entire market going in.
What's next.
And we'll talk about that a little bit later in the video right now, I want to talk about
stoic.
It's been 118 days since I launched this experiment.
And in 118 days, my $5,000 has gone from 5,000 to $10,476.
And as you can see over the last seven days, I'm actually down 20%.
Before this sell off, I was actually at $14,000, but then after the sell off, it dipped so
low that at one point it was at $7,500.
Speaker 2 (02:05): So obviously stoic lost money during this
market crash.
Doug doesn't have the ability to make money when the entire crypto market is dropping.
It's just not possible because it doesn't have the ability to short the market.
They have talked about introducing that in the future, but that's not currently a feature
of stoic.
So the big question you're probably wondering is how does that compare to the average crypto
ad you invested just broadly in the crypto market or just broadly in Bitcoin, would you
really have made any more money with stoic than you would have investing in various stocks
or all coins or Bitcoin or Ethereum?
I'm going to talk about that in one second, but real quick.
I want to explain how stoic works because recently syndicator released a blog post going
into more detail in exactly how stoic work first off stoic is a long-term trading strategy.
Speaker 2 (02:53): It's not actually meant to make trades every
day.
I see that a lot in the common people asking me why isn't Stoics making trades today.
I don't understand, is it not working well?
It's not supposed to actually make trades every single day.
The way stoic works is it picks positions.
It thinks over a long period of time are going to go up.
It'll invest money into those positions and it holds as the price grows.
The only reason it makes a trade is if the algorithm finds another project in the market,
it thinks is going to go up further or go up faster.
It'll trade.
One of your tokens.
It thinks is less likely to go up for a new one.
It thinks is more likely to go up.
The second thing is stoic only makes these adjustments once per day.
So stoic is actually trying to trade the least amount possible.
Speaker 2 (03:39): That's because you get hit with fees every
time you trade, and it just wouldn't be profitable if it was trading constantly.
The second thing is I had thought hedging potentially played a role in the trading strategy.
Like it used the funds from hedging to jump into trades when it needed to.
And so it's important to have that money hedged well, they've come out and said that that's
not true.
That hedging is just there to keep prices stable and that you can set it at whatever
you want and whatever you think.
So if you think that the market is about to go up, it's better to have your hedging really
low so that all your money's invested in, you can get that price jumped.
On the other hand, if you think the market is really going to just drop, then it's better
to have your hedging high, that way you're least affected by that market drop.
Speaker 2 (04:25): They don't recommend you as gesture hedging
often, just because every time you do that, you're going to get the fees from selling
on Binance, um, and the fees from buying on Binance.
So be really careful about when and how you do it.
Uh, but just know that's what it's purpose is there for it.
And there's obviously dynamic hedging, which is just set by stoic and does whatever they
think is best for most people.
That's going to be the best fit for most of the time.
And lastly, I want to point out the fact that although stoic is pretty awesome and performs
really well and does seem to so far during this experiment consistently beat the market.
It doesn't matter magic.
It's not like it's going to somehow make you money when the entire crypto market yeah,
it's crashing so real quick, let's take a look on how stoic compared to stocks as well
as different cryptocurrencies during this market crash, how'd you invest at $5,000 on
the exact same day.
I invested $5,000 in just stomach.
This is exactly how much you'd have.
And as you can see with stocks, you'd have about half or less with Bitcoin.
You'd have literally what we started with, which is about $5,000.
You made $215
Speaker 3 (05:30): So far with a lot of these,
Speaker 2 (05:32): Just typical average cryptos, you'd be at
about half.
And then with a theory, you'd be about a thousand dollars less than the current price, right.
Was stoic.
And how'd you invest in all these cryptos, it's just like a basket investment and took
equal positions.
And each one, your average return would be $6,591.
So as you can see, versus average investments in the crypto market or in stocks, stoic is
still crushing.
It.
It's still just about twice as much, even with the losses.
Now, obviously for anyone who invested in the last month or the last few weeks, you've
probably lost a massive amount of money.
You're probably down 20, 30 or 40% because you got in right before this massive dip and
with the crypto market, all going down, there's just no way for stoke to make money currently.
So you're probably at a loss and you're wondering, should I sell?
Speaker 2 (06:19): Should I keep holding on?
Like, what should I do?
We do know that stoic in a bull market will make you a lot of money.
Put in a bear market will not make you money.
So really what you need to know is if prices are going to continue to go up or will prices
continue to go down.
So we're going to take a real quick look at that.
I'm going to talk about what some experts are saying on what's going to happen next
with the crypto market.
The first thing is we have something called the fear and greed index, and it's basically
an indicator of a good time to buy and a good time to sell when the index is that max greed,
that's usually a good indicator that it's a time to sell because people are getting
too greedy and prices are going to go down.
Speaker 2 (06:53): On the other hand, when the index is at max
fear, that's usually a good indicator.
That's the time to buy because people are so fearful that they're not seeing the buying
opportunity.
That's right in front of their eyes.
Currently the fear and greed index is sitting in extreme fear indicating this a good time
to buy.
But it's good to note that the fear and greed index, isn't always an accurate picture of
when to buy and sell.
There are times when it's at extreme fear when prices just keep going lower and lower
and lower.
So it's something to be taken always with a grain of salt.
Historically, the crypto market follows Bitcoin and Bitcoin follows the same four cycles we
saw in 2013.
We saw in 2017 and we've seen it so far in 2020 and 2021.
And that is, it starts with a bearish cycle where prices go down.
Speaker 2 (07:37): It then goes into an accumulation phase where
it builds up steam.
And it goes into a boron phase where prices go up and then it ends with a parabolic phase
where prices go through the roof and then it starts the whole process over and goes
back into his bearish phase and then continues the cycle over and over and over again, at
least that's what's happened so far in the history of Bitcoin and cryptocurrencies.
Each of these phases historically has end with a major correction.
So the bear run ends with a major correction and to the accumulation phase, which ends
with a major correction into the bull run phase ends with a major correction into the
parabolic phase based on how things have unfolded so far in 2020 and 2021, that would mean that
this correction would be the end of the bull run and the start of the parabolic phase.
Speaker 2 (08:26): And I'm not the only one that's thinking this
or saying this, there are a lot of experts and really smart people who are saying the
exact same thing because they see the exact same pattern.
The parabolic phase is typically out of all four phases, the phase where you make the
most ridiculous amount of money, because prices get disconnected from reality.
People think they're mad geniuses, they start going crazy.
And just so much money can be made.
And so much money can be lost if you don't get out before it all crashes, just the worst
thing ever.
Now, obviously there's no sign or something that tells us that this correction happens
to be the major correction before the parabolic phase, but it's such a substantial correction
that it seems likely that it is the correction right before the parabolic phase.
And that also doesn't mean that this correction can't go deeper and lower.
Speaker 2 (09:14): But on the other hand, this has been a storage
really low and deep correction.
And for it to go further, lower seems less likely than it to kind of round off and continue
now into the parent bulk base.
Some experts though are saying that it could go as low as $20,000.
Others are saying that, yeah, that's a possibility, but it's more likely that it's going to go
up.
Others are saying right now, she's going to continue to go up.
Everyone is kind of in different spectrums on what they think is going to happen, but
almost everyone agrees that we're entering the fourth and final stage, which is the parabolic
phase where prices just skyrocket and go bananas.
And if that's the case, then stoic should handle that really, really well.
I would guess I never really gone through a pair of, so it's kind of hard to tell how
it will handle it, but it should handle it really well for like a timeframe for all of
this.
I have no idea.
Um, some people are saying that it could happen in the fall.
Some people are saying could happen in December.
Some people are saying it's going to happen summer next year.
Let me know if you have any questions in the comments below.
I try to answer every single one and I'll see it next week.