Frequently Asked Questions

With a focused pool of capital, we deliberately target small-cap assets rather than the major coins — and that's a strategic choice, not a limitation.

Small-caps are significantly more volatile than Bitcoin or Ethereum, which means they carry more risk but also far greater upside potential. Our edge lies in identifying and systematically managing that risk: we cap our losses early with a defensive exit strategy, and we let our winners run. In that environment, smaller position sizes can generate outsized returns in ways that large-cap trading simply cannot.

There's also a structural reason to avoid the majors. Assets like Bitcoin are heavily influenced by institutional players — investment banks, macro funds, and large proprietary trading desks — whose capital dwarfs anything we would deploy. Competing in that arena means fighting against participants with information advantages, direct market access, and the ability to move markets themselves. We prefer to operate where those players aren't looking.

Most of the small-cap assets we trade have little to no meaningful price history, which makes traditional backtesting statistically unreliable. A strategy that looks impressive on a chart with six months of data is largely noise.

Instead, we use paper trading — running our algorithms against live market conditions without real capital at risk. We forward-test each strategy against a basket of comparable assets: coins that share the same characteristics, whether that's category (meme, DeFi, gaming), chain, or broader ecosystem behaviour.

This gives us a far more accurate picture of how a strategy will actually perform when deployed, rather than how it would have performed in a market that no longer exists.

We use the word "returns" when communicating with customers because it's the most intuitive metric — but internally, our algorithms are measured entirely differently. We optimise for alpha: consistently outperforming the market, regardless of how much capital we're managing.

This distinction matters more than it might seem. Many traditional fund managers earn primarily through fees tied to assets under management, which incentivises raising ever-larger pools of capital rather than generating genuine performance. In the worst cases, payouts to existing customers come not from trading profits but from fresh inflows — a structure that looks sustainable until it isn't.

At Binbot, our bots are judged by how they perform relative to market movements, not by the volume of capital they move. We would rather run a lean, genuinely alpha-generating operation than scale for its own sake. Your returns come from the market — not from someone else's deposit.