Previously, I began a little experiment to compare Active Trading vs Passive Gains

    In the beginning, given my trading skills are extremely amateur, I fully expected passive gains to perform better over time, but, it's good to see what an amateur trader might actually experience, and how something more passive might compare for the average joe.

    Each position started with 1 ETH.

    Here we are 3 months on, and so far it's been a rewarding experience!

    Trading Position.

    In total, over 94 trades have been executed.
    Some trades have been taking advantage of short swings, back and forth within minutes of each other, while some trades have been a little more patient, waiting for the ebs and flows of the daily trading range.

    All trades have been completed using Cow.Fi

    Lending Position

    On AAVE, the current APR is 1.94% for ETH on Arbitrum. This has slowly been ticking away, doing it's thing. As easy as that. APY tends to vary between 1.5% to 2.5%, depending on how much borrowing is taking place.

    Current Balances

    Trading Position

    • 0.0023 ETH
    • 1.1894 wETH

    Lending Position

    • 1.0050 wETH

    As the position is now split in assets; an easier comparison will be the dollar value, but ultimately, regardless of how much the dollar value, the goal of this experiment is to accumulate more ETH.

    Trading Position = $3,511
    Passive Position = $2,961

    January will likely see less trading activity due to summer holidays in the Southern Hemisphere , but apparently this buy low sell high concept is quite rewarding.

    Feel free to share your own trading experiences, strategies and stories!

    Trader Tuesday: Active Trading vs Passive Gains
    byu/DBRiMatt inethtrader



    Posted by DBRiMatt

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