
It began as 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 anyone can use DeFi to make money.
Each position started with 1 ETH.
Trading Position.
All trades have been completed using Cow.Fi with a greater shift on limit orders to save time and catch momentum changes while I sleep or work.
The current goal is to see how long it will take to trade 1 ETH into 2 ETH, comparing to lending on Aave.
Lending Position
On AAVE, the current APR is 1.66% 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, but as the overall market sentiment diminishes, the borrowing rate tends to reduce.
Current Balances
Trading Position
- 0.0022 ETH
- 1.0550 wETH
- 1,020.28 USDC
Lending Position
- 1.0095 wETH
Position Balance Values
Trading Position = $3164
Passive Position = $2046
Previous Trading versus Passive difference: +796
Current Trading versus Passive difference: +1118
Looking Ahead
The conflict in Iran has continued to provide market volatility, which in turn has made for some nice swing trading opportunity.
Over the last 6 months, I am now approximately 55% towards the goal of doubling my initial trading position.
With March nearly over, we shall see what April brings us… I'm not expecting a huge breakout in swing direction at this stage, but I have no doubt range trading will continue to yield positive results.
Feel free to share your own trading experiences, strategies and upcoming predictions!
Trader Tuesday: Active Trading vs Passive Gains. #9
byu/DBRiMatt inethtrader
Posted by DBRiMatt
1 Comment
You are slowing getting there. What is your trading strategy ?
!tip 1