CoinTech2U: Is It Really Profitable?

Welcome to this detailed review of CoinTech2U, a crypto trading bot that has sparked debates among traders. Today, we’ll dive deep into whether CoinTech2U is truly profitable and address some of the key claims about the platform, such as its 99% winning rate.

If you’re new here or haven’t seen the first part of my review on CoinTech2U, I highly recommend watching it. You’ll find the link in the description or comment section of this blog.

The Core Questions

• Is it true that there are no losses with CoinTech2U?
• Does it really achieve a 99% winning rate?

Let’s explore these claims and the trading strategy employed by CoinTech2U.

The Trading Strategy: Martingale and Dual Positions

CoinTech2U uses a Martingale strategy, which involves opening both Buy and Sell positions simultaneously when the bot begins trading on your chosen platform (e.g., Binance). This strategy aims to capitalize on market movements by ensuring that one side of the trade aligns with market trends.

How It Works

1. Dual Positions: If the market rises, the Buy position profits. If it falls, the Sell position profits.
2. No Stop Loss: The bot does not close losing trades, resulting in floating losses (unrealized losses that remain open until market conditions change).

What Is Floating Loss?

Floating loss refers to trades that are still open but currently in the negative. For instance, if a trade hasn’t been closed yet and is losing, it’s categorized as a floating loss.

Here’s an example:

• You have an open trade with a negative value, waiting for the market to align with the position.
• In CoinTech2U’s setup, while one position always wins, the other may accumulate a growing floating loss, especially in trending markets (i.e., consistent upward or downward price movement).

Measuring Profitability

The profitability of CoinTech2U boils down to these factors:

1. Realized PNL (Profit and Loss): This refers to profits from closed trades.
2. Floating Losses: If the cumulative floating losses exceed profits from closed trades, it’s not profitable.

Key Points:

• Winning trades are guaranteed in the short term due to dual positions.
• However, floating losses can grow significantly in a trending market, making recovery difficult if the market doesn’t return to the average price.

Risks of the Strategy

1. Capital Requirements: To sustain growing floating losses, you need substantial capital. Without sufficient funds, the bot cannot open new trades, leading to missed opportunities and potential liquidation.
2. Trending Markets: Continuous upward or downward trends can lead to significant floating losses on one side of the trade.
3. Leverage Risks: Since CoinTech2U operates in futures trading, the use of leverage can magnify losses, leading to faster liquidation if not managed properly.

“Invisible Liability” Explained

Floating loss is often called an “invisible liability” because:

• It doesn’t count as an actual loss until the position is closed.
• However, it can still affect your portfolio’s health, especially if it leads to liquidation.

My Personal Take

In my experience, I find CoinTech2U’s strategy to be high-risk and not suited to my trading style. Here’s why:

1. High Exposure: The absence of stop loss and reliance on waiting for the market to align increases vulnerability.
2. Capital Intensity: Without a flexible capital reserve, this setup can lead to liquidation during prolonged trending markets.

That said, this is my personal opinion. The Martingale strategy can work for others, provided they have:

1. Adequate Capital: To support growing floating losses and prevent liquidation.
2. Quick Profits from Closed Trades: If closed trades consistently outpace floating losses, the strategy can be profitable.

Key Considerations for Using CoinTech2U

1. Capital Availability: Ensure you have enough funds to support the floating losses.
2. Choose Stable Coins: Avoid highly volatile or trending coins that may result in significant floating losses.
3. Monitor Floating Losses: Actively manage your trades to prevent overexposure.

Final Thoughts

The strategy used by CoinTech2U may appear to have no losses due to the guaranteed winning trades in each cycle. However, floating losses can act as a “ticking time bomb” that could liquidate your entire portfolio if unmanaged.

To make CoinTech2U profitable for you, focus on:

• Managing floating losses effectively.
• Ensuring closed trade profits consistently outweigh unrealized losses.

Your Opinion Matters

What about you? Based on this discussion, do you think CoinTech2U is profitable or not? Share your thoughts in the comments section to help others decide if this platform is worth using.

Thank you for reading this review. If you have any questions or insights, feel free to share them below. Until next time, I’m Neil Yanto. Bye!

PART 2