BOTS scales the risk levels from 1 to 12, in which 1 is almost completely risk-free and 12 is the riskiest. BOTS scales the bots based on the annual volatility of returns on the level of bots. BOTS calculates the scale by looking at the trading behavior of the bot. BOTS studies the assets in which it is invested and investigates how diversified this wallet is for example. 1 comes down to a savings account in Euro.
- 1 until 3 is seen as a stable investment in which you can expect low volatility (and probably also a relatively low potential return). When going up, it gets more interesting.
- From 3 to 6 is still somewhat stable. This scale is applied for example in a well-certified supervised wallet with multiple stable assets that are not correlated to each other. When going higher, then we come to the cryptos.
- From 7 to 9 is fairly stable for cryptos. You only get this risk level when the base asset contains a coin in which you can expect relatively low movement. The scale depends on how many times and how much you trade in the volatile coins.
- If the base asset is volatile, then chances are relatively big that the wallet is categorized as having a risk level of 12. BOTS now only trades in markets of cryptocurrencies. Thus, all strategies on the platform are scaled relatively high. This changes when we can offer bots that trade in other asset classes.
Disclaimer: The risk level appointed by BOTS/RevenYOU is an indicator based on results from the past and this does not predict the future.