What could cause a good performing bot to start underperforming?

One of the biggest challenges of developing systematic trading strategies is to avoid building a strategy that is overfitted for a particular market condition. We are all aware that markets, especially crypto, can be very volatile and can change how prices oscillate over time. Trading strategies aim to continuously readapt and maintain their performance over any given market behavior.

This is however a complicated job that even banks and proprietary trading firms struggle with. By constantly monitoring the performance of our bots, we aim to detect trading strategies that are not able to adapt to the ever-changing market conditions and offer a risk to our customers. If a bot is not able to make money during periods where there is plenty of opportunities and is not managing its risk effectively, we would consider its removal from the platform.