Better than investors. The crypto hamster Goxx surpasses indices and fund managers

Live streamed German hamster Mr. Goxx has been trading cryptocurrencies since June 12. And not only is its portfolio profitable in the long run, but with its appreciation so far it has surpassed indices such as the S&P 500, FTSE 100 or Dow Jones and is well ahead of some well-known managers of traditional and hedge funds.

In addition, someone will not even make it to a report on Nova in their lifetime, while the hamster trading cryptocurrencies has already had an entry on the CNBC economic television. The bushy speculator, backed by two German people in their thirties, has achieved a portfolio appreciation of 20% over his current trading career. The highest profit so far was recorded in mid-September, when it appreciated by almost fifty percent.

Unfortunately for the hamster, however, it was only an unrealized profit and the recent sale reduced the profit quite significantly. Even so, the animal outperformed much of the human competition.


“It seems that most people in our generation see no other way to create a sufficient financial reserve than to invest their current savings in the cryptocurrency market. At the same time, they may not really know what they are doing. That’s why we thought to see if my hamster would be able to make smarter investment decisions than we humans do, “say the authors of the experiment, who want to remain anonymous despite the hamster’s current success, say.

The hamster has his “trading desk” attached in the form of a smaller box to his normal cage. Each time he finds himself in his “office”, a live stream is launched on the Twitch platform and a bot on the hamster’s Twitter account notifies followers that a new trading session has begun.

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The cryptocurrencies to be traded by the hamster are traded through a carousel run, where the hamster is traded through a variety of cryptocurrencies and tokens. The selection is not entirely random, the hamster’s consulting team pre-selected about thirty tradable cryptocurrencies from the current more than twelve thousand options.

There are two short tunnels near the wheel. Passing through one gives a signal to buy for a predetermined amount, passing through the other to change the order to sell. The chosen type of trade takes place every time a hamster goes through one of the tunnels.

The hamster’s capital meets the needs of the tiny creature. The first month of trading was tough, Mr. Goxx began trading at € 326 on June 12, and ninety-five trading orders later, its initial deposit fell by 7.3 percent. In July, however, luck began to turn in the right direction, and by September 27, when this article was written, the value of the hamster portfolio was 19.41 percent above baseline.

The hamster experiment is actually a peculiar application of the theory of the economist Burton Malkiel, which he summarized in his book The Random Walk on Wall Street from the 1970s. It argues that the development of the value of shares has random and unpredictable paths and that their random selection has similar results as the targeted selection of shares. Also in the book, he recommends looking at investment as a long-term matter and avoiding short-term speculation.

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