Mr. Goxx is a savvy new investor who has recently started to trade cryptocurrency in the hopes of growing his assets rapidly.
Since June of this year, Mr. Goxx has had a successful start to his career in crypto trading, as his performance to date has clocked in at around +15%. This is higher than most funds and professional traders’ returns annually.
However, his stellar portfolio performance is not the only reason Mr. Goxx is making a splash in the headlines.
Perhaps we should mention another thing about the promising young trader: Mr. Goxx is a hamster.
We’ve Got Some Explaining to Do
Mr. Goxx operates out of a high-tech trading office that is directly attached to his cage. Every day, Mr. Goxx enters the office to begin his workday. His human-operated Twitter account informs his followers that he has begun trading.
Mr. Goxx livestream’s his daily office activity via Twitch so his followers can see him work his magic in real-time.
The first notable feature of Mr. Goxx’s office (pictured above) is the intention wheel. As this unique wheel rotates by the feet of Mr. Goxx, it sifts through different cryptocurrencies such as Bitcoin, Ethereum, and XRP. As Mr. Goxx leaves the intention wheel, it stops spinning at the crypto asset that will be traded.
From there, Mr. Goxx has two tunnels on his office floor. One is dedicated as the sell tunnel, and one is the buy tunnel. Whichever tunnel Mr. Goxx moves through determines the transaction of the selected cryptocurrency.
The intention wheel, buy/sell tunnels, the snippets of necessary coding, and the entire homemade trading office was built by two men from Germany (who remain anonymous). This technology enables the trading office to direct the transactions to the human owners allowing the execution of the trades on a real trading platform via API; with real money.
Software scripting, micro-controllers, single-board computers, 3D printing, laser-cutting and computer-aided design are among the many technologies that allow the Goxx Capital trading floor to operate and execute trades at the command of Mr. Goxx, CEO & Founder.
We are not surprised that the setup required for a hamster to trade crypto by merely existing is vastly complex.
The hours in which Mr. Goxx trades are completely up to him.
The portal between his regular cage and the Goxx Capital trading floor remains open daily, allowing the hamster to travel back and forth as he pleases. Followers of Mr. Goxx await his trading activity by waiting for the next Twitch notification, which simply reads: “Mr. Goxx is in the office.”
Okay.
Now that we have outlined in detail how exactly Mr. Goxx executes crypto trades, it is time to explore the method to his madness.
There is a Method to the Bizarreness
Perhaps we can learn a thing or two from Goxx Capital.
Upon further investigation, Mr. Goxx helps us understand the crypto market from a perspective of clarity and emotionless logic.
The hamster was named after Mt. Gox, a company that was once the largest crypto exchange globally. This reign was brought to a halt when the company had hundreds of thousands of Bitcoins stolen from them, prompting them to file for bankruptcy in 2014.
The anonymous duo behind Mr. Goxx came up with this idea after jokingly pondering the possibility of their pet hamster making smarter investment decisions than humans do.
There is a long-spoken point of advice for day traders that having a consistent system and sticking to it, removing all emotion from the equation, is the key to making steady returns.
Mr. Goxx stands as a notable example of the effect that removing emotion can do on your returns. Common emotions that can often engulf investors include greed (FOMO buying, holding too long) and fear (selling at a loss, selling too soon).
As many new investors and institutions are increasingly fascinated by cryptocurrencies and have dabbling into the market, via exchanges like Binance and Coinbase, many beginning trading before they even know what they are getting into.
There is inherent danger in emerging, volatile markets, and the accessibility of said markets to a new generation of investors breeds the need for some responsibility from all parties involved.
Although with risk comes reward. Let us investigate how Mr. Goxx managed to beat the S&P500 and Warren Buffett.
Analyzing Goxx Capital’s Performed to Date
June 12 marked the first day of Mr. Goxx’s career. Starting with around EU$326, Goxx first deployed money into Stellar (XLM), a cryptocurrency. About 95 orders were executed within the next 30 days to reach a first month return of -7.3%.
Despite the first month of Goxx Capital being down, the hamster’s firm is up +15.25% as of September 30, hitting a mid-September high of nearly +50%.
For reference, the S&P500 was up +1.79% for the same period, while Berkshire Hathway was down -3.38% for the period beginning June 12 until September 30.
However, as we know, time in the market beats timing the market, which is why Mr. Goxx currently sits at realized gains that roughly equates to the 2-year average performance of the S&P500.
Not only did Mr. Goxx beat out the benchmark index, but the furry little trader also beat Berkshire Hathaway, the FTSE 100, and Bitcoin for the same period!
Takeaways From This Experiment
Crypto is a word that can cause quite heated debates amongst the investing community. Controversy surrounding its origin, volatility, and energy use among other things have long been points of intense discussions.
The Goxx Capital project was intended to reflect the light-hearted capability of the crypto markets themselves.
Sparking people’s curiosity with humour is often the best way to introduce them into things like crypto that can be hard to understand, or even accept.
The nameless duo behind Goxx Capital work remotely and have career backgrounds in lecturing, prototyping, and programming.
Many people have shown an interest in the hamster trader’s investing activity; which are executed at random. This form of an animal-operated algorithm (did we really just say that?) has had people who normally would stay away from the crypto market making inquiries.
“Since my hamster took on his business, I got everyone around me asking for more information about this whole crypto thing,” Mr. Goxx’s human owner told BBC News, “mainly people that will normally run away if they’d hear the word ‘blockchain’.”
We continue to monitor Mr. Goxx trading activities as we are eager to see how his year-end crypto portfolio will match up to others’.