The power of artificial intelligence is that it has enabled retail traders to create various automated trading configurations to take profits from the market regardless of the trend.
The cryptocurrency market is extremely volatile and hence creates a plentiful amount of swing trade opportunities at bitsgap we have two automatically trading bots with built-in features like take profit trailing up and stop loss.
Let’s go through the whole process of automated trading to discover its advantages and what strategies we can create from scratch.
First things first let’s take a look at the interface as you log in and open both section a trading dashboard with a chart bot’s configuration panel currently active strategies as well as a list of recommended strategies based on backtest.
Results are at your disposal as we look at the chart which we can easily zoom in and zoom out to better grasp current cryptocurrencies price action and its historical performance.
This allows you to conduct a technical analysis using available instruments.
Just click on the toolbar where you can find instruments like the trend line horizontal line to plot resistance and support levels on a chart.
Fibonacci retracement triangle to pattern formations like this one over here so everything you need is already here the right panel you see here is fully optimized to create diverse trading setups.
For automated bots notice that you have two options simple and advanced.
We will stick to the advanced mode as it has all the instruments we will be covering in this video by clicking on the strategy.
You can select either the s-bot strategy or the classic bot.
What distinguishes these strategies from each other is the algorithm of a proportionate investment distribution.
The classic bot uses the same amount of the base currency equivalent in each grid so at each level it buys and sells the same quantity of the base currency.
Here is the example conversely the s-bot strategy buys and sells different amount of the base currency at each grid level but ensures an equal investment distribution.
Like in this example over here as you click on the exchange section a list of available cryptocurrency exchanges pops out.
Select new exchange to connect your account with the api key.
If you don’t know how to don’t worry here is a simple guide to follow.
Another option is to switch to the demo mode, which is an absolutely risk-free trading simulator where you have virtual money to trade with.
Here you have a built-in list of virtual accounts to trade on using demo mode.
You can develop and discover own trading strategies before risking any real money select any of your preference.
Let’s use binance in this case the next section is called pair here you can select any cryptocurrency pair which is listed on binance.
However if you don’t know which pair to trade, scroll down and below over here you will find a recommended strategies panel.
This is the list of the most successful trading strategies in terms of profitability for the particular bot selected based on backtest data, which is a simulation of how the bot would have performed when trading different coin pairings offered by the selected exchange.
The backtest result can be displayed according to returns delivered in the last month week or three days if you want to undertake your own backtest on a selected cryptocurrency pair.
Let’s say land trading to usdt click on it and move upwards and now select show backtesting results and here you have all information you need you can select the date range and let’s say we are only interested in the range from the 5th of august until the 19th of august.
So that’s going to be a 15 days trading range and as you can clearly see if you would have launched the board back at that time the board would have generated plus 31 in the quote currency and most importantly below you can see all of the completed orders as well as open orders and now is finally the time to configure our first automated trading bot as we have land trading to usdt in active bots.
Let’s use another cryptocurrency pair to trade with and let’s use strategies over here to find recommended cryptocurrency let’s take iris trading to usdt.
At first we must define the trading range the range where you will allow the board to trade you can either drag an upper limit price or the lower limit price.
To build a trading range or you can manually define the lowest and highest prices of your configuration over here you can have a trading range with a narrow buy zone and wide cell zone for this configuration.
You must possess around 70 percent of the base currency on your balance and 30 percent of a quote currency such proportion makes sense if the market is in a strong upside momentum and you expect the market to continue its rally the second possible configuration is a wide bi-zone and a narrow cell zone for this configuration you must possess around 30 percent of the base currency on your balance and 70 percent in the quote currency
Such proportion makes sense if the market is still having its upside momentum but the trend is losing its strength.
By that expect the market to fluctuate drastically in the coming days and you want to enable the bot to save volatile market swings.
The third option is to have a 50 50 split like this a configuration to be considered for this sideways market.
So as you can clearly see, it looks like iris trading to usdt is currently in the sideways market so we can make our trading range defined by the resistance line and support line over here.
We expect the market to fluctuate within these boundaries all orders are allocated at both above and below the current price it would be very time consuming if this strategy is utilized manually.
This is where bot comes in handy the main purpose of this automation is to keep generating profit from any market movement while you are offline we do it by having all orders interchangeable and now is finally the time to choose the number of grid levels the more grid levels you have and the limit is 180 the narrower is the grid spacing in other words a distance between your orders so let’s say i want to have 170 grid levels notice that my grid spacing reduced in the opposite way having fewer grid levels makes grid spacing wider and lesser investment allocation is required so let’s say instead of having 170
let’s have only 40. so you see that now required investment has been reduced and grid spacing is now bigger so the distance between our limit orders increased the investment allocation is set below you can type in a sum let’s say 600 usdt or you can use a percentage instead 70 and below over here you will find the exact investment distribution so we have 5000 iris required as a base currency and 548 usdt as a quote currency to plot all of these by limit orders with this configuration i can successfully launch the bot but let’s say i want to increase the amount of grid levels and
let’s find out what will change as you see the system notifies us that we have insufficient balance to launch the bot with such configurations we should either find more capital for instance by closing some of the active bots we no longer need or deposit extra capital directly to the exchange account a third option is to adjust grid quantity by clicking on this button and here we go to launch the bot with the investment worth 1127 usdt the maximum amount of grid levels allowed is 66 according to this investment distribution allocation push the start bot to launch the bot notice that as you don’t have iris on your balance which is the base currency in this trade this system can buy it for you
with a market buy order the algorithm automatically buys a bit more than required so you see that it is gonna buy 5287 iris whereas in the configuration that we have we are only required to have 4970 and that is because of the exchange fees we have to pay for each order so the amount of fees we must pay is already priced in this amount click on yes by to activate the strategy now your bot is active and here you can find key information and metrics you need you have the investment amount trading range defined by high and low prices amount of grid levels as well as the number of total trades executed by the board
time elapsed current investment change which takes into account the value change of the base currency and the profit generated by the bot and the bot profit in a quote currency to find more information click on view here you can find all orders executed by the bot so far the total amount of the base currency purchased and at the price at which it was purchased as well as the fee paid moreover right here above you see the amount of base currency and quote currency in open orders and finally open orders to see at which price the bot is gonna sell or buy the base currency as we have just launched the board and nothing has happened so far let’s click on another bot to see the action so you see completed orders
you get not only the amount it purchased or sold the buy price sale price is also displayed here you see the profit generated if you want to switch to your real account just click on this avatar and then select this one and by that the system will redirect you on your real account and here you can start trading with your real money just make sure that you have enough of the base currency and quote currency to initiate bots and by clicking on the balance you get this information in the next video we will cover such instruments as take profit stop loss and trailing up use our risk-free trading simulator known as demo mode to discover and experiment with trading strategies