Crypto Trading Bots: How To Set Up A Crypto Trading Bot
Trading is risky, there's no doubt about that. It's the online definition of "anything can happen at any time". A lot of factors can affect your investment and make you gain profits or lose your money. That's apart from the several strategies being used by veteran investors and professional traders. This is why traders often use any help they can get, especially from something neutral. Like a bot. A crypto trading bot has been said to be a good helping aid in the investment market over and over. In a world where crypto trading is unpredictable and unbalanced, a bot might be a good idea, after all. In this article, we'll discuss all you need to know about crypto trading bots and how to create and deploy them. Let's get right into it, then.
How To Set Up A Crypto Trading Bot
If you're looking to create your first crypto trading bot, you might want to give Trailty a try. They managed to provide a detailed guide on creating and deploying your first crypto bot. The guides would be provided step by step below.
Visit the Trailty website, input your appropriate credentials(email and password), and register. It's free so you don't have to worry about anything premium for now. When you input your email address, you would receive a verification link to confirm the email. After them, you're in and good to go.
2. New Bot
After registration, the obvious next step is to create a new bot. When you get into the homepage, the dashboard would display various options, you should see one that says "create a new bot", click on it, a pop-up would appear and would ask you to input more information. This is to make your requirements more specific. Among others, these are a few additional pieces of info you would be required to provide.
- Bot Type: When you're about to choose bot type, it's advised you pick "Rule". This would enable you to access the Traity drag and drop rule builder. When you pick this, you would be able to create new trading strategies, test run them on previously accumulated information on the market, fine-tune the strategy as much as you want until you achieve your desired result and it's profitable.
- Exchange: At this stage, you get to pick the preferred exchange you want your bot to run.
Quoted Asset: This is the time you pick the currency in which your trades would be performed. As a crypto bot, let's go with Bitcoin first. You can do other designs like color your bot and so on.
This is when you let your bot know what it should buy or sell. Assets available on the exchange you picked earlier would appear here.
4. Settings tabThis is where you fine-tune your bot. You tell it how much it can buy and how much it can sell, how long an order stays open till it's closed.
This is by far the most important part. Click on add new and pick from a long list of pre-defined strategies available.
Before you send your bot into the exchange market, you must test run it. Trailty's in-browser implementation makes browsing easy. Your results are recorded so you can switch to any setting at anytime.
The last step is to deploy your bot into live trading scenarios. For further instructions, click on the cloud icon at the top of the interface and follow the instructions provided.
Sometimes, it can be difficult to predict the movement of a cryptocurrency. This is why technical indicators exist. Let's talk about a few indicators and see what they do.
This is a private indicator that uses several events such as trend analysis and momentum measurements to determine when a cryptocurrency would enter a bullish or bearish phase. One of the most important features of this indicator is the trendline. When the price moves upwards, it means that a long signal can be determined. When it moves downwards instead, it means a short signal would be determined. Unlike some indicators, this one doesn't stress you with determining when to open or close a trade, all you have to do while using this indicator is determine your position or your leverage.
RSI (Relative Sales Index)
Since being created forty years ago, this tool has proven over time to be an invaluable resource for crypto traders who depend on market volatility. A key feature of this indicator is that it uses a complex calculation to determine whether a cryptocurrency is overbought or oversold. The formula this indicator uses places a cryptocurrency within the range of 1 - 100. When the RSI of a cryptocurrency is said to be above 70, then it's overbought and when it's below 30, it's oversold. In other words, this indicator helps traders determine when bitcoin's price is far from value, giving them a good entry point before the market can balance itself.
This indicator was created in the 80s by John Bollinger. All this indicator does is show how prices are spread across an average value. Bollinger bands consist of an upper band, an average line, and a lower band. The two outer bands are the ones that react to market movements. They move away from the average line when there is high volatility and move closer to the average line when volatility is low. Hence, if the price of a security goes past the average line and is reaching for the upper band, the market is said to be in an overbought position. If the price of the security, on the other hand, drops below the average line and is reaching for the lower band, the market is then said to be oversold. Bollinger bands are more useful for short term trading.
Use A Free bot
If you have no idea how to go about creating your crypto trading bot and you would love to run some trials and see it first hand, you can always install Robinhood. The trading bot is free and has a wide selection of tools that would help make trading easier for you as you go on.
5 Crypto Trading Bots
This trading bot is generally known to be best for pre-defined strategies. Currently, this bot allows users to choose from over 150 templates that meet market parameters. They also update their list consistently. It's important to know that the number of strategies you would have access to would depend on the pricing plan you choose. Don't fret, there's a free package that offers 7 template strategies and up to $3,000 in trading volume.
Pionex is generally recommended for high-volume traders. You will gain access to 12 trading bots for no extra pay. These bots automate your trading strategy so you don't have to be on the market longer than necessary. Pionex offers low commissions and a well-defined mobile interface with a wide array of selections and an interface that's easy to navigate. Pionex also utilizes a schedule that lets you pay a fee when you add liquidity to the market or take liquidity away from the market. If you place a trade and it doesn't match an outstanding order on the books, you get to pay a maker fee. If it matches an order, on the other hand, you'll pay a taker fee.
This bot is known to be the best at connecting crypto exchanges. Using this bot would allow you to create as many wallets as you can and would also connect you to several or one of the 18 exchanges available on the platform. You also have to choose which plan you would prefer (there are three; starter, professional, and enterprise). This bot is sought after by most traders due to its low price. With this bot, you can maintain and monitor your investments even when you don't have the time to check your trades.
Deemed to be the best overall, cryptohopper provides a rather easy and detailed setup. There is no requirement for your credit card info before you can sign up on this trading bot. This bot doesn't suffer any kind of downtime and is always updated without any sort of halt or impact on your trading account. Another good news about this bot is that it continues working even if you're not online.
Trality is best known for its provision of preset strategies. This bot has a rule builder interface that simply allows you to drag and drop strategies to create your bot's logic. The feature comes in handy for traders that don't know how to code trading algorithms. It also provides a chance to provide fast test runs to see how your bot would turn out in the market.
We hope you can gain more clarification with the explanations above. So, go ahead, create your first crypto trading bot and have a good day.