Bitcoin Forum

Hi,

I am not new in bitcoin but I am new in trading..  :)

And I just want to ask people who have experience in trading:

If I will make bitstamp.net bot which will automatically sell/buy BTC on price changing for example: if bitcoin price change on -10 cents - BUY and then wait until it +20 cents in price and SELL.

So my bot will just buy or sell on price changing. Will it working???

I have ~1000 usd in BTC so I will start from this amount. I know that bitcoin changes price every minute so which is the best percent for changing? 10%, 1% ???

Give me the best formula for getting profit from price changing generally percents. Should it wait until bitcoin price will change a bit (for some cents) or for a few dollars?

Thanks in advance. I am new on it so please help me.  ::)

There is nothing for sure that you will get profit or lose your bitcoins but I think that you should first calculate the exchange fee and estimate a small profit but I would think about cents because basically you will work only for the exchange.

Using bot are not efficient, and that's can't for urgently taking any act for you. Look at the margin and get your standard price, I guess this need to be lower than the price of the current market.

The golden thing is patient, I doing it the in trading alt coin, if you can buying the bitcoin as you can see the alt price are got green. Bitcoin will get affect caused by the green alt, and you will get bitcoin at red, and that's the best timing for buying some, but looking at the statistic, I guess there is a little pump in next day. It needs a lot of

I have not used a bot before in trading. What I do is I set up the target for buys and sells. It will automatically execute if it hits that price. I think you should also consider the fees when you make the calculations on setting up your bot.

Trading bots are not bad hence they  would really help you  to automated  trading but its  much  better to make  manual  trading   rather  than  on automatic because   you would surely  learn  up things  especially on bitcoins price. As  you trade for  long you  would really  understand  it, YOu  have  enough  amount on starting  trading to bitcoin  but  price  doesnt  move that fast  on daily basis sometimes it  takes  weeks or months  it really depends on the  movement  of  bitcoins price.

I did not try to used a bot also but I believe that from time to time you should monitor also.How about if traders are already dumping? Sometimes other trader are simply made a trick on bot, if the bot is active, they can put simply a price higher that will bot will buy a coin,just to get rid of it.  ;D

Agree,  better to  make  manual trading so that  you could always see your trades   because there are  circumtances  that  bots  cant   comprehend and  cant  make such decisions. Bot   can really be trick  especially by those  experienced   traders  thats why  we should  not  fully rely on it.

you are not considering the most important thing, ask yourself these:
- Will price go down -10 cents or will it go down -10 dollars
- or will it go up and never go down
- and what if it went down -10 cents and never went up +20 cents

trading is not as easy as you may think. you should buy when you think it is going to go up not at current price -10 cent or whatever!

that's right there's a lots of things that is needed to consider mate bot will help but your main experience needs first master the manual trading before you use the bot in that way you will be more familiar with certain movement and you will able to know reason why you need to go in and why you need to go out its the basic principle since we are dealing with our money.

OP if you want to build a high frequency trading bot but have no idea what you are doing, then I would suggest not to pursue it unless you meet someone who does know what to do. But people tend to be secretive about their trading methods because if they show it to someone that would risk it to spread and follow it making the strategy not as effective anymore. Trusting someone to give you the right information outright is also a bad idea. Most of the traders, especially in the Bitcoin scene are mostly greedy bastards.

Trading fees of ~0.2% is not going to have a significant impact on your profits.

don't ask us, backtest it

If you are looking for a little profit from exchange or you what to arbitrage I think you have to read this "Arbitrage serves an important function in the Bitcoin economy. Thanks to the individuals and automated bots that actively look for price differences between the various Bitcoin exchanges and buy from one and sell to another if the price disparity ever becomes high enough for the transaction to be worth it, people who are buying or selling BTC for their own use can rest assured that they are paying roughly the same price no matter which exchange they go to. Arbitrage also promotes competition among exchanges; if the only people trading on exchanges were those who were actually seeking to convert their money from one currency to the other, there would not be enough volume on the smaller exchange to sustain them, and it would be very difficult for new entrants to gather up enough momentum to survive".

keep in mind if you're using bot set the margin between buy and seel far above the amount which will be deducted few percents for every transaction in the market fee,if the bot could finely running then it's will working,and any technical problem on the bot is on you to check it

it will only work if bitcoin price (or any other thing that you want to trade) always stays between two fixed top and bottom price forever, and we all know that is not true!

try to decide on the prices yourself and use your bot only to watch for stop-loss and execution of orders not making them itself.

I Suggest You to Don't Use Any Bots Fir Trading Because it is illegal By All the Trading site and If you Caught Using a Not then your Trading Account Can be Blocked Permanently By the Trading Website......
I Prefer You to Choose to do Trading Personally Because it will Give You Knowledge and Experience about Trading and You can't Got Blocked By any Site.....

In my experience bot will not trade better than what you could do manually. Furthermore, all strategies will not work all the time, you need to adjust/determine strategies time to time. It will be possible only with manual trading, for the same reasons bots do fail more frequently.

True. Against different market fluctuations most of the bots will not work well. They are simply based on some preset values and codes, when completely new things happen, a bot will not cope up that. Usually all the markets are known for different conditions for different days, so in my opinion too manual trading only will work for a successful trading.

Creating such a bot is not difficult but my opinion is that you need to learn how to trade yourself and then and only then create a bot that simulates your decision making, assuming you are good enough to make money while trading BTC.

Though it is true that manual trading is more effective, automated can have it's perks. For example manual trading requires your attention and your attention requires you to be awake. What I'm trying to get at is a well set up bot can stimulate your overall growth by giving you small gains during what would normally be stagnant time. Sure it is not as effective as previous posters have brought up already, but after a rough day of trading, it can be nice to appreciate small growth after a long nights rest.

Thanks guys  :) Ok I will try first manually then if i will like it and will have my own strategy I will try to make bot for it...  :)

Possibly the best thing you can do might be, coding a bot which will do all the technical analysis portions, still you will need yourself to decide and finalise the trading calls. This way you will automate some of your trading activities to avoid hassles.

Bots are good till the point analysis, yes opening/closing trading positions should be done manually for a safer and profitable trading across different market conditions.

$1000 usd of bitcoin is not much to make significant profit with your strategy but you can try margin trading which will multiply your order size for small fee than normal trading fee but both risk of loss and profit is good in margin trading with even small amount of bankroll.

I think better strategy is to look on long term price change rather than lossing in trying to catch few cents movements.

It sounds like you have a good plan going and you have a direction. Just keep your eyes open, learn from lurking. Manually will teach you the skills and decisions to alter how you set your bot. While doing one you are learning to optimize how you are doing the other. Listen to some music while you read up in forums like these, I find it helps me concentrate.

Instead of going for bot why dont you first try how to trade and what percentage of ratio is moving daily in the market, then you will get full idea and then you can create the bot according to that , this will give you more surety of your trading bot success

you can do them side by side.
try to learn and as you go on, do the coding also. the only thing you have to leave for the end is the execution of trades. you bot can analyze and report back to you and show you what trades to make and when to buy and sell and then you do the trades manually to find out the bugs and improve it then after a while you can make everything automatic eventually.

It is good that you listen to advice, but that is the way it is supposed to be done, first you need to learn how to do something the old fashioned way and when you finally know how, that is when you can start to automate the process.

Do you have such bot?

I don`t trust auto trading bots.I`ve never found a bot that really works.

I think that there is a transaction fee for every trade,so the profit will be smaller.

there are bots that work and are decent, the only thing that is true about them is that bots are not going to perform magic to make you rich. you have to know what trading is and how to make profit from trading before using a bot because you need to understand what it is doing since it is never like click a button and make money!

Because you don't trust them, no one should use them?
There are bots that work and make huge money still, but nobody will actually tell you the way they work.
You need to have a check on them and what they are trading, prices, difference, etc.
And about transaction fee, you are going to get it charged even if you go manual, so what's so different there?

While its true that the exact mechanics behind a bot are not going to be revealed by the developers, they need to be based around sound economic theory otherwise the bot is not going to work at all.

bots can work.
but if you can buy it, or it doesn't work very good, or not for very long.
a bot needs steady adjustments.
And if you have a realy good bot, why sell it?

I not ever seen about that. Even if we can use the bot, but it's possibly for bot automation change the range of buy and sells? If it can, it's like magic.
Bot was made by human and it is not perfect like our brain is made by god. You can tell me one if you can.

until now i'm never use bot for trading, i'm more comfortable use manual trading, if you want to know about your strategy can work or not, you should try in a little fund and then after you try you can analysis what you have done, make your own research make you know a mistake you have done and don't do that in future

He just stated that he will try it manually and after he is ok with his strategy then he will create a bot for it making his trade automated.


I agree but bot will at least set your trading to your buy limit and sell limit.  It will work when you are sleeping and it will act according to what you wanted your bot to trade, in what price it will buy or what price it will sell and the volume to buy and to sell.  It is an effective tool especially when you are trading a high volatile item where fluctuation can give you good profit while you are away from your keyboard.

the first part about bots is correct because it can work 24/7 for you and watch the changes instead of you.

but at the same time if you rely on a bot to make the trades for you, it can be a bit risky since some changes may trigger the buy or sell rule on your bot and the bot acts on them but these trades may not be favorable for you so you have to be extra careful about how much money you are risking by relying on a bot.

to make an additional earning or profit of course,the only purpose that's make sense by selling it or making it commercial,it can help another trader and also give you benefits,and maybe by selling the bot you can make a profit even higher than doing trading with the bot

In my opinion, this will not work.

Example, the price of bitcoin is $100 then it dropped to $99.90 then bot buys. The price further went down and stayed there FOREVER. Then you lost 10 cents per bitcoin.

Another situation is when the price dropped to $99.90 then bot buys. The price went up; bot sold Bitcoins at $100.20, but the price went up to $500. Then you lost the opportunity to sell at that price, and you could have earned more.

If you want trading then you needs to get remain updated with average price of bitcoin .
when the price get increase speedly then you are in profit but when the price goes sharply down then make purchase of bitcoin in small installment ,in this way you will remain in profit during bitcoin trading .

A well programed bot will not need a lot of adjustments since the economic theory is not going to change every week, the only adjustments needed will be if the API changes.

market changes.
you can make it less optimized so it will work in many market cenarios, but than it wont make much money

If basic economic theory is the only requirement for becoming a professional trader then there would not be any trading challenges as anyone could learn and become expertise with economic theories.

The basics of economic alone will never help anyone to make profits from trading, but we must need to react different market situations accordingly, otherwise a trader will be thrown out of market very soon. So I believe, coding a bot to cover 'all' market conditions is not practically possible.

you will never learn a lot from trading if you are just using a bot , so if you are new to trading it is much better to start on manual trading it will help to boost your experience and improve your knowledge in this type of business if you really want to make profit because there are so many things that you need to consider when it comes to trading .

I never said anything about basic economic in my post, even in th changing situations of the markets the right move to make is still founded in sound economic theory, so a good bot could adjust its behavior accordingly.

for how long do you observe markets? nothing to do with economic theory.

What language do you want to use for your bot coding?