Bitcoin Forum

Problem: whiplash and stop losses.

I expect everyone has experienced this; you set your stop-loss only for the market to wick you in/out of your position and then promptly rebound in the opposite direction. As a case in point, I recently set a trading view alert for btc crossing a certain value which it did 5 times in one trading day. Very common at inflexion/pivot points on the market. And good luck manually managing that.

So what I'm looking for is a bot (or indeed anything relevant) that would allow me to set a stop-loss as a risk on/risk off point and buy or sell accordingly, not once but as many times as necessary.

Any thoughts appreciated. Sorry if this isn't the right forum.

I guess you are looking for some bot with can follow signals on graphs like crypto cipher but bot that has implemented that I'm not sure. I know there are a lot of bots people are making them every day... I guess you will need to try them until you find something that fits your needs.

Whiplash? I am first time hearing it which led me to learn something new today in trading terminologies.

There are lots of trading bots are available in crypto trading markets but not sure any of them is available to customize according to our strategy; most of the bots are coming up with their own pre-set strategies; you may be allowed to alert few of the settings but not the entire algorithm. If you are having some knowledge in coding then you may try for implementing in any of mt4 or mt5 platforms; but not sure, after getting into crypto space I never got chances to touch them again.

One of the popular trading bot in the forum is Gunbot. This is the link to their announcement thread: https://bitcointalk.org/index.php?topic=1715214.0

There's a description that might help you understand if this the bot that you're looking at and will satisfy your needs through the explanation on the first post of that thread.

I don't get what you want? What exactly strategy/indicator and signal you use when automating trading?

Anyway, there is a big list of trading bots here on the forum.

You can check them from this thread below

- [BIG LIST] Crypto Trading Bots (https://bitcointalk.org/index.php?topic=5278392)

Another source of the crypto trading bots can be found from here

- Awesome Open-source Crypto trading bots (https://github.com/botcrypto-io/awesome-crypto-trading-bots)

On which exchange do you plan on using it? Does your exchange manual stop-loss not working properly for your strategy?

If you're looking for a free and open-source trading bot, Zenbot is probably one of the best choices, but you'll have to manually set it up.

I am no expert on trading bot, there is probably one exactly for your needs. However, I would be very careful when trusting a bot. We don't know how pure his intentions are and if he really will do the things that were promised. Your problem with the stop loss happened to me many times. I think we can solve the problem with he have dynamic stop losses that change with the price levels. Let's say our coin drops 5% in one day, but we are convinced that it is still a good coin. We should then increase our stop loss to not directly sell the coin but rather leave a bit more room for another drop.

I think he actually meant a whipsaw, which is a rapid movement of the market that goes against the trend, this is also very common when the market is ranging and your system can get you in and out of the market several times in a single day.

Obviously you do not want that to happen to you but that is just the way it is, if someone wants to avoid this happening to them as often then they need to adjust their stop loss and their unit size so their risk remains the same and the whipsaws they go through diminish, but if you do this your profits are bound to go down as well as a consequence of diminishing your unit size.

I think first we have to determine our trading goals whether short-term or long-term, for daily trading I think it's not wise if we shift the stop loss when the price is running against the trend, for me if we place SL below the support line then if it hits we will wait again pending orders at the next support.

Well,  certain troubles when it comes to setting up your stop loss is quite a problem specially if you have just entered the market and having difficulty managing your funds in trading and that can somehow be lessen by thorough research and analysis with regards to what you must do with different situations based on technical analysis and your own analogy. If it cannot be helped, trading bots might be a good option to be done but as much as possible dependency on trading bots is not required for you sometimes must learn it the hard way to be able to acquire knowledge and experience that can help you all throughout your trading journey.

Thanks for the replies.

For the record I use Deribit. I'm basically hodling with slight leverage. I want to be risk on above X and cash or delta neutral below.

This is such a common and obvious problem I'm astonished there hasn't been a solution to it already.

That is precisely why there is not a solution for it, we must recognize that predicting what the market is going to do every single time is impossible so the only way to realistically deal with this is to reduce your unit size so you can make your stop loss wider, this will reduce the number of whipsaws you go through but as I said this will reduce your profits as well as you use less money in each one of your positions even if the overall risk remains the same.

However the fact that you are using leverage explains a little bit why you seem to have more problems with whipsaws than normal, as you increased your risk by using leverage it is likely your only choice was to reduce the margin of your stop loss, making your system more susceptible to whipsaws, and as a result of this you find yourself out of the market constantly because of it.

Lesser used term but I think it denotes the sharp movement in opposite directions. You see a coin moving up but abruptly stops and starts moving in the opposite direction, that is what whiplash can be defined as.

Bots are good for trading but I don't think even bots can save from sharp movements. What a bot can do is surely something we can do manually too, so first, try and succeed with your strategy by practicing it manually and once you feel that you have learned it and now needs automation then you can buy some bots and implement your strategy.

In simple words, a bot cannot earn you unless you have learned how to earn manually. Bot will just automate and sharpen up your manual tasks.

You can find a lot of Trading Bots in the forum and but just to remind you that their functions still relying on you. You will say that could automatically perform stop-loss, that depends on your command. However, it wasn't all the time you will depend on bots, it is also a need for you to check them from time to time so you were also aware of the market trend, and also you could able to see the status of your trading.

Still not 100% sure what you are trying to say maybe because I am not well versed with trading terms. But from what I understand you are trading with leverage and want to buy at a particular price and sell it once it drops to a certain price. If that is actually the case I have done it at Binance myself and it is pretty easy you just place limit orders for buy and sell.

A free trading bot, thanks for sharing not sure if he needs it but I will certainly check it once later today because most of the bots I have used in past were paid and some even had a recurring fees which is frustrating as I don't earn much with trading right now.

basically trading using bots is not wrong. but sometimes many people want to easily earn money without them wanting to learn. so what they have in mind is calculated profit. but in fact manual trading is much better, so if we keep using bots and understand manual trading, the results will certainly be maximized

I see it the same way and "back then", when I started with Tradingbots, it was the same for me. I wanted to earn quick money with it and I didn't care in principle how the bots worked. But since I didn't want to spend any money, I had to deal with the open source bot Gecko and "feed" it manually with strategies. So you learn a lot about indicators and in which situations they are helpful - and in which not.

That would be now also my tip @OP, Gecko has a very large and extensive community, which constantly expands this with many trading strategies. I would be surprised if your desired trading behavior would not already exist for Gecko!

https://gekko.wizb.it/ (https://gekko.wizb.it/)

Gecko itself isn't maintained anymore but the community is still very active, there are already some very good forks on Github eg.