Guide How to Create a Bitcoin Trading Bot

[ppblockchain]

Before any programming, we must first find a viable strategy to use to play the market and model the bot after. For this article, I chose to use a simple volume-based trading strategy.

The strategy is simple: when volume peaks, there is more interest in the market, and this means the trend with the volume peak will probably continue in the future.

In the image below, three distinct peaks in volume are circled. The arrows represent that even if the peak in volume is followed by a dump, it will usually rise higher than current market value in the near future, as the trend is still upwards.

Read more :  https://paperblockchain.com/how-to-create-a-bitcoin-trading-bot-in-10-minutes/

[beerlover]

Strategy should be more important for profit making from trading rather than trading with a bot.

I mean you want simply profits or you want to save time for your entertainments still you need profits from trading. If you focus only profits then you may test your strategy manually and then start trading in real with small capital. This way there could be 99% chances to crack profits.

Bots cannot withstand against all market conditions. Even your strategy is good, it may get failed when there will be any drastic changes in market conditions due to any negative news like hacking in a major exchange or wallet provider. If you trade manually you may exit simply at your stop-loss. (Bots too may exit at stop loss but there could be chances to jump around exit levels.)

[BartS]

Before any programming, we must first find a viable strategy to use to play the market and model the bot after. For this article, I chose to use a simple volume-based trading strategy.

The strategy is simple: when volume peaks, there is more interest in the market, and this means the trend with the volume peak will probably continue in the future.

In the image below, three distinct peaks in volume are circled. The arrows represent that even if the peak in volume is followed by a dump, it will usually rise higher than current market value in the near future, as the trend is still upwards.

Read more :  https://paperblockchain.com/how-to-create-a-bitcoin-trading-bot-in-10-minutes/

You are correct when you say that before any code is written you need a strategy, but you need to verify that your strategy works as well, and for that you need to paper trade your system against many markets and see if you can profit in all of them, only once you have verified that it works then you can build your bot, however many of the strategies that you will find on the Internet are losing strategies so it will take you a while before you find a system that works and that can be traded by a bot.

[BitMaxz]

No strategy added from the article this bot will be useless you should add some trading strategy so that other users don't need to use paid trading bot like gekko trading bot.

Check the list of gekko strategies from here https://gekko.wizb.it/docs/strategies/introduction.html
and maybe it can help you to have some idea to create a strategy from your trading bot. I already tested gekko trading bot it is free and they have complete guide documentation to help you build your own free trading bot with few strategies.

[adroitful_one]

This is the first time I've heard of PineScript. I'm going to have to check it out. Obviously, this isn't a real bot since you don't have any API keys to connect with the exchanges and I'm not even sure PineScript allows this. However, if I could find some way to pull the information from PineScript and manipulate that with my own code, this may be just what I have been looking for. I'm sure it will probably be better than my Bittrex bot I coded and run in php on my Raspberry Pi, thanks.

[BitHodler]

I, myself, am trying to create trading bots whether they are manual or auto.

Isn't the whole purpose of a bot to trade automatically? Not sure what bot trades manually? Manually means it would require human input, which then makes it kinda obsolete because you can trade manually yourself.

I am morely focused on bitcoin and same as you, I try to follow the huge volumes.

Volume is just one metric to look at when trading, not something that should be the fundamentals at which your bot's strategy is based on, especially with how volumes nowadays are easily faked on most exchanges.

Also, if enough bots use volume as basis, it provides an easy point of failure because whales can simply play with them and usurp every single penny the bot has to trade with. I wonder how much success OP had so far.

[AniviaBtc]

No strategy added from the article this bot will be useless you should add some trading strategy so that other users don't need to use paid trading bot like gekko trading bot.

Yes, that's true. Strategies are always essential when you do some trading. Just make sure that it'll be effective in the end. Being knowledgeable in trading helps you to become more successful and gain more profit. And creating trading bot is also important.

[micalith]

I, myself, am trying to create trading bots whether they are manual or auto.

Isn't the whole purpose of a bot to trade automatically? Not sure what bot trades manually? Manually means it would require human input, which then makes it kinda obsolete because you can trade manually yourself.

I am morely focused on bitcoin and same as you, I try to follow the huge volumes.

Volume is just one metric to look at when trading, not something that should be the fundamentals at which your bot's strategy is based on, especially with how volumes nowadays are easily faked on most exchanges.

Also, if enough bots use volume as basis, it provides an easy point of failure because whales can simply play with them and usurp every single penny the bot has to trade with. I wonder how much success OP had so far.

Well, for a fully auto trade bot, there are plenty of things that we should consider and we may miss some points while having a auto-trade bot. I meant manually by the final decision that is given through humans. Of course the indicators that I will use will be auto, I can't, as a human, process such data. So, I am using AI and other algorithms for these and making the final decisions accordingly. It is possible to have a auto-trade bot for sure, the ultimate goal of mine is to have one

[th3nolo]

No strategy added from the article this bot will be useless you should add some trading strategy so that other users don't need to use paid trading bot like gekko trading bot.

Check the list of gekko strategies from here https://gekko.wizb.it/docs/strategies/introduction.html
and maybe it can help you to have some idea to create a strategy from your trading bot. I already tested gekko trading bot it is free and they have complete guide documentation to help you build your own free trading bot with few strategies.

Quantconnect is the best website out there to learn about algorithmic trading, with the UX of Codecademy, if you're interested in learning how to develop your algorithmic strategies you should check the links below.

https://www.quantconnect.com/terminal/#bootcamp
https://www.quantconnect.com/alpha

[BartS]

I, myself, am trying to create trading bots whether they are manual or auto. In my opinion, in order for a bot to be succesfull, we need to do different things than the mass. Bitcoin has the most volume so if there is a volume, there will be a good opportunity to make profits. I am morely focused on bitcoin and same as you, I try to follow the huge volumes.

One of the many problems for those that are developing a bot to trade the markets is that many of the strategies they use are completely subjective, if you want to create a bot then you need to trade in a systematic way, while this is boring it is the best way to see if your system works, unfortunately many people never backtest their systems and begin trading with strategies that do not make money over the long term, make sure that does not happen to you since there is no point to let your bot trade the markets if you lose money.