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Author Topic: a month of bot trading  (Read 69 times)
forestx (OP)
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August 02, 2022, 12:56:52 PM
 #1

I built a trading bot and have been using it on the BTC/USDT market for the last month  - no leverage
It has worked in the sense of it is profitable but not a lot and needs improvements
I need to look at moving stop loss and having a trailing stop loss but what I have noticed and I will do a full assessment this week is that you need as a trader limit opening trades in a flat market
In backtesting I tried to do this with an ADX indicator but it reduced the amount of trades too much. I dont know what the best tool for this I am looking at the squeeze momentum or an other volume indicator
The other issue you dont want to miss movements if the market does change or wake up

Another issue is large candles when your code opens a trade after a very large candle, problem all momentum is generally in the large candle and the market resets again afterwards. However I do have code to now to detect this
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Oshosondy
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August 02, 2022, 01:32:26 PM
 #2

I built a trading bot and have been using it on the BTC/USDT market for the last month  - no leverage
But should I tell you the truth, even if you do not use bot and you just buy or open position using the correct indicators, the market may not favour you, the market may totally be against you, but be expecting correction, but provided that you do not use too much leverage.

Leveraging can make a trader to panic and close position or sell at loss while over leveraging can result to fast asset liquidation.

In backtesting I tried to do this with an ADX indicator but it reduced the amount of trades too much. I dont know what the best tool for this I am looking at the squeeze momentum or an other volume indicator
Anything that helps to limit the position you open should be consider good if you make profit from it, but the profit can be little though but better than loss. I do not know much about the indicators you are talking about, I only know about the basics ones like MA, EMA, RSI and Bollinger bands. But if indicators fail, 1x leverage strategy do help.

Another issue is large candles when your code opens a trade after a very large candle, problem all momentum is generally in the large candle and the market resets again afterwards. However I do have code to now to detect this
Use RSI and Bollinger bands to check overbought Nd oversold market, but indicators can also fail. You are using 1xleverage strategy, even if indicators fails, patience makes the market to correct itself and the possibility that you will still make profit is very high.

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forestx (OP)
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August 02, 2022, 01:43:09 PM
 #3

I am thinking of using RSI or at least test to see if it helps remove trades in flat markets.
I am fairly happy with my one month stats but do want to improve them.
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August 02, 2022, 03:31:57 PM
 #4

I am thinking of using RSI or at least test to see if it helps remove trades in flat markets.
I am fairly happy with my one month stats but do want to improve them.

If it's easy enough to backtest you might be able to find indicators that represent volatility and volume too (maybe macd does this to an extent). A higher volume will probably lead on to higher volatility later on (if not already present) but may also change its direction.
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August 02, 2022, 03:37:06 PM
 #5

This is very complicated trading strategy because you are even considering impulse trading which might be turned into mess once your code failed due very quick movement of the market.

Why use the simple grid trading rather than use a complex condition on trading? The crypt market is unpredictable so you might end up applying multiple parameters and condition just to come with a bot that will be profitable at all times.

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August 02, 2022, 06:37:52 PM
Merited by mikeywith (4)
 #6

A month is a simple period to judge the experiment as success or failure, and you need to wait for a longer period, perhaps three to six months, before you analyze the results.
Obtaining accurate results from the averages will be difficult because they work in the long term and because in the recent period the controversy regarding reaching the bottom, or rebounding to the 30k levels has not been resolved, so all you have to do now is wait until the price settles in several price ranges, the fluctuations will be very slow Then your bot can achieve better results.

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August 02, 2022, 09:33:43 PM
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But should I tell you the truth, even if you do not use bot and you just buy or open position using the correct indicators, the market may not favour you, the market may totally be against you, but be expecting correction, but provided that you do not use too much leverage.


Are you meaning here that market trading is a game like trading? No if you do proper analysis and set up your analysis well then you should winning more than you are losing.


Leveraging can make a trader to panic and close position or sell at loss while over leveraging can result to fast asset liquidation.

This is one of the reason that traders are cut up in difficult trading situation and when they low liquidity, they begin to panic and close market that will later become a winning market.
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August 03, 2022, 03:22:37 AM
 #8

A month is a simple period to judge the experiment as success or failure, and you need to wait for a longer period, perhaps three to six months, before you analyze the results.
Obtaining accurate results from the averages will be difficult because they work in the long term and because in the recent period the controversy regarding reaching the bottom, or rebounding to the 30k levels has not been resolved, so all you have to do now is wait until the price settles in several price ranges, the fluctuations will be very slow Then your bot can achieve better results.
I think a way around that is for the OP to download the price history of the assets he wants to trade to a spreadsheet and then use his algorithm to trade that data and see if his bot is successful over the long term, if it is then only some minor adjustments could be needed to make it more profitable, but if it is not then it could be the time to comeback to the drawing board and try to find what it is wrong with the strategy the bot is implementing.
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