Trading Automation: Ideas, Needs, and Implementations

[EarnOnVictor]

I never knew the importance of trading automation until I started it myself. Despite trading for over 20 years in the manual way, I'm now lazy to even analyse the chart again, despite still achieving the same goal in a better way. TBH, this is what many traders should look into, and this is beyond why brokers/exchanges have put in place for us, but what we can coordinate as a combined units into one system, which entails everything possible that a trader could need, especially the entry/exit logic and the management thereof. This also helps our psychology.

Could you share a bit more about your experience?

How did you get started?
When did the idea of automating your trading first occur to you?
Did you encounter any difficulties during the transition?
Also, does your automation script run on a server, or do you run it locally on your own PC or laptop?

1. Like anyone else in my old school era, I started with the reading (theory), then graduated to the demo trading (practical), and after a year+, funded my account, which I lost. I continue losing money for many years and continued learning more in the process. I never leave trading ever since then.

2. I recently conceived the idea of automated trading. Though I knew of it from day one, I didn't give it a chance, particularly for the fact that I was not a coder, and of course, I didn't want to trust anyone with my logic.

3. Of course, transitioning from a 100% manual to an automated trading can't be without issues. There were a lot of bugs and optimisations to fix and do respectively. Thankfully, I ran it extensively on a demo account to avoid catastrophes to my money. There are many, but just one example, there was a time when one of my EAs was just opening and closing orders repeatedly and lost a huge amount doing that despite being using that same EA for several months. I corrected it and had been working fine. There were over 50 different improvements/optimisations, so it wasn't easy, and it tooke.many months. Though the first prototype was within a few days.

4. I am a Nigerian, so I can't depend on my local terminal, electricity and Internet. I pay for some subscriptions monthly to host them.

[Jatiluhung]

Actually, it would be very helpful if there were a bot in the futures market that could automatically adjust stop-loss positions, specifically, I’d like a tool that can automatically move the stop-loss level. For example, when we’re in a profitable position and the price still has the potential to keep rising, the stop-loss level could automatically move to a point that still gives us a profit. Because sometimes we’re too lazy to manually adjust our stop-loss levels when we’re in a profitable position. Or sometimes we just forget.
In trading bots, there are actually settings that are somewhat similar. But they don’t fully meet my expectations.

And actually, exchanges like Binance already have this feature, called a trailing stop. but for some reason, it still doesn’t quite meet my expectations. I want something more responsive and faster.

But I just searched on Google and found 3Commas & Cronix, which seem to support trailing stop-loss features. Has anyone tried them?

[Criptano]

Actually, it would be very helpful if there were a bot in the futures market that could automatically adjust stop-loss positions, specifically, I’d like a tool that can automatically move the stop-loss level. For example, when we’re in a profitable position and the price still has the potential to keep rising, the stop-loss level could automatically move to a point that still gives us a profit. Because sometimes we’re too lazy to manually adjust our stop-loss levels when we’re in a profitable position. Or sometimes we just forget.
In trading bots, there are actually settings that are somewhat similar. But they don’t fully meet my expectations.

And actually, exchanges like Binance already have this feature, called a trailing stop. but for some reason, it still doesn’t quite meet my expectations.
I want something more responsive and faster.

Oh, thank you! This is a very interesting and highly relevant topic.
We can absolutely automate position management.

Here are a few possible ways to implement a trailing stop:

• Classic trailing stop — a fixed distance from new highs.
• ATR-based trailing stop — the distance depends on volatility, for example, ATR(7) multiplied by a coefficient.
• Trailing stop based on candle lows — the stop follows new higher lows at a certain distance, making it possible to stay in long-lasting trends.
• Another option is not to move the trailing stop immediately, but instead to base adjustments on the last two completed candles, helping to filter out short-term spikes and false triggers.

Implementing functionality that supports solutions like these is entirely feasible.
It's an interesting challenge, and if there is genuine demand for it, I could take on the task of developing it.

I would also add a break-even mechanism to the position management system, with customizable conditions.
For example, once the price moves 2% in profit from the entry point, the stop could be moved to 0.5% above the entry price, after which the trailing stop logic would take over.

[SquallLeonhart]

While I respect anyone who wants to do this, specially with the rise of AI and how it will impact the trading world big time, I still do not prefer it. I understand if you make an AI, from scratch, that is perfect trading tool, then it will help traders a ton. But I also have a belief that if we all used the same tool, then it would not work. Because it will tell us there is opportunity to make money somewhere, and if we all do it, then it will not make profit at all, eventually some of us will fail. I just want to be opposite of that, not with that.

Trading automation must be a dream for every trader and for my self as well but practically a set of programming code cannot handle all the situations which are demanded by the market. Even experienced human do fails then expecting some codes to withstand and do profit means almost impossible task in my understanding.

[Emitdama]

Actually, it would be very helpful if there were a bot in the futures market that could automatically adjust stop-loss positions, specifically, I’d like a tool that can automatically move the stop-loss level. For example, when we’re in a profitable position and the price still has the potential to keep rising, the stop-loss level could automatically move to a point that still gives us a profit. Because sometimes we’re too lazy to manually adjust our stop-loss levels when we’re in a profitable position. Or sometimes we just forget.
In trading bots, there are actually settings that are somewhat similar. But they don’t fully meet my expectations.

And actually, exchanges like Binance already have this feature, called a trailing stop. but for some reason, it still doesn’t quite meet my expectations. I want something more responsive and faster.

But I just searched on Google and found 3Commas & Cronix, which seem to support trailing stop-loss features. Has anyone tried them?

I don't think that was laziness but rather that was greediness already if we are not taking actions or adjusting some things in order to possibly reduce our risk and still be on the up side. But if we are genuine and are truly away from keyboard, then yeah that this is one of the good reasons on why they should add such an option.

It is just like it is too good to be true already and we are now going to be unstoppable if such a bot have been improve on that level, which may be the reason on why they don't make it possible up until now. Anyways, mate, you still can try to give a feedback or tell them your suggestions like this to them and see if what they can do about it .

[CONVOAI]

I think the monitoring part is more important than execution in trading automation because many traders have good strategies but it is not possible to be in front of the screen all the time. A system that monitors portfolio, open positions, funding rates, liquidity changes and unusual volume activity and sends Telegram or mobile notifications can be useful. This will allow the trader to quickly catch important changes in the market and reduce unnecessary screen time because many times good setups are created when we are not in front of the chart and later we see that the opportunity has been missed. If the system can filter important changes and alert us then there will be no need to sit and watch the chart all the time and trading will also become much more manageable.

[Criptano]

While I respect anyone who wants to do this, specially with the rise of AI and how it will impact the trading world big time, I still do not prefer it. I understand if you make an AI, from scratch, that is perfect trading tool, then it will help traders a ton. But I also have a belief that if we all used the same tool, then it would not work. Because it will tell us there is opportunity to make money somewhere, and if we all do it, then it will not make profit at all, eventually some of us will fail. I just want to be opposite of that, not with that.

Trading automation must be a dream for every trader and for my self as well but practically a set of programming code cannot handle all the situations which are demanded by the market. Even experienced human do fails then expecting some codes to withstand and do profit means almost impossible task in my understanding.

Thanks for your opinion. I understand you.
And at the same time I'm not talking about AI trading systems that come up with who-knows-what on their own.
I'm talking about automating processes that you already understand well, such as position management, as I described in my previous post.

If you already have clear criteria for entering trades and placing stop losses, then you already have the foundation of a working trading system —
one that can free you from having to sit in front of your computer all the time. You'll be able to spend more time with your family or focus on other important things.

After all, sooner or later, successful traders tend to move away from chaotic, emotion-driven trading
toward a clear set of rules and disciplined execution. Those rules can be formalized and automated.

Please take a look at the story EarnOnVictor shared here:
https://bitcointalk.org/index.php?topic=5585403.msg66834440#msg66834440

This is exactly the kind of situation where automation makes sense: a person learns, gains an understanding of the markets,
becomes consistently profitable, formalizes their trading rules, and then builds automation around them.
From that point on, they mainly supervise the process and periodically refine the system as unforeseen situations arise.

[Criptano]

Well, if I had the opportunity, I would want the RSI and MFI to cross 50 only if the price bounces to the 200 EMA or near the 200 EMA and I can automate trade only when the market is trending.
Using the RSI and MFI is to filter out my bad trades, but for me this works manually with price action and analysis, but I do not know if it would work if I made it to automate it. Someone on the ForexFactory forum already made a bot of this but only for forex with a good result, but I do not know if this one will work on crypto, but for me, when I trade it manually, I get a good result. Maybe it would work if the price action could be included in the script, but I do not know if it's possible.

Could you describe your trading rules as precisely and comprehensively as possible?

Specifically:

• What are the exact entry conditions?
• Do you trade long positions, short positions, or both?
• What are your exit rules?
• Take-profit /Stop-loss
• Trailing stop (if use)
• Move-to-break-even conditions (if use)
• Which timeframe should be used?
• Which trading pairs should be traded?

Based on that information, it would be possible to develop a strategy tester and evaluate the viability of the system specifically in the cryptocurrency market using historical data.

Could someone please reach out to Alphakilo via PM and ask him to reply to my  message here:
https://bitcointalk.org/index.php?topic=5585403.msg66830237#msg66830237
Unfortunately, as a new member, I can't contact him directly because of the forum's messaging restrictions.

[shawonngp]

I am not using automation in trading; I would not even like to use it. But I have traded several times with AI's help, which I did not find effective because AI is not always able to provide accurate data. No matter which one you use, AI or bots, it is very dangerous to trade by relying on them. If profit could be made in trading through bots and AI, then everyone could make much more profit, and there would be no need to do their own research & skills. There is no way to make trading so easy. Of course, I am now focused on investing, especially in BTC, if altcoin trading seems too risky.

[Criptano]

Strategy Tester with Simple Entries and Advanced Position Management
https://www.tradingview.com/script/D9IDQR18-yogsvet-cross-ema-advanced-exit-management/

An essential part of trading is testing ideas and optimizing parameters for a specific trading pair,
since all assets have different volatility characteristics. For this purpose, strategy testers are built.

As an example, I created a simple entry system (EMA crossover) combined with advanced position management,
including configurable break-even logic and adaptive trailing stops.

Result: >40% in 20 days with fixed position sizing and initial leverage →


How to use the Strategy Tester on TradingView:

• Open the strategy page on Tradingview. Click "Add to favorites"
   
• Open the trading chart. Select the 5m timeframe
   
• Click "Indicators" → "Favorites" and add the saved strategy to the chart
   
• Click the settings (gear icon) next to the strategy name and experiment with parameters.
  At the bottom of the screen you will see the Strategy Report. On the chart, you will observe how the strategy performs.

Strategy snapshot:


Key observations and conclusions from using this tester:
Using just one relatively simple tester, several valuable insights can be derived:

• Proper position management can be more important than complex entry algorithms.
   
• The commonly used 3:1 take-profit to stop-loss ratio is often a misconception.
  Price fluctuations make it statistically more likely to hit a 1R stop than to reach a 3R target.
  Test this with break-even and trailing disabled.
   
• Break-even logic is not only about when it is activated, but also where the stop is moved.
  It does not necessarily have to be at zero — in many cases, a non-zero level performs better.
   
• Trailing based on price lows/highs filters market noise better than classic high/low trailing.
  Adaptive volatility-based trailing (ATR-based) also improves results compared to fixed trailing distances.
   
• Activating break-even or trailing too early can reduce overall profitability.
  Trades need enough room to “breathe”.
   

This strategy follows a clear algorithm and can therefore be used in automated trading systems.

Feel free to share your test results, optimized settings on other trading pairs, and entry setups you would like to explore.

[CryptopreneurBrainboss]

I do not like using bot to trade, although I know that many people usually used that to back themselves up, but whenever the loses come they cannot control it , mistakenly if the bot has technical issues loses is very easier for that person. If I will advise person about bot is that do not use a higher amount to trade so that the loses can be regulated and control. It's better to trade personally without deploying bot that could make you lose. Although, you can also use your stop lose, and take profits so that if the market goes against you, you would be able have profits or even reduces how much you should be losing while trading.

Making use of bots aren't bad but those making use of it have to understand perfectly how it works if not they won't enjoy it, when a trader makes use of a bot that does not mean they increase their chances of losing since there is always going to be an opportunity to put a stop loss on the bot and that'll end the trade when you are losing up to that amount that you set for yourself so no difference here. What makes both efficient is that since you can't be online 247 to monitor the market and then trade, bot will do that easily for you and it's quite enjoyable when you know how to make use of a bot properly. Trading automations are the newest way of trading, although I still find the traditional way of trading quite fascinating instead of relying on artificial intelligence to do my analysis for me and then make trade on my behalf. Trading bot have so many fakes (scam) available in the market so we just have to be careful when choosing the right one to patronize.