Bots to trade cryptocurrency
In 2017, all of a sudden began to gain popularity trading bots for cryptocurrencies. The reasons for the increasing interest in these programs are several: a General increase of interest in trading as a mean of earning money online, HYIP cryptocurrency December 2017, the drop in profitability of mining in 2018, due to which the miners began to look for new ways of earnings. Working with cryptocurrency bot is no easy task. Some programs require fine tuning, knowledge of the basics of trading and are quite expensive, others can be set free. Understand the principles of operation of these programs and highlight the shortcomings of popular cryptonote 2018.
The types of cryptocurrency bots
Separation can be done in several ways. Degree of autonomy:
- A program, conducting transactions without human intervention.
- Programs that require the participation of a trader in a final deal.
In addition, the trading bots can vary according to the method of control:
- Telegrams bot for cryptocurrencies.
- The program with its interface.
Then highlight the program according to the method of earning:
- Arbitrage bot for cryptocurrencies. Such programs monitor the cost of the cryptocurrencies on all exchanges and earn on the price difference.
Example: the exchange Binance rate sale of bitcoin to the dollar is equal to $6700, on the stock exchange EXMO – $6685. The bot is buying BTC on EXMO and subsequent sale on Binance. The advantage of the program before hand deal lies in the speed of transactions. If you do not make a deal in time, it is possible to remain at a loss due to exchange fees.
- Shopping bots. This type performs more work – it needs to analyze information on the fluctuations in the price of a certain cryptocurrency pairs or multiple pairs, to follow a predetermined trading strategy.
That is such a bot is a real assistant of the trader and gives the greatest profit. Try to understand how it works bot for cryptocurrency trading.
Logic trading bot
The following example is a relatively simple strategy that uses only 3 input variables: highest bid price (Buy) highest price of the seller (Sale) and the daily volume of transactions in cryptocurrency (Market). Thus selected only those couples where Sale more Buy. Using the formula Rank = ((Sale – Buy) / Buy) * Market displays an output variable Rank which every cryptocurrency pairs.
The higher the Rank, the greater the interest income. Such a bot for cryptocurrencies is working immediately after startup as it does not require information on the history of trades. You must configure the bot. All programs differ, but in most cases the setting give the following options:
- The number of traded pairs. The bot can not take all the pairs in circulation, selecting only the most profitable.
- The minimum price of one lot in bitcoin. “Lot” in trading refers to the number of units of cryptocurrency.
- Minimum rate cryptocurrencies for trading.
- Minimum size of an order. Exhibited at the exchange, where trades will be made.
- The time of holding cryptocurrency that does not profit. This parameter is required as one of the tools of a loss.
- The minimum profit percentage based commissions of the exchange. Usually set between 2-5%. If you install less than 1%, deal will be held very often, but to give a minimum profit.
Algorithm trading contains the following items:
- First, the program checks for open orders. If you have them running close all orders.
- It then executes the query parameters for Buy and Sale of all cryptocurrencies, the system displays a list of crypto-currencies in descending order of Rank.
- Check your account balance.
- Removal from the list of those cryptocurrencies, for which the minimum lot size is greater than specified in the settings. This condition is required to ensure that the account is not hoarding the cryptocurrency, which will not be able to sell at a profit.
After that, the program checks if we can gain if to put the order at the Sale price.
- In parallel, the system checks the time elapsed since the last purchase of the cryptocurrency. If the interval is more configurable time setting, it order to sell.
- After issuing orders, the program proceeds to create buy orders.
The meaning of the work of the bot with this algorithm is that it takes the difference Sale and Buy liquid pairs it is his earnings. This type of trading is similar to scalping. When the market is not growing, there are small movements – they allow you to profit even in a falling market.
Again it is worth noting that this algorithm performs trading bot for crypto-currencies without indicators and technical analysis. The mechanism of the programs with these tools runs much more complicated and requires basic knowledge of trading for the settings of the bot.
Popular bots for cryptocurrencies 2018
It should be noted that free bots for cryptocurrencies in the vast majority are the product of fraud.
Good free programs exist, but their yield is much lower paid. Among the bots for the subscription, select the following:
- Bot Cryptorg. Price ? $30 per month. A great program for beginners, but without a wide array of settings – not suitable for professionals.
- Bot Swbot. Price ? $25 per month. The lack of normal wikis and learning – all the information you need to know in telegrams-channel and chat. The shortcomings are explained by the small age of the project in just 8 months.
- Bot Gbot. Price ? $30 per month per exchange, $100 – on all exchanges. The emphasis is on the console version, although it is now a graphical interface. There is no possibility of short.
- Bot ProfitTrailer. The price is €30 per month. The most expensive helper in the list during setup which can be broken down. Despite this, a large number of adjustable parameters is the main advantage ProfitTrailer. The program is perfect for professionals.
Except the bots, traders should also use tools like Tradedash, which show the transactions and allow you to work with 2 exchanges at the same time. Tradedash supports Bittrex and Binance.
Trading bot ? just a helper
As practice shows, bot for trading on the exchange of crypto currencies often do not meet the expectations of the beginners who do not want to spend quality time in learning trading. Without knowledge of the basics of technical analysis and skills to trade manually do not buy paid bots.