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Bot Strategy Guide

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Nathan Getty edited this page May 23, 2021 · 4 revisions

How do I use this bot in the best possible way?

There are no ONE config or setting that will work under all market conditions and timeframes. The market is chaotic in mathematical terms, hence unpredictable for the most. Users should tweak all parameters and config to suit their level of investment, overall strategy, risk profile and timeframe. This bot is a tool to support that, not replace it. It will do strictly what you tell it to do, removing he human aspect and feelings in its trading.

These are some general suggestions, and best practices to get you going.

Preparation

  • Strategy

    • Carefully develop and consider your general strategy.
    • Is it scalping, swing-trading, buy & hold or something else?
    • What is your risk profile, are you willing to take big losses for bigger gains, or do you want less risk and smaller gains?When should it buy, and when should it sell?

  • Time Frame

    • On what timeframe do you want to trade? Do you want a lot of frequent trades with small profits or less trades with bigger profits.
    • Are you looking at short, medium, or long-time intervals? Hourly, daily, or longer?

  • Coins:

    • What coins do you want to trade, and what coins corresponds best to your general strategy?
    • Big high cap coins with less volatility, or smaller cap speculative coins with high volatility?

  • General:

    • Is the 50- & 100-point moving average both sloping down on your selected timeframe? Do not start the bot, it does not short sell, and you will likely lose money.
    • The bot works best in an up-trending market.

Configuration:

  • Amount to invest:

    • How much do you want to risk in total? Divide this by the max number of coins you would hold and enter the figure in your config.
    • Remember to hold an amount of BNB in your spot account to pay for trading fees, also enable ‘pay fees with BNB’ in your account settings.

  • Number of coins, and what coins to buy:

    • How many different coins will you hold at any time, and how much will you invest in each coin?
    • You should only hold the number of coins allowed by your total investment divided by how much you will invest in each coin.
    • Update the ticker lists for the main program and any modules according to your coin selection.

  • Take Profit & Stop Loss:

    • Set your take profit & stop loss according to your strategy, adding trailing stop loss if needed.

  • Modules:

    • What modules exists that would support your strategy? Could some of them be modified to do this better.
    • If so, modify accordingly and enable them in your config.

Running:

  • Keep track of trades & market:
    • Monitor bot performance closely, make notes about its performance.
    • Is it not beating the general market or losing money? Is there any reason for this? Has the market changed, or could it be something else?
    • If you are not satisfied with its performance, revise your strategy, and start over with preparations again.
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