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Automated

Why using automated trading? #1There are a couple of reasons why to use automated trading, like better risk management, human error, easier to diversify, and Psychology In this post, the focus is on psychology. Here are some of the cognitive biases that affect trading: Loss aversion - the tendency to prefer avoiding losses to acquiring equivalent gains. It feels much worse losing $100 than the joy from earning $100. (A huge topic, the researchers got the Nobel prize for this) Sunk cost - the tendency to treat money that already has been committed or spent as more valuable than money that may be spent in the future. In trading, this effect with loss aversion making people not cut their losses. When we enter a trade we know that a loss can happen, if the losses are not cut the rest of the money in the account can be lost too. The disposition effect - is an anomaly discovered in behavioral finance. It relates to the tendency of investors to sell assets that have increased in value while keeping assets that have dropped in value. Traders tend to lock in gains and ride losses. Recency bias - a cognitive bias that favors recent events over historic ones, in trading, a streak of losses can demoralize a trader even if he had a good run for a long time. I don't know of a system that works 100% of the time. There are more psychological effects, but those are the main ones. Using automated trading, allows traders to reduce these effects on trading because the stocks are chosen in advance, the risk is defined, the entry and exit are calculated and executed by the algorithm (Unless rare events are happening). In the past, I was sometimes afraid of entering a good trade or cut my loss quickly, due to these effects and wishful thinking that the price will do what I want.
AMEX:SPYEducation
by ZoharCho
How Profitable Is UMA's Recovery?After reaching the important support level between $18-$20, UMA started rebounding. Let’s see how much potential profit UMA could bring us if we bought in now! Backstory: UMA’s previous strong growth was mainly due to an announcement regarding the arrival of the uSTONKS synthetic token. uSTONKS tracks an index consisting of ten stocks that are most commented on r/wallstreetbets. Wallstreetbets is a Reddit that gained popularity after pumping certain stocks (such as GME and AMC), making hedge funds lose billions of dollars in a short squeeze. Recovery and Potential Profit When the hype regarding uSTONKS started to die down, UMA’s price began descending. The price eventually reached $17, or 60% lower than the all-time high. Since then, the token has consolidated for a while, and now it looks like it is trying to start a new uptrend. If UMA were to recover to its all-time high, it would mean a 110% increase in price, which would essentially more than double your funds if you were to invest now. A minor resistance on its way to a full recovery is the $24 price point. Breaking above $24 significantly would probably mean that UMA is attempting to reach its all-time high again. Uncorrelated: One excellent aspect about UMA is that it is not as influenced by Bitcoin as the rest of the market. For example, when Bitcoin was trending strongly in October and November 2020, UMA wasn’t moving much. The token made its most substantial moves when it had positive news. Disclaimer: We do not give trading recommendations; we only break down potential trades. Always do your own research before entering any position.
Long
by cryptohopper
3
Mean-reversion - OVERBOUGHT - SHORT - USOIL WTIGreetings folks, Price has pierced through the standard setting bollinger band and my mean-reversion system has indicated a setup. The trading system with a preset 2:1 profit to risk ratio for this asset has historically: 116 trades 31 %/R returns 42 % winrate Do note that there is a strong resistance just above at $64, highlighted by a user in my previous post! Do let me know if I should expand the assets and timeframe of ideas that I share. Cheers, PineConnector
TVC:USOILShort
by PineConnector
Mean-reversion SHORT - US100/NASDAQGreetings folks, The tech index has been rising quite sharply since end of last Friday, forming a few large and strong bullish bars. A pin was formed, though small, at the upper bollinger band with the default 20 period and 2 standard deviation settings. My trading system recommends a short at the low of the pin with the SL be at the high of the pin. The system historically has a 36% winrate with a 12(%/R) returns for the past 132 trades when locking in 2R (or 2x profit to risk). Cheers PineConnector
UShort
by PineConnector
4
Bitcoin Enters a Consolidation PeriodAfter an astonishing breakout of the $20,000 resistance, Bitcoin appears to have entered a consolidation phase between $22,000 and $24,000. Consolidation Importance A bull market without any correction or consolidation is like a building without a foundation: it is shaky, and can collapse at any time. Therefore, consolidation helps bring stability to the market. When an asset is consolidating around a price level, that price level becomes important. Thus, the $22,000 and $24,000 price levels will likely act as support or resistance long into the future. The Hourly Chart Although we usually use the 1 day or 4h chart to showcase the current trend, the 1h chart is also among the most important timeframes. Many swing traders identify the trend on the 1 day and 4h chart, and use the 1h chart to time their entries and exits. On the other hand, intraday traders use the 1h chart to identify the trend direction, and then time their entries and exits on the 5 minutes and the 1 minute chart. Therefore, the hourly chart stands as the bridge between swing traders and day traders, making it one of the most used timeframes. Generally, the more popular a timeframe is, the more reliable it becomes. The 150 EMA, which works well on the 4h chart, also works well on the 1h chart, albeit slightly different. On the 4h chart, this indicator can be used to point out the long term trend, and by long term we mean the trend of the next 1-6 months! On the 1h chart the 150 EMA can effectively determine the medium-term trend that usually lasts between 1-6 weeks. If the price starts hitting it sporadically in a short period, it may indicate that the uptrend has come to an end, and we are in a ranging market.
by cryptohopper
Gunbot Backtesting Automated Trading on BTC-XRP with +36% profitGunbot Backtesting Automated Trading on BTC-XRP with +36% profit Gunbot Backtesting Gain-Gain 15 min strategy on BTC-XRP - +36% in Profits! What's This Chart About ? This is a Backtesting result for the Gunbot trading bot Gain-Gain Strategy (plus additional custom confirming indicators) Coin-pair : BTC-XRP Trading on: Binance Gunbot Strategy : Gain-Gain Estimated Profitability (LONG | Buy+Sell): ~ +36% (Based on the last 21 days of trading history) Gunbot Strategy Specs: PERIOD = 15 BUY_LEVEL = 0 GAIN = 6 MFI_ENABLED = true MFI_BUY_LEVEL = 45 MFI_SELL_LEVEL = 60 MFI_LENGHT = 20 RSI_BUY_ENABLED = true RSI_BUY_LEVEL = 45 RSI_SELL_ENABLED = true RSI_SELL_LEVEL = 50 RSI_LENGHT = 20 Optional Gunbot Strategy Settings (NOT included in the above backtesting chart): - activate the DCA / Dollar-cost-averaging function in your Strategy settings ( this would re-buy 50% of the invested capital, each time the price drops 2% with a watching trigger starting when the price is at bought price minus 0.5% ). - The CU_CAP_COUNT is the number of times Gunbot will trigger the DCA trading logic.Set accordingly. DU_CAP = 0.5 DU_CAP_COUNT = 5 DU_BUYDOWN = 0.5 DU_METHOD = 2 Scripts used : Allanster's Gunbot Deluxe Tuners BE www.tradingview.com Automated Trading Bot used : Gunbot Ultimate thecryptobot.com _______________________________________ Gunbot is a Trading automation software for crypto-currencies . Gunbot works with following markets : Bitmex, Poloniex, Bittrex, Cex.io, Binance, Coinbase Pro (GDAX), Kraken, Bitfinex, Kucoin, Cryptopia, Huobi . Available Trading Strategies in Gunbot 20 ADX | ATRTS | Bollinger Bands | Bollinger Bands (TA) | EMAspread | Emotionless | Gain | Ichimoku | MACD | MACDH | PingPong | StepGain | SMAcross | Trailing stop – stop limit | Time series analysis + more _______________________________________ DISCLAIMER: By using this script, you agree to the 'Terms of Use' at TheCryptoBot.com, as presented on our website (TheCryptoBot.com) and below. This script is strictly for individual use and informational purposes only. Any information provided on this website, or, via our website, or, via our profile, or via emails, is not to be considered legal or investment or financial advice. Investments are made at your own risk. TheCryptoBot.com is not responsible for any losses you may incur.
by TheCryptoBot
SNX Maintains a Bearish OutlookSynthetix Network (SNX) has been one of the most profitable investments this year. However, the token is now facing a bearish outlook. Recap: The Synthetix project is among the largest exchanges in decentralized finance. They have partnered with ChainLink to bring information about asset prices to blockchain without the need of a central party. Synthetix allows its clients to trade cryptos, currencies, precious metals, stocks, and other assets in the form of ERC20 tokens. This innovative system enables clients to "bet" on an asset's price without actually holding it (similar to CFDs). SNX on the Chart SNX rose to its all-time high of $7.75 on September 10, marking a 540% growth from January of this year. However, for the past three weeks, the token has maintained a bearish outlook comprised of lower lows and lower highs. An adequate strategy to identify the short-term direction in the crypto market is the 10 and 30 Exponential Moving Average (EMA) crossover. When the 10 EMA crosses over the 30 EMA upwards, a buy signal is given, and if it crosses the 30 EMA downwards, a sell signal is given. This strategy provides many fake signals in a ranging market, and you shouldn't rely solely on it. However, when the market has a clear direction, the strategy works well in identifying the trend. We have received a bearish signal from this strategy on September 30th. If the price is unable to break the red trendline we drew, then we could use it as confirmation together with the bearish crossover of the 10 and 30 EMA that the token will continue selling off. There has been a reliable support between $3.8 and $3.5, which caused the token to bounce twice. If the price reaches that level again, then there is a strong chance that the token will bounce, especially if the general markets turn bullish. If that level breaks, then we can expect the price to reach the next support level at $2.75.
by cryptohopper
3
The Different Ways To Trade The StochasticsCryptohopper Newsletter The market has been very volatile over the past month with Bitcoin crashing 65% to 3,800$ . The price has since made an astonishing 80% recovery in one week from March 13th until the 20th. Following the recovery to almost 7,000$; the price has continued to range between 6,900$ and 5,600$. During the crash, many traders have attempted to buy the dip, just to see it dip even lower. Today we will explore how you could mitigate this risk by using stochastics with region crossover. Without further due, let’s get into how you could have traded this past month by using the normal stochastics and the stochastics with region crossovers. Different stochastic strategies There are many different ways to use stochastics. Today we will explore 2 of them, along with their advantages and disadvantages: Stochastics oversold: This strategy involves getting into a position when the stochastics drop below 20. This strategy works better when the broader trend is in your favor, as it is expected for the price drops to be shortlived and to continue moving higher. The advantage of this is that you will be getting in at the lower prices in an uptrend. This strategy can be very dangerous during a market crash though, or when the price is bearish in general as you will be getting in the trade, while the price will continue to drop further . This can be seen very well in the first three trades where the price continued to drop lower even though the stochastics were already oversold. Stochastics with region crossover: This strategy involves getting into a position once the value of the asset in question rises again above 20. This strategy can work very well in a downtrend but also in an uptrend depending on the severity of the pullback. In a downtrend, this strategy increases the probability that you are entering the trade only when the momentum is back in your favor. This can be seen by the first three entries in the graph where the buy point was 7%, 8%, and 16% lower than with the oversold strategy In an uptrend, if the pullback is very large then this strategy will again ensure that the price will not continue [/b its descent once you enter. However, if the pullbacks are not very severe, then you will enter at a worse price point. Overall the stochastics with region crossovers is more conservative and can lead to higher profits when the markets are volatile, as it is the case right now. Join us at Cryptohopper, where you can automate both of these strategies along with many others!
Long
by cryptohopper
1