Fully Automated Crypto Trading
WHAT IS FULLY AUTOMATED CRYPTO TRADING?
This article will explain what a fully automated crypto trading system is and how it can help you to optimize the time you sit in front of your computer and trade yourself.
When I started trading crypto a few years ago, I enjoyed sitting in front of the computer following the charts and markets for hours on end. I thought I was free - I thought I found the perfect tool to make money without having to deal with clients or a boss – it was just me and the market.
I soon realized that it wasn’t that easy. To make the right trades at the right time requires you to sit in front of your computer practically 24/7, and this, of course, is far from the freedom I wanted.
Many times I missed very profitable trades because they happened when I was sleeping or when I could not access my computer. Yes, of course, I used stop losses, etc. to protect my downside to an extent, but that just wasn’t satisfying enough for me.
So, I started researching trading ideas and strategies for the crypto market, and I came across a guy who claimed he made more than $10,000 a day by just trading RSI levels. He said the only thing he did was buy at an RSI level when it went below 30, and then sold it if it went above an RSI level of 70. He said this was exhausting because he spent like 15 hours in front of his computer to generate this trading profit (he did not want to mention the amount he traded, but to make $10,000 you need to have a decent trade size).
Reading this I immediately thought to myself, that’s a good idea, but why do it manually? I’m sure he missed a lot of trades because he did not catch the best trading opportunity at the right second.
That’s when I started researching fully automated crypto trading bots.
I tested 4 or 5 Bots, and of those, I found one bot that could do what I wanted, which was sell and buy on a signal/alert from TradingView.
As I said, it was possible to do that with this bot, but it was not the best experience. First off, to make sure that the crypto trading bot could place orders 24/7 I needed to rent a virtual server to be up all the time. Then, I needed to install the trading bot software on the server and set up all the exchanges and strategies. After many, many conversions with the support team, I was finally able to run my bot and test my strategy.
I started using RSI levels only and sending the TradingView alerts to the bot to trade for me. To my surprise, it worked really well, and I made around $100-$300 a day by just sending trading alerts from TradingView to my crypto trading bot.
You may be wondering, and yes, I’ll admit, it was a bull market at the time. If you have traded yourself, you probably know that it’s not rocket science to make money in a bull market.
So, after a few days, I came across an issue- the bot was buying on low RSI levels, but the market kept going down. The problem with this is it doesn’t leave you with any trading capital- the bot never reaches the high RSI level to sell, so you end up with bags of Coins or Tokens that lose more and more value over time.
I decided to use the stop loss function of the bot to help me minimize my risks, and I occasionally turned off the bot when there were stretches of Bear Markets.
I also started to modify my RSI Alert levels at least once a day for all Coins (I traded all crypto assets that had enough volume at this time on Binance) These modifications allowed me to get back to my $100-$300 days, and most of the time it was even $400-$500 a day.
Even still, on some days I lost a lot of money because, as you know, if Bitcoin tanks almost all Crypto Assets tank as well - so there were many days where almost all stop losses were hit.
The problem for me at this point was that the Bot I was using was like a black box- there wasn’t a user-friendly interface, just a windows console that showed minimal status updates, no statistics, and no opportunity to modify. There also wasn’t any trailing stop-loss function or other advanced functions.
That’s why I decided to build my own fully automated crypto trading bot: The TradingBot X7 which can trade any TradingView alert.
Below I answer a few FAQs about fully automated crypto trading bots based on own experience. I hope I can give you a little more understanding about the industry and the technology behind a fully automated crypto trading system
HOW DOES FULLY AUTOMATED CRYPTO TRADING WORK?
To be able to automate your crypto trading, whether you want to trade Bitcoin, Bitcoin Cash, Ripple or any other crypto asset, you need to have a trading software: a trading bot which can trade 24/7 on your behalf.
The trading bot software will buy and sell on signals that you provide, or from trading signal services.
There are many approaches and systems that will allow you to do a variety of functions, such as trade between exchanges (Arbitrage Bot), buy and sell on Technical Indicator Levels (TradingView Bot), or use certain price levels or percentage values to start and stop trades, and many more.
WHAT TYPES OF FULLY AUTOMATED CRYPTO TRADING SYSTEMS ARE AVAILABLE?
If you are looking for an automated system that can help you trade your crypto assets, you should ask yourself these 3 questions:
1) Do you want to install a piece of software on your computer, or do you prefer to have a cloud-based interface where you can log in with any device at any time?
For most software products you’ll be required to leave your computer running 24/7 to ensure trading signals can be generated and submitted to the exchange. In my opinion, this is a huge disadvantage because if your computer decides to install updates and restart itself, or shuts down for any other reason, you will miss trades and could lose a lot of money- especially if you miss out on a closing signal or a stop-loss signal!
Also, when using a software-based crypto trading system, you will not be able to trade if you don't have access to your computer. You can’t just log in with your mobile phone and modify your trades- whereas with a cloud-based trading system you could log in at any time from any device.
There are also some trading plugins available out there - this is a brilliant idea, but you have the same issue- as soon as your computer or internet is off, no trading signals can get submitted to your favorite exchange.
For these reasons, I recommend using a cloud-based trading solution, which is why we built our trading bot solutions to be cloud-based.
2) Which crypto exchanges are supported?
If you are trading crypto assets already, you probably want to start your automated trading on the exchange you trust most or know best. Therefore, you’ll need to pick a trading bot that can trade on your favorite exchange- for example, a Binance Trading Bot, a Bitmex Trading Bot, a Coinbase Crypto Trading Bot, etc.
Of course, you can also venture to new exchanges and use the exchanges that are supported by the automated trading platform you choose.
3) Which trading strategies are supported?
There are many different crypto trading bots out there, so you need to ask yourself what is most important to you when choosing a bot.
If you already have an effective trading strategy, then you need a bot to automate this strategy. If not, you’ll need a bot that comes with a strategy in place, or even better, a bot that provides advanced strategies you can modify directly. If you are looking to buy crypto for cheap on one exchange and sell it for more on another exchange, you need to look for a "Crypto Arbitrage Trading Bot."
One of the BIGGEST advantages of automated crypto trading software like our Trading Bot X7, is that it can trade every technical signal if you generate a TradingView alert from one of its technical indicators. This unique feature gives you immediate access to thousands of new trading ideas and strategies!
And hey, why just make money when the market goes up? Why not make money when the market goes down too?! Most automated bots can’t execute this kind of advanced trading strategies and don't support short trading, but I have good news for you! Our TradingBot X7 also supports SHORT selling, and can even switch between LONG and SHORT trades automatically.
WHY SHOULD I SWITCH TO FULLY AUTOMATED CRYPTO TRADING?
We already know it’s impossible to trade 24/7 on our own, which means missing out on profitable trades while we’re sleeping or when we don’t have access to our trading platform.
But, time is not the only issue. Our emotions often get in the way too. We experience situations where we get FOMO or just get too greedy, and ultimately, lose profit. An automated trading system doesn’t have any emotions, works 24/7, and, of course, is much better at executing signals quickly.
This is the main reason I don't trade manually anymore, and why we started building our crypto trading bots.
HOW MUCH MONEY CAN I MAKE USING A FULLY AUTOMATED CRYPTO TRADING SYSTEMS?
This question is not easy to answer because it depends on so many different factors. For example, are you trading in a bull or bear market, what crypto assets are you trading, what is your trading strategy, how much money can you allocate to every trade, and many more.
Our trading bots are not magic money making machines, but they give you the unique opportunity to set up and automate strategies. Our bots even allow you to virtually trade cryptocurrency for free - so you can test any trading strategy you want, and if you find an effective trading strategy, just flip a switch to go live to send all those trades to your favorite exchange within seconds.
That being said, it is always possible that you could lose money using one of our crypto trading bots because of the many factors I mentioned above.
But, if you go back to the beginning of the article, you will see that it is very realistic to earn between $100 and $500 a day. That in mind, results like this need a lot of testing and fine tuning, and of course, a bot could make much for than $500 a day with the right setup and the proper market condition.
EXCHANGES CAN I USE A FULLY AUTOMATED CRYPTO TRADING BOT on?
More and more exchanges are entering the market every day.
It is doubtful that you will find trading bots that can trade on a very new exchange. The reason for that is most of the time new exchanges don’t have a lot of trading volume, and without an excellent trading volume, it is almost impossible to make money.
For all the established crypto exchanges, like Binance, BitMax, Bittrex or Coinbase, you will find many more trading bots. These are also the crypto exchanges that we support at the moment.
For us at Trading Bot Solutions, it comes down to safety and security - we don't want to partner with exchanges that don't have a proven track record and a good standing in the industry to keep you safe.
WHAT COINS OR TOKENS CAN I TRADE USING A FULLY AUTOMATED CRYPTO TRADING BOT?
When it comes to coins and tokens, it will depend on the crypto exchange you want to use. For example, if you use our TradingView TradeBot X7 to trade on Binance, you will be able to trade all coins that are listed on Binance. The same applies to all other exchanges.
Now, with that said, our TradingView TradeBot X7 differs from most other bots out there because with most bots you can’t execute SHORT trades – they only allow you to execute LONG trades. But we can execute LONG and SHORT trades, and even combine these two trading types (that is, if the exchange supports SHORT trading, i.e., BitMex, Poloniex, etc.). If you connect to BitMex, for example, we support the short trading of crypto assets like Bitcoin (XBT), Cardano (ADA), Bitcoin Cash (BCH), EOS (EOS), Etherium (ETH), Litecoin (LTC), Tron (TRX), and Ripple (XRP).
HOW MUCH EXPERT KNOWLEDGE DO I NEED TO USE A FULLY AUTOMATED CRYPTO TRADING BOT?
As I mentioned before, I think the best starting point would be to have a working trading strategy already, because if you scale a crypto trading strategy that does not work you are going to lose money!
For that reason, we offer you a 100% FREE crypto trading bot solution where you can work on your strategy for as long as you want, and then simply go live when you have found a winning trading strategy that works for you.
To make things even easier for you, we also provide a lot of webinars and online training to make sure you get the support you need to fine-tune your strategy!
Whenever you need help feel free to use the chat system or contact us via email at firstname.lastname@example.org.
IS IT SAFE TO USE A FULLY AUTOMATED CRYPTO TRADING BOT?
For a cloud-based application, I don’t think there is a lot of risks since it is very restricted. That being said, I wouldn’t trust every trading bot software out there- you never know what they could be up to. What’s more, I wouldn’t advise installing any piece of software on your computer because you never know what data the software might be trying to access on your computer.
At this point, I think it’s necessary for me to explain how a cloud-based crypto trading software like our bot works.
Bots, like our crypto trading bot and most of the Bitcoin trading bots out there, need an API Key that allows it to access your favorite exchange’s backend. All you do is copy and paste this API Key and the API Secret that you get from your exchange over to the trading bot settings. Once you do that, the trading bot can buy and sell on your behalf using this API connection.
Your coins/tokens and exchange account balance never leave your preferred exchange, so there is no way for the company that developed the trading bot to steal your coins or tokens.
The only risk I can think of would be if you generate an API Key which gives the crypto trading software the right to withdraw from the exchange (this is an advanced function that some exchanges provide). To avoid this, NEVER generate an API Key that allows the withdrawal of your crypto assets when it is NOT necessary for the functionality of the software. If you use a regular API Key that just allows trading, the trading bot software won’t be able to withdraw any crypto assets. (To buy and sell on the connected exchange on your behalf, all you need are limited API Keys that are just able to BUY and SELL.)
So, I don't consider most crypto trading bots as risky as long as they are cloud-based and you don't give them more permission than they need.
IS IT LEGAL TO USE A FULLY AUTOMATED CRYPTO TRADING?
Yes! There are no legal issues or regulations; everybody can use a crypto trading bot.
However, if you live in a country like Morocco or India (or any other jurisdiction that has banned owning cryptocurrencies) you are theoretically not allowed to buy or trade any crypto asset on any exchange either manually or with an automated bot. (Of course, we at TradingBot Solutions don’t restrict the use of our bots to anyone, no matter if you are from India, Morocco, or Mars!)
HOW MUCH MONEY DO I NEED TO START TRADING USING A FULLY AUTOMATED CRYPTO TRADING SYSTEM?
If you use our Trading Bot X7, you don't need any money to start. We give you the unique opportunity to test all your strategies with our Virtual Trading Feature, so you can simulate and test your crypto trading strategy as long as you want.
After that, you can simply flip a switch and go live with your tested strategy in a matter of seconds.
Generally, when it comes down to your trading budget, this will mainly depend on what your strategy and time frame is. In the example I gave you above where I made a profit of $100 to $500 a day, I was just trading in a very short timeframe of one minute. My average trading budget was as low as 0,02 BTC per trade. I traded more than 80 crypto assets on Binance and used an RSI Strategy, so I made between 200 and 600 trades every day depending on the market situation.
As you can see, you don't need much budget to start crypto live trading. You can start with a total trading budget of 0,1 BTC and set up your first five live trades. The more profit you make, the more trades you can do. But, be careful and don't get too greedy, otherwise, of course, there is also the chance that you will lose your money!
WHAT ARE THE MOST CRITICAL FEATURES TO LOOK FOR IN A FULLY AUTOMATED CRYPTO TRADING BOT?
I am a big fan of keeping things simple, but some features are critically important when it comes done to fully Automated Crypto Trading.
1) Your bot needs to be able to trigger a stop loss
2) Your bot needs to execute trades quickly and reliably
3) Your bot needs to be trading 24/7
4) You need to be able to modify your strategies
5) You need trade statistics to evaluate and pick winning strategies
6) You need reliable statistics to turn off bots that lose money and fine-tune bots that make money
7) A trailing stop loss function helps you make more money
1. Your bot needs to be able to trigger a stop loss
Especially in an extended Bear Market, it is essential to have a fast and reliable stop loss function. If your trading bot does not allow you to set a stop loss at a particular loss percentage, it is very likely that you will lose money because the bot will keep on buying when the market goes down, and if this period lasts longer than expected, you lose money.
If you don't have a stop loss, you will run into situations where your bot will not be able to trade for weeks if you don't give it more budget.
2. Your bot needs to execute trades quickly and reliably
To be able to make a good profit, your bot needs to work reliably and place trades at the right time. Especially when we talk about placing sell orders or executing stop losses, it is critically important that these signals get executed as quickly and reliably as possible.
3) Your bot needs to be trading 24/7
As we discussed before, your computer and your internet connection has to be working reliably and be online all the time to guarantee that all trades get placed at the right time, especially if you are using a software solution trading bot that you need to download and run on your computer or a browser plugin to send trade signals.
4) You need to be able to modify your strategies
If you really want to make money you need to be able to test and adjust your trading strategies. Of course, it also helps when you can pick from as many trading strategies as possible.
5) You need trade statistics to evaluate and pick winning strategies
If you have set up as many trades as I have, you may also have realized that some phases and strategies work much better than others, but you don't really know why.
If you don't have integrated statistics, it is almost impossible to figure out which strategies make you money and why.
6. Running your automated crypto trading bots without having reliable statistics does not make any sense!
You need to know which strategy and bots make you money, and you need to find out fast if a bot or a trading strategy loses money.
I consider this one of the most critical features of a crypto trading bot. Most trading bots that I used only allowed me to guess which strategies worked and which ones didn’t.
Without real data, it’s more like a guessing game than anything. Statistical insights show you where you are losing money. What’s more, without them you won't know why a trading strategy works, making it almost impossible to scale the right factors to make more money.
7. A trailing stop loss function helps you make more money
In point number one we talked about how important it is to have a stop loss function, and I can tell you it is even better when you have a trailing stop loss function. An advanced trailing stop loss function will protect you from losing money and will also help you to maximize your profits on every trade. A trailing stop loss function will automatically modify your stop loss level, this keeps you safe and as profitable as possible.
WHAT IS THE RIGHTFULLY AUTOMATED CRYPTO TRADING SYSTEM FOR ME?
This question is hard to answer because everybody has their own taste, and, as we discussed earlier, it also depends on the crypto trading bots’ ability to trade on your exchange, as well as many other factors.
I invite you to test our Trading Bot X7 Crypto Trading Bot 100% Free- we developed it to provide all the features I was looking for in other bots but could not find.