How to run a Bitcoin trading bot?
Cryptocurrency trading is hot but can also be quite demanding, a bitcoin trading bot can help!
Prices of Bitcoin, Ethereum and various alternate currencies (altcoins) are volatile and crypto trading can earn you an easy extra income. Monitoring the markets, watching indicators and placing buy and sell orders on time can be an intense job. Many free and paid Telegram groups are offering trading signals that can be followed for achieving a profit. This can be profitable, but still requires manually placing your orders. To save time there are many technical solutions around which can automate your trading: using a bitcoin trading bot. This article describes how to set up and configure one of the most profitable bitcoin trading bots around.
After thoroughly testing many open source trading bots like Gekko and Tribeca, we found that these bots came close to what we wanted but they never realized the potential that was actually there. The bots were buying and selling too early or too late.
That’s when we tried the Profittrailer bitcoin trading bot. Profittrailer is a paid bot which costs 0.03 BTC per license. This might seem a lot, but we found that the bot regained this amount easily within a week by trading with a starting balance of just 0.20 BTC. The unique feature of the Profittrailer bot is that it can “trail” the market. There are several indicators that can be used when trading with this bot. If an indicator gives a buy or sell signal, Profittrailer will not immediately place an order. Instead it will start watching the market to see if the current trend continues. Once the market reverses, it will place the order. By doing so it will easily catch peaks, giving you the maximum profit available in the market.
Markets can go up, but eventually they will also go down. Profittrailer has the unique “DCA” feature built in just for the last scenario. If a market goes down more than expected, it can place follow-up orders which will level out the average cost of your initial order. If you buy in on a pair and the market goes down by 10%, placing a second order of the same amount used in your initial order would mean that the market just needs to go up by 5% to break even on this trade. Practically this means that Profittrailer “keeps in business” even when markets go down.
To get started there are four recommended steps you need to take.
- In order to have your bot up and running 24/7 it is recommended to run it on a VPS server. VPS’es are usually used for hosting websites or databases, but can also be used for running Profittrailer. If you don’t have a VPS yet, we recommend you to get one at Digital Ocean. We successfully ran a single Profittrailer instance on a 3GB/1CPU Ubuntu droplet which will cost you $15 monthly.
- In order to be able to trade, you need a trading account. Profittrailer supports several exchanges, we recommend Binance because of its trading fee structure. After creating an account, you should buy some BNB tokens first. These tokens will get you a discount on trading fees. As Profittrailer will make many trades, this is definitely worth spending money on. Be sure to put some balance on your account, it should be enough to trade with multiple pairs while also having some balance reserved for DCA.
- Order a Binance license for Profittrailer.
- You will need Binance API keys. You can generate your API key via your user profile on Binance.
- After completing the payment process, you will get an email with installation instructions.
- You need Telegram installed on your computer or mobile phone.
- In order to activate your Profittrailer license, you need to talk to a Telegram bot.
- Profittrailer has several localized and global Telegram channels, used for announcements and for connecting the community of users.
- Last but not least, the tool can send you Telegram notifications whenever the bitcoin trading bot makes a transaction.
Installing your Bitcoin trading bot
Once all the above steps are done, you can start installing your bot.
- First you need to login to the console of your Digital Ocean VPS. Instructions on how to do this can be found on this Digital Ocean help page.
- Once you are logged in, follow the instructions as given in the Profittrailer VPS installation guide.
Configuration of your Bitcoin trading bot
Profittrailer is fully configurable, and can be adjusted to almost any strategy. In the “trading” folder you will find three configuration files which can be fully adjusted to your needs. To give you a starting point in configuring your bot, we advise you to watch the Youtube videos created by @TheGobOne and @CryptoGnome.
Make sure you don’t just copy any settings you find online! Instead, investigate the given settings and adjust them into your own trading strategy.
Originally published at EtherICO.