This is part 8 in a series of articles on the Nefertiti trading bot. If you don’t know what Nefertiti is or does, please refer to part 1 in this series.
Nefertiti comes with a built-in strategy that is simple but proven; buy the dip, then sell those trades as soon as possible, preferably on the same day.
However, some traders might prefer an alternative strategy. Starting with Nefertiti 0.0.34 we’re pleased to announce that you can now automatically trade the coins that are trending.
What defines a trending coin? This new strategy will buy a token if it meets the following criteria over a 24-hour period:
- a volume spike of at least 500%
- price needs to go up
- total volume at least 100 BTC
Why is volume important? Volume analysis is the technique of assessing a trend based on volume activity. Volume is one of the oldest day trading indicators in the market, and one of the simplest methods for observing buying and selling activity of a token. In the world of crypto, volume spikes are often the result of news driven events (could be fake news).
Please note that a volume spike will often lead to sharp reversals, since the moves are unsustainable due to the imbalance of supply and demand. Trading counter to volume spikes can be profitable, but with great reward comes great risks. Do not spend money on this strategy that you cannot afford to loose.
Here’s how to get started. First, you’ll need to launch a so-called
sell bot. Open your Terminal (MacOS) or Command Prompt (Windows) and then enter this:
./cryptotrader sell --exchange=Binance --strategy=1
sell bot will ask for your API and Pushover keys. Please note that you should NOT give Nefertiti (or any other bot for that matter) API keys with withdrawal privileges. Stop here and confirm that your API keys do not include such privileges, then generate a new API key pair if they do.
Now that Nefertiti is ready to sell your trades, let us set up the
buy bot. Open your Terminal (MacOS) or Command Prompt (Windows) and then enter this:
--repeat instructs Nefertiti how often you want to repeat the
buy command. In this example, the
buy bot will search for a trending coin every minute.
Nefertiti is freeware. But if the bot is making you money, then I’d appreciate a BTC donation here:
Your donation will improve the bot and keep this project moving forward. Thanks!