Bot Trading 101 | The 9 Best Trading Bot Tips of 2023
Imagine a world where you can automate every aspect of your trading, leaving you with more time to savor the finer things in life.
Say goodbye to those endless hours in front of charts, desperately seeking that perfect trading opportunity, which may never arrive.
Automate your trading to stop stressing out in the volatile crypto markets.
Start monitoring your bots rather than trying to find the perfect trading opportunity.
Sometimes, trading is like finding a needle in a haystack, hours in front of the charts trying to find that market that gives you an opportunity that may not even come today.
Here are 9 tips and tricks to get the most out of auto-trading crypto with trading bots:
1. Select your coins wisely.
It all begins with the coins you select.
Research them diligently and don't forget to subscribe to their social channels.
Staying in the loop about new developments and partnership announcements can be your golden ticket to a profitable crypto journey.
And when it comes to trading other people's favorite coins, check out the news and charts sections to spot the hidden gems.
If you're a fan of " TradingView crypto screener", you can even automate this process with Cryptohopper by subscribing to them as a signaler. Talk about efficiency!
Research your favorite cryptocurrencies thoroughly and subscribe to all the social channels to find new developments and partnership announcements that may drive their price up.
2. If you are designing a strategy, research your indicators.
Technical Indicators are your trading compass, guiding you through the market's twists and turns.
But here's the kicker: there isn't a single indicator that works well in all market conditions and on all cryptocurrencies.
Depending on market conditions and your trading style, some may be more effective than others.
Take your time to research and backtest them extensively before committing your real funds.
Find out which indicators are best according to the specific market environments and your trading style. Research them and put them into practice.
Whether you use volume, volatility, trend or momentum indicators, test them extensively before trading with your real funds. You can do it very easily by going to the section Strategy and using the backtesting tool. Additionally at Cryptohopper we also offer you the benefit of trading in a simulated environment through paper trading.
As you can see there are various completely different approaches to analyzing a coin. It’s your task to find out which one is most applicable to your coins when trading.
And if that’s an issue, subscribe to a signaler or follow a copy bot and let others manage your account for you.
3. If you are thinking about using signalers, do your homework.
Signalers can make trading feel like a breeze, but don't let that deceive you.
Spend some time researching your signaler. Check their performance report, real-time stats, and their signal overview.
Ensure they cover the coins you're interested in and the exchanges you use.
Google them for more insights; many signalers are backed by skilled analysts armed with cutting-edge tech.
When subscribing to a signaler it may often feel like you really don’t need to do anything to be trading.
It may simply be as easy as connecting your bot to your exchange, clicking subscribe on a signaler and closing your laptop for the week.
A little bit of time spent on researching your signaler however, can pay off very well. When choosing a signaler, don't forget to:
Check the Performance report and realtime stats.
Check the Overview of the signal.
Check if he signals to your coins and your exchange.
Google the signalers. They often have their own website with info on how they work. Many are teams of highly capable analysts, using breakthrough tech to provide their signals.
4. Get into the community.
Youtube Cryptohopper has useful and explanatory videos in which we explain step by step every single aspect of the platform in short videos.
Also, you can find other youtubers talking about Cryptohopper, and seeing their configuration and how they make a profit using Cryptohopper.
Twitter/X - Follow us on Twitter/X as well, we post announcements, updates and market analyses that can be really helpful for you!
Discord - Join here to speak to experienced users who will be glad to provide trading tips. Cryptohopper employees cannot legally give any specific trading advice, but experienced users may be able to point you in the right direction!
5. Make the Paper trading mode your best friend.
Paper trading is the last step to real trading that every trader should take.
Jumping straight away into trading with real funds without any previous experience is something that commonly goes wrong with new traders.
Enable the paper trading mode and put in practice your strategy while you reinforce your trading knowledge.
You can even test different signallers or copy bots in paper trading mode to check which of them is the most profitable!
6. Fire up some config pools.
Trading crypto is like playing with asteroids.
Coins are bouncing all over the place, some heading up and some heading down, all at different speeds and in their own unique way.
Once you start getting to know the coins in your portfolio, you can set up specific indicators and actions for those coins.
You may be more interested in scalping some coins, while swing trading others, and treating others as more of a long-term investment.
Config pools will let you do this!
7. “Keep signal for X candles.”
Ever wondered how to handle multiple indicators signaling buys or sells at different times?
Enter "Keep Signal for X Candles."
This nifty feature allows you to set a specific duration for a buy or sell signal to stay active.
This prevents missed opportunities in situations where multiple indicators may not align perfectly.
For example, imagine that we a strategy with the MACD and DMI, and both have to signal a buy at the same time in order to open a position.
These two indicators give signals through crossovers of two lines.
It is pretty difficult for the crossovers to occur at the same time and therefore, not many positions would be open.
However, With the "Keep signal for X c andles" function you can make, for example, MACD to keep a buy signal for a 5 candles, and thus if the DMI sends a buy signal within those 5 candles, a buy position will be opened.
This can help your strategy in finding more suitable opportunities.
8. Backtest!
Remember the age-old adage: "Those who don't learn from history are doomed to repeat it."
Before implementing any configuration, perform a thorough backtest.
It provides insights into past performance and helps you make informed decisions.
While the future remains uncertain, learning from the past is a proven strategy.
You’ll see an approximation of where you would have bought and sold if you had applied it.
Although you can’t predict the future, you absolutely can learn from the past. Here’s a backtest that looks just about ready to load into your config!
9. Update your strategy.
Financial markets in general tend to change the way they move from time to time. This is especially true for the crypto market which is younger and still considered in its "wild west" period.
This means that a strategy that works well now may not work well in 6 months from now. Therefore, make sure that you monitor your strategy, and if it doesn't perform well anymore, change it according to the new market conditions.
There you have it – 9 game-changing tips and tricks to supercharge your crypto trading with Cryptohopper.
Now, what are you waiting for? Click here to start automating your trading journey and unlock a world of possibilities in the world of cryptocurrencies.
Your financial future is just a click away! Happy trading!
