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Toridion Quantabotics


Quantabotics#

BETA Version 1.00.01. This software is provided as is without warranty or guarantee of any kind. As a beta version you are aware that the software will contain errors, omissions and may have faults of an unpredictable nature. You accept responsibility for any losses incurred by any person or entity as a result of use of this software. Please report your faults or findings by email to info@toridion.com.

Need help by email? Contact us on info@toridion.com or talk to us on Discord here

Background

The Quantabotics Cryptohopper integration combines two powerful applications to help you build your own trading signal service and automated Cryptohopper trading robot.

First, the Quantabotics connects to Toridion Finance API taking current market positions and trends of multiple forex and crypto pairs before scanning approximately 3 years of data to offer historic statistical analysis in split seconds. Using these statistics and realtime backcasting the API then produces meaningful statistics on both past performance and recent volumetric change to offer customisable BTC trend forecasts with user defined accuracy levels.

Secondly, “Quantabot” robots. A point and click bot builder lets you set rules and conditions on the statistical historic accuracy, volatility and calculated forecast direction of the data sources. Using these rules your Quantabot can place trades on your hopper automatically.

Volatility Protect#

Volatility protect is developed primarily for traders who principally trade with BTC as the base currency. That is they are interested in accrual of BTC not particularly Fiat currency. The ethos of this trigger is to protect the trader against large price swings by preventing a trading bot (hopper) from buying in or selling out during volatile market conditions where final fill price may differ greatly from the requested one.

The Volatility protect trigger calculates the market conditions every hour and considers the statistical forecast for the “next hour”. In simple terms, if BTC/USD is volatile and the forecast for BTC is to go UP or DOWN in next hour then perform a preselected action from those available.

The options

Enable Intelligent Protection An on/off option that disables the entire trigger if unchecked.

Base Currency Defaults as BTC

The rules

Trend Up Select what you want the trigger to do if the market if forecast to go up in the next hour

Trend Down Select what you want the trigger to do if the market if forecast to go down in the next hour

The Actions

  • Do nothing
  • Disable buying
  • Disable selling
  • Disable buying and selling
  • Sell all
  • Panic sell

Force Defaults Checking this option will tell the trigger to first enable buying and selling on your hopper before processing the rules. If the trigger subsequently determines that the best course of action is to do nothing at all, the hoppers buy and sell will remain active.

The conditions The “conditions” are used to decide if the “rule” has been met and therefore the “action” should be carried out.

Accuracy % >= Choose the minimum accuracy Toridion must have been achieving for the 24 hours immediately before processing the trigger rules.

For example if you enter 68% here and Toridion Finance calculates that it has been only 64% accurate in forecasting trend direction over the last 24 hours, the selected “action” will not be processed in this hour.

Volatility >= The minimum volatility that is required to process the trigger rules. For example, if you enter 1.2 and the volatility is calculated at 1.4 then the trigger will process the rules.

A word on volatility & accuracy Toridion Finance calculates volatility and price movement as a function of a 20 day standard deviation of hourly closing prices. If the standard deviation was determined to be $100, then 1.5 would mean a movement of $100*1.5=$150.

By setting an accuracy and a volatility you have a fine control over when you want to trust forecasts based on historical performance of the markets.

Our API self backtests using your requirements, you are instructing the API only to process a rule if it calculates its own accuracy of direction and volume forecasts for the last 24 hours meets the levels you desire. The higher the accuracy you specify, the lower the volatility is likely to be and therefore your bot may trade much less frequently at high accuracy settings.

The system defaults to 68% and 1.2 – 10 x deviation.

Depending on the fees you pay on your chosen exchange, profit may not always be possible for an hourly position and you should use caution when choosing low volatility and accuracy settings try prevent non profitable triggering of close or open positions.

Intelligent Trade#

The intelligent trade function will instruct your hopper to place buy and sell orders according to historical data and technical analysis driven by the Toridion ML API. Currently it supports BTC/USD pair analysis only. (We are adding more coins soon)

The options Enable Intelligent Trading An on/off option that disables the entire trigger if unchecked.

Trading pair Defaults as BTC/USD

The rules Trend Up Select what you want the trigger to do if the market if forecast to go up in the next hour Trend Down Select what you want the trigger to do if the market if forecast to go down in the next hour

The Actions

  • Do nothing
  • Open positon
  • Sell positon
  • Sell all
  • Panic sell

Force Defaults Checking this option will tell the trigger to first enable buying and selling on your hopper before processing the rules. If the trigger subsequently determines that the best course of action is to do nothing at all, the hoppers buy and sell will remain active.

Smart Take Profits [STP] (BETA 1.00.02) Available in Beta V 1.00.02 shortly, checking this option will enable Smart Take Profit [STP] feature. STP will automatically increase the take profit percentage by some calculated value at the start of an hour where the forecast is determined by your requirements to be upward. STP is disabled and a SELL order placed as soon as a downturn is forecast or the take profit value is reached. The increase will be calculated dynamically based on the current accuracy and volatility values and will not exceed 1% at this time.

Smart Buy In [SBI] Checking this option will enable Smart Buy-In [SBI] feature. SBI will try to determine if the bottom of the current market fall has been reached and if the next hour is forecast to go up. Provided the accuracy criteria is met , the bot will issue a BUY trigger to Cryptohopper. SBI overrides Volatility >= if the SBI rule is met!!

The conditions The “conditions” are used to decide if the “rule” has been met and therefore the “action” should be carried out.

Accuracy % >= Choose the minimum accuracy Toridion must have been achieving for the 24 hours immediately before processing the trigger rules.

For example if you enter 68% here and Toridion Finance calculates that it has been only 64% accurate in forecasting trend direction over the last 24 hours, the selected “action” will not be processed in this hour.

Volatility >= The minimum volatility that is required to process the trigger rules. For example, if you enter 1.2 and the volatility is calculated at 1.4 then the trigger will process the rules.

Volatility <= The maximum volatility that is allowed to process the trigger rules. For example, if you enter 5.3 and the volatility is calculated at 5.4 then the trigger will NOT process the rules.

A word on volatility & accuracy Toridion Finance calculates volatility and price movement as a function of a 20 day standard deviation of hourly closing prices. If the standard deviation was determined to be $100, then 1.5 would mean a movement of $100*1.5=$150.

By setting an accuracy and a volatility you have a fine control over when you want to trust forecasts based on historical performance of the markets.

Our API self backtests using your requirements, you are instructing the API only to process a rule if it calculates its own accuracy of direction and volume forecasts for the last 24 hours meets the levels you desire. The higher the accuracy you specify, the lower the volatility is likely to be and therefore your bot may trade much less frequently at high accuracy settings.

The system defaults to 68% and 1.2 – 10 x deviation.

Depending on the fees you pay on your chosen exchange, profit may not always be possible for an hourly position and you should use caution when choosing low volatility and accuracy settings try prevent non profitable triggering of close or open positions.

How Quantabotics Handles Auto Merge and Multiple Positions. Cryptohopper supports a function called “Auto Merge Positions” which will consolidate new orders into a single position with a single take profit value. This feature is very powerful and can simplify trading, but when used with Toridion data it can lead to many positions being opened when Toridion sends an SBI or BUY trigger.

To simplify things Toridion have programmed Quantabots to respect (when possible) the Cryptohopper settings relating to the number of positions the user wishes to have open.

The Max Open Positions setting in your hoppers Buy Settings is a sliding scale 0-80. Before opening an order, your Quantabot will read this value and compare it to the number of currently open positions and if there are less positions open than the Max Open Positions value the order will be placed.

If you have “Auto Merge Positions” enabled, then you could have several past orders merged into a single position, and therefore always 1 position!.. Naturally if the Max Open Positions setting is at 2 or more, then the Quantabot will always think it is OK to open another position. Take care when using the Auto Merge feature and Quantabotics. Until you understand the settings and how they affect Quantabot's buying trigger, it is a good idea to set Max Open Positions to 1. This way you will not risk multiple buy orders merging into 1 position.

The above is not an exhaustive review of the permutations of how Cryptohopper buy settings may affect Quantabotics BUY triggers. The most important point relates to the MAX OPEN POSITIONS value. Your Quantabot will simply count your open positions and compare to MAX OPEN POSITIONS. If the number of positions is less than this figure it will try to open a position if a BUY trigger is received.


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