Automatic trading is the holy grail of trading, and probably the reason why you're here in the first place.
Automatic trading is a revolutionary way of trading and hasn't been available to retail traders for a while. The reason: it can be quite complicated. Luckily, making automatic trading easy is our core business.
There are several ways to start your automatic trading adventure, each with its own difficulty level. We will cover the following automated trading methods: semi-automatic trading, copy trading, and fully automatic trading.
Semi-automatic trading can be useful for those who aren't ready to dive deep in the world of algorithms and algorithmic trading, as well as those who like to keep the buying decisions to themselves.
With semi-automatic trading, you are the one who opens up trades, but you use the Hopper to sell them automatically. This way, you can do your own analysis on the price, but utilize our unique features to sell automatically.
There are several tools that are useful for semi-automatic traders, which we discuss below. We divide these tools in 2 groups: buying & selling. Some of these tools help you to buy for better prices, while others help to sell automatically and with even better profits.
When you buy, you never know if you’ve purchased at the bottom. This is impossible to know, but it is possible to get help from a bot! Use the Trailing Stop-Buy (TSB) to delay your buy and track the price. TSBwill keep tracking the price down until it goes up. When it goes up, it will initiate the buy order and voila!
Have you bought a position, but it went down, and you’re in a loss? Use DCA, Trailing Stop-Short, or Short.
DCA (or Dollar Cost Averaging) is a technique that averages out your buying price, or helps you when a position is in a deep loss (this is called the “Martingale technique”). The assumption is that a crypto price will rise eventually, so if you keep doubling your investment, your average buy price will be lower, and you will make a profit sooner when the price rises again. You do need a healthy investment budget for this technique, as you will need to keep doubling down on your investment.
Another way to make up for a loss-making position is Short and Trailing Stop-Short. This way of shorting is not the traditional method, where you make a profit by shorting. Our shorting is a buyback function. When you expect a position to make a more significant loss, you initiate a Short, and your bot will sell the position. When you think the price has reached its bottom, you consolidate your short, and it will directly buy back the position.
Trailing Stop-Short helps you by closing shorts automatically and buying back when the price rises again.
You have only made a profit when you’ve sold your investments for a stable currency like the Dollar or the Euro. Tools like the Take-Profit, Stop-Loss, and Trailing Stop-Loss are ideal for helping you sell.
The Stop-loss won’t help you make a profit, but it will prevent further losses. It may feel counter-intuitive to use, but it’s vital for a trader! For example, if 60% of your buys are positive and 40% negative, then your stop-losswill help filter out the bad buys. If you don’t use a stop-loss, then you will end up with what we call “bags”—positions in a deep loss that you should’ve sold earlier.
The Take-Profit is an incredibly simple tool to sell automatically. You simply set a percent profit, which tells your bot when to sell automatically This is useful if you have an understanding of where supports & resistances in a price lie.
If you don’t have an idea of where the price could go, the Trailing Stop-Loss is a brilliant and accessible tool. It tracks the price up and sells your position when the price goes down for a percentage. This is a very popular tool among our traders.
Officially called “Mirror Trading”, copy trading is when you follow experts on our platform and have them decide when to buy or sell. There are several ways for you to copy traders on our platform.
Fully copy an expert. Subscribe to signalers who send out trading signals which your bot can trade automatically on. We offer a marketplace where you can easily judge the performance of signalers. You don’t need to follow the sell signals they send, but you can also Semi-copy a trader. Use the Stop-Loss to protect against deep losses and let the Trailing Stop-Loss help you sell at the right moment.
Templates are preconfigured Hoppers that have these settings already set up for you.
Do you want more control? Strategies are packages with algorithms that scan the markets for you. You can backtest these strategies to see if they perform well in the current market.
The real deal. We encourage this way of trading, but you will need to understand how the Hopper scans the markets and how to utilize all tools. We've covered the essential tools to use when buying and selling in the "Semi-Automatic Trading" part. The only thing that's missing is the automated technical analysis. Yes, that sounds difficult, but it's not that hard.
We will not cover the ins and outs of technical analysis here, but we can give you an idea of how full automatic trading looks like.
The most important thing is to decide which coins you're going to trade and how you will spot the best buying opportunities automatically. Configure your coins in the Config -> Baseconfig -> Coins & Amounts.
Next up, either select a strategy that you’ve downloaded from the marketplace that your Hopper is going to use to scan the market...
Or build one yourself in the Strategy Builder! Select the indicators you are going to use and test your strategy until you’re satisfied.
Did you know that you can even configure a different strategy per coin? Use config pools to set a different strategy or buy/sell setting per coin.
That’s it! It’s not rocket science, it’s just something that’s maybe totally new, and that has a bit of a learning curve. It may feel overwhelming to take your first steps in the world of automatic trading, but you will learn quickly and impress your friends (and yourself!) in no time.