Artificial intelligence (AI) is the future of investing. In fact, some experts believe that AI will soon replace human traders. But not everyone wants to be replaced by a computer program!
That’s where Dan Hollings comes in. He developed his own unique trading strategy called The Plan. The Plan uses artificial intelligence to help investors profit from the stock market.
The Plan is a simple, step-by-step process that anyone can use to trade successfully. It doesn’t require complex technical knowledge or expensive software. All you need is a smartphone and access to the internet.
There’s always risk involved but The Plan minimizes the risks. The Plan is completely automated and does not require any human intervention. It trades automatically, 24/7, 365 days a year.
If you’re interested in learning more about The Plan, click the link below.
Want to learn 6 of the Best Crypto Trading Bots Strategies?
Automated computers that trade cryptocurrency are called crypto trading bots. Their main purpose is to earn as much money as they possibly could for their customers. They accomplish this by continuously monitoring the market and responding according to predetermined rules. According to your taste and preferences, you will be able to decide how the bot will analyze different market movements including volume, orders, price, and even time.
Trading Bots – Some background
Richard Donchian, a 1949 creator of automated trading systems developed rules that allowed him to sell and buy funds. Famous traders like John Henry adopted the idea of trading based on rules in the late 1980s. Since then, trading bots have become popular in the marketplace in various forms. However, these are usually costly and not accessible to the common investor. The Bloomberg terminal may cost more than $10,000.
Two main uses for trading bots are: First, investors can utilize bots to make the process much simpler and more efficient. The bots will take care of issues such as portfolio diversification, index construction, portfolio rebalancing, etc.
The second case is more complex and sophisticated. The bot will try to beat the market and make consistently profitable profits in this scenario. This method is not without challenges.
However, the game has completely changed by introducing trading in cryptocurrency. The cryptocurrency market is accessible 24/7 and highly volatile. This is why bots are more crucial than ever. Many people prefer to trade Bitcoin passively and are unable to commit the time needed to conduct a dynamic analysis of the market. Therefore, cryptocurrency trading bots can be useful to users who want to make effective trading.
Building blocks of a crypto trading bot
These are the features that all trading bots have in common:
- Backtesting.
- Strategy Implementation.
- Execution.
- Job scheduler.
#1 Backtesting
Before you can make any trades using your bots, you must backtest it against the historical data in the market. Your backtest must be as precise as possible. This can be accomplished by considering latency, slippage, and trading costs.
You can get the highest quality market data through exchange APIs. Libraries like CCXT let you connect with a variety of exchanges.
#2 Strategy Implementation
The decision to determine the strategy for trading that your bot will use is critical. This is the time to determine the logic and calculations your bot uses to decide on when and what trades to create. To see how the strategy works, test it back after you’ve created it. We will talk about the strategies you can apply in a minute.
#3 Execution
So, you have backtested your strategy?
Next, you need to execute it in real-time. This is where the logic that you have encoded in the bot will be transformed into API requests that the exchange will be able to understand. You may have been able to make use of fake money to simulate your strategy with some bots.
#4 Job Scheduler
Once you’ve hard-coded the strategies and tested them out in the real world, it’s time to automate the entire procedure. To automate your trading strategies you will need to create a job scheduler.
What is the best time to use the best time to trade with crypto bots?
We have touched on this subject before however, there are a lot of features that a properly-designed bot could perform for you like rebalancing, portfolio management, data collection, smart order routing, and more. When it comes to programming and choosing the bots you want to use, these are the basics of automation.
Automation doesn’t mean being completely hands-free. It doesn’t mean that you have to give up your touch.
The biggest time-consuming tasks that tend to be repetitive and involve unnecessary complications are the ones you need to automate.
What can trading bots do to improve your business? Let’s look at it in depth.
#1 Repetitive Tasks
Administrative tasks that are repetitive consume a lot of time and energy. You can “copy and paste” specific tasks using the help of a trading bot and make trades quickly. Bots can be an excellent help for repetitive tasks like periodic rebalancing. If you’d like to perform hourly rebalances, then you’ll need to, as the name suggests, rebalance your portfolio every hour. This means you’ll have two options to choose from:
Set the alarm each hour to balance the portfolio, and you’ll lose the sense of sanity.
Create an automated trading system and program it to adjust your portfolio every hour till the end of time.
#2 Timing
The ability to time your trades and achieve an extremely high level of accuracy for your trading is necessary to be successful in trading. Each trade you make could make a significant difference to your earning potential. Let’s consider an instance. Suppose the value of Bitcoin is going down and you’d like to trade your position as soon as BTC is at the support line at $8,750. If you did this manually, you’d need be patient and attentive to the price chart and even then, you may not pull the trigger at the appropriate moment. It’s simple to program the bot to monitor the market and execute trades at the appropriate times.
#3 Day trading is an opportunity to work full-time
There are many responsibilities that we have to fulfill every day. This may make it difficult for us to sit in front of the computer and watch the charts of prices round the clock. Imagine the headaches that you will have in the event that your portfolio isn’t carefully thought out and varied! It’s not always possible to conduct all the research that you must do every day. In addition, as we’ve mentioned before trading is a process that involves many repetitive and difficult tasks. A trading bot can efficiently perform these tasks repeatedly throughout the day, making the process easier for you.
#4 The market never rests
As we’ve already mentioned that the cryptocurrency market is never closed. There are thousands of exchanges all over the globe, offering the services they provide 24 hours a day. This might sound unbelievable however the reality is that prices can change at any time. This means you need to be aware that to ensure you’re using your funds to the maximum extent possible, you will need to be awake all the time and attentively reading price charts. Because it’s impossible to do that there are two choices in front of you:
You will need to take some time off in order to make the highest profit.
Make use of a trading robot to automate your strategies while you rest.
#5 Complications can be easily reduced
Think about the instance of “smart order routing.”
It’s possible to route trades through multiple trading pairs.
Each trading pair should be selected with care by the timing of its trade, the asset’s quantity, trading price, and pricing.
The entire process must be finished within a specific time frame before the market conditions change.
It’s easy to understand, right? It’s not an easy task to master this skill. This is just one example of the many complexities that should be factored into the training process. Some strategies are almost impossible to apply.
These sophisticated strategies are able to be automated by trading bots.
What method should I incorporate in my bots?
Here are some methods your bots could be programmed. This article was the source of information for this section.
#1 Mean Reversion
The concept of mean reversion is based on the simple assumption that if a cryptocurrency’s price moves from its average then it will eventually return to that value. This assumption holds true both for traditional and cryptocurrency markets. It is because of market psychology. Imagine a cryptocurrency called “X” with an average price $1.
If the price of X increases to $1.25 If the price rises to $1.25, the traders buy the asset in bulk to lower the cost to $1.
Similar to the example above, if the price drops to below $0.75 and the market will consider this the bottom and begin to accumulate as much cash as it is possible to get the price to $1.
#2 Momentum Trading
Momentum investors judge the market’s ebb and flow by its momentum. An ideal scenario is to ride a positive momentum wave with your assets and then immediately sell them in the event that the market’s momentum reverses. This is due to the assumption that asset prices will rise above their normal levels, only to lose momentum and plummet. This situation is crucial in that the timing of the sell-off and buy-in is critical.
#3 Arbitrage
Different exchanges could offer different prices for assets. This is due to the price fluctuation across markets. Eg. Eg.
The Arbitrage strategy lets you gain profit from buying and selling using the same exchange. To make the most of these price variations it is necessary to buy and sell X, nearly simultaneously.
#4 Naive Bayes
The Naive Bayes trading algorithm makes use of machine learning to calculate the probability of an event occurring. You can provide relevant information to your bots so that they will determine the most appropriate timings for entry and exit.
#5 Natural Language Processing (NLP)
In the cryptocurrency market, the price of the asset may fluctuate wildly as per fundamental news like articles, tweets, or other similar content. By using NLP programming, one can teach their bots how to programmatically interpret words and phrases and then analyze the sentiment behind them. Eg. News from partners can be positive. If your bot can read an article that states, “X partners up with B to help increase mainstream adoption,” it should start accumulating the asset.
Different types of Cryptocurrency Trading Bots
The five major types of cryptocurrency trading bots are as follows:
- Arbitrage bots.
- Market-making bots.
- Algorithmic trading robots.
- Technical trading bots.
- Profile automation bots.
#1 Arbitrage Bots
These bots are hardcoded with an arbitrage technique. Blackbird is one of the best arbitrage bots available on the market.
Blackbird Bitcoin Arbitrage makes use of C++ to perform short and long-term arbitrage between Bitcoin exchanges. Although the code is not 100% accurate, it can be downloaded for free. Blackbird does not sell Bitcoins but rather short-sells them to the market for short-term transactions. This happens because of the following reasons:
The strategy is market neutral.
Using this strategy, one doesn’t need to transfer funds between bitcoin exchanges. Selling and buying are done on two different exchanges simultaneously and independently.
#2 Market Making Robots
Market-making bots place a variety of purchase and sell orders to earn a quick profit. Eg. If X trades for $1 then your bot will put an order to buy $0.99 and a sale order of $1.01. You will make $0.02 in the event that both orders are filled. HaasBot is among the top market-making bots.
This bot has been available since 2015 and is located out of Rotterdam. These are the major features of Haasbot that you should be aware of:
You can choose from a wide range of trading options: you can run 10 HassBots at once, use 20 indicators, and apply multiple trading strategies. The major exchanges are supported.
It has been created for traders who are not technical, therefore it is pretty user-friendly for beginners. You won’t have to mess with its code.
Because it is hosted in the cloud, there aren’t downloads needed.
Three subscription choices are available three options: 3, 6, and 12 months. The price ranges from 0.04 BTC for a 3-month beginner license up to 0.32 BTC for a 12-month Advanced license.
#3 Algorithmic Trading Bots
This is a code-driven program that generates and executes buy and sell signals in the market. The primary components of these bots include rules that indicate when to sell or buy as well as rules that specify the time when the position should be closed along with rules for determining the size of order and allocation of the portfolio. Trality is a well-known tool for the creation of these bots. A trading bot that makes use of algorithmic trading
Trality is utilized by traders of different experience levels and skillsets to create robots to automate trades with its intuitive and all-in-one cloud-based platform.
Utilizing the in-browser Python “Code Editor”, you can use its easy API as well as a variety of technical analysis indicators to customize your bot. Furthermore, the prospect of trading outside of technical analysis indicators is what keeps professionals returning to Trality. The true power of your bot is in its capacity to utilize math and statistics to boost its power. Automate any sophisticated trading strategies with this software all in one location.
Trality also has a product called the “Rule Builder” for those who do not have the ability to write code. It allows users to automate their strategies and develop them without having to write any code. It is done by using a drag-and-drop interface in which you can simply drag and combine indicators of technical analysis and pre-defined strategies to create your own bot.
- Tools for professionals and beginners
- A cloud-based platform that lets your algorithms run 24/7
- Reliable and fast backtesting module
- Flexible pricing model
- All major exchanges are supported
- Rich documentation
#4 Portfolio Automation Bots
The bots can help users build, maintain, and obtain their desired portfolio. These bots are used to automate boring, repetitive tasks. HoldBot is an example of a brilliant portfolio automation bot.
Hodlbot keeps an index of the top 20 coins according to the square root of market capital. Hodlbot HodlBot will automatically rebalance your portfolio as prices fluctuate by selling assets that aren’t performing well and buying them back. There are a few features of Hodlbot to keep in mind:
It doesn’t require the user to enter any additional code.
You can try it for 7 days free after which you’ll be charged $3/month.
Advanced portfolio customization options, including automatic rebalancing and custom time intervals
It has well-researched market indexes and a backtesting tool.
#5 Technical Trading Bots
The best friend of the conservative trader, technical trading bots are the most well-known and popular bots on the market. They use signals and indicators to forecast the future price movement and use them to profit. 3Commasis one of the more extensively-used trading bots for technical trading.
3Commas has an interface on the web that doesn’t require any downloads.
There is no need to modify the backend code.
There are two levels of subscription offered: Basic and Professional. The basic plan is priced at $25 per month. The Pro level costs $84/month. It offers a variety of features and costs less.
It can implement various strategies that are based on technical indicators.
Is supported on most of the popular exchanges.
#6 Automated Crypto Trading
Bitsgap is best known for its unique trading bots that are automated. Thousands of traders with different experience and skill sets are using Bitsgap every day to increase their returns through the automation of their trading.
Bitsgap’s algorithm is built on a simple but effective technique known as GRID. It assigns investment in proportion to the trading range set by an individual trader. When the buy limit order is filled, a new sell order is placed by the bot just above that price. A new buy order is placed on top of any sale order. The bot trades non-stop so long as the price isn’t higher than the trading range.
The Bitsgap strategy maximizes profits by purchasing low and then selling high as the price rises. Automated bots have all the risk-control features such as Stop-loss, Trailing Up, Take profit, and various exit strategies.
Take a look at this video to understand what the Bitsgap crypto trading bot work:
- Cloud-based, so there’s no need to download anything.
- Trading bots are built on a clear and effective algorithm
- Risk-free trading simulator in DEMO mode
- Backtested Strategies for a quick bot start
- 14-day trial for free
#7 Pre-programmed bots
Some platforms offer robots that handle all programming on your behalf. All you have to do is inform the bot of the location and amount you wish to trade. Additional parameters can be specified like the length of time it will run and when you’re looking to make profits or end up losing.
CryptX Terminal provides one of the biggest selections of pre-programmed bots with an intuitive platform at a very affordable price. CryptX provides a range of portfolio management and trading strategy tools that include arbitrage and signal trading bots like Bollinger Bands and MACD, OBV, and RSI. Accounts can be linked to CryptX via an API key. Once you have that you are able to launch your bots. They also offer backtesting data so that you can determine how a bot did on data from the past.
A free account provides you with access to one bot running at a time on up to 2 exchanges with one backtest every day. Paid plans allow users to connect to all exchanges that are supported and operate up to 10 bots, with 10 backtests every day ($37/month) or an unlimited number of bots, as well as 1000, backtests every day ($74/month). Other benefits include:
- Web-based interface that works in all modern browsers
- It is not required to have coding knowledge
- 30 days free trial of the professional plan
How do I select the best cryptocurrency trading bot?
These are the kinds of questions you should ask when selecting the right trading robot:
Question 1: How trustworthy is this team?
If you are going to put your trust in a bot for your portfolio, the least you can do is ensure that the person who is behind it is as credible and qualified as you can. This can be done using a checklist that is easy to follow:
How many years of expertise does the team have?
What do they have to prove their qualifications?
Do they have the capacity to sustain and grow a solid portfolio?
Does the bot’s function be properly documented?
Where do they get their cash?
It is crucial to ensure that your team is honest about their work. This will allow them to be held accountable for their actions.
Question 2: Is the bot actually following the strategy I want to implement?
Knowing which bot is most compatible with your chosen strategy is crucial. This is why you should visit the bot’s website and read through the various reviews and guides that users have published about the bot. In this regard, you also need to be aware of how involved you have to be when using the bot’s setup. It’s unwise to sign up to a bot that requires more technical skills.
What is the strength of the team? is the team’s support? the team?
The second thing be looking at is the quality of support provided by the team. Can you easily approach the team for assistance with general support or bugs? There is an easy checklist to prepare for the visit.
Does the business have an active community? It is typically on a platform like Telegram, Discord, or Reddit.
In these communities, is the team communicating regularly with the community?
Are developers providing timely updates or solutions to potential bugs?
Question #4: How expensive is it?
As we have mentioned in the example above The cost of the bot’s services could be as low as $0 and up to $1000 per month. While it goes without saying that the paid bots will generally offer better services than one that is free, you should consider all advantages and disadvantages before committing to the bot’s services.
Question #5: Is it possible to adapt according to different market conditions?
Every bot will execute the same strategy in a distinct method. If you are a fan of a particular strategy then you’ll have to check whether the bot can execute it successfully. You don’t want to miss the potential investments due to poor strategy execution.
Question #6: Finally. Are you able to use it easily?
Although they are extremely useful, most trading bots can be extremely complex. For those who are new to trading, getting into the backend of a trading bot can be an overwhelming experience. This is why you must ensure that you choose the right bot for your level of expertise. It’s an ideal idea to select one that is easy to use, even though it might not have many fancy options, especially if you’re only beginning your journey.
The Plan by Dan Hollings Teaches Crypto Bots for Trading – Conclusion
In conclusion, if you’re looking for a new trading strategy, look no further than The Plan by Dan Hollings. This system teaches you everything you need to know about crypto bots, including how to build your own bot trading process for maximal safety and profit. It also includes a step-by-step guide to setting up your own bot and using it to trade cryptocurrencies. Are you ready to learn more? Click the link below
FAQ
How Do You Trade Cryptocurrencies?
This article will teach you how to trade cryptocurrency as a professional with a little help.
What is a Trading Bot?
Trading bots that trade on cryptocurrency are an excellent tool to make trading more efficient.
What are the benefits of using bots?
Firstly, investors can use bots to make the whole process a lot simpler and streamlined.
What are the benefits of a bot?
Bots are able to manage things such as portfolio diversification, index building as well as portfolio rebalancing, and more.
What are the challenges of trading Bitcoin?
The crypto market is open all hours of the day and can be extremely unpredictable, which is why bots are more frequent than ever.
What is a bot for trading in crypto?
The bots for trading in crypto are automated computer programs that buy and sell cryptocurrency at the appropriate timing.
What functions can a bot do for you?
We’ve touched on this issue before but there are numerous functions that a well-executed bot could carry out for you such as rebalancing portfolio management as well as data collection, smart order routing, etc.
What are the biggest challenges facing trading bots?
The biggest time-consuming tasks that tend to be repetitive and cause unnecessary hassles are the ones that should be automated.
What is hourly rebalances?
You can only do hourly rebalances if you are managing an hourly portfolio.
What are the key factors to success in trading?
#2 Timing Timing and achieving the highest level of precision when trading is important to be successful in trading.
What are the risks of using a bot?
This means you’ll have two options to choose from: Set the alarm every hour to balance the portfolio, and you’ll lose mental sanity along the way.
What is Arbitrage?
#3 Arbitrage The price of an asset can differ across exchanges.
What is Naive Bayes?
#4 Naive Bayes Machine learning is used by the Naive Bayes trading algorithm to forecast the probabilities of an event.
What are the features of bots for trading shares?
These are the features that all bots for trading share: Backtesting. Strategy Implementation. Execution. Job scheduler.
What are the benefits of using exchange APIs?
Accessing exchange APIs allows you to collect market data that is of the highest quality.
What is Job Scheduling?
It is necessary to create a job scheduler in order to execute your trading strategies in a way that is automated.
What are crypto trading bots?
Cryptocurrency trading bots are automated programs that trade cryptocurrency automatically.
What are the drawbacks of using a crypto trading bot?
First, they tend to be expensive. Second, they require technical knowledge to set up and use. And third, they may not work well for everyone.
How Do You Profit From Cryptocurrencies?
That’s why Dan created Dan Hollings Crypto Robot.
What are the requirements for your crypto trading system?
7) Do you have any special requirements for your crypto trading system?
What kind of support do you need?
8) What kind of support do you need after you’ve built your crypto trading system?
What is Dan Hollings crypto bot trading system?
Dan Hollings’ crypto bot trading system works by analyzing the price movements of cryptocurrencies over time.
What are the benefits of using Dan Hollings crypto bot?
This allows the system to profit when the predicted price movement matches reality.
How do I use the program?
To use Dan Hollings’ crypto bot, you must download his free software onto your computer.
What are cryptocurrency trading systems?
Cryptocurrency trading systems are great tools for beginners who want to learn how to trade cryptocurrencies.
What is automated trading?
Automated systems use software to automatically execute trades based on predefined rules.
What are the benefits of manual systems?
However, manual systems are often preferred by experienced traders because they give them full control over their strategy.
What are the features of a trading system?
Both types of systems offer a wide variety of features, including order entry, order management, stop loss, trailing stops, risk management, and portfolio tracking.
Can I use the system?
There are no restrictions on using this system.
What are the risks?
The value of cryptocurrencies fluctuates frequently, so you may lose money if you invest too early or too late.
