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XRP Trade Bot


Sarnos
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Hello guys, I really  got the feeling of not having enough XRP so I thought about hiring someone to create me a trade bot. I already asked someone and he is more or less done with exams and is looking into the topic - the advamtage with him is he does not only have knowledge about the crypto scene, exchanges and programming (obviously) AND his professor forces him to do something quite similar :D.

So I thought about writing to you guys parts of our strategy how the bot will function and maybe you guys wanna help us to tweak it.

The trade strategy will be quite simple actually depending on the version. 

 

Easy version

Buy and Sell between two prices

 

Starting to get complicated version

The bot receives information about the average price development over the last 24h. Depending on the recent price if it drops lower than the average by 1% the bot put in a buy offer for the amout X to purchase. Now the question is how will the bot deal with the sell orders e.g should the bot put up a trade order right after a buy order is completed or wait with some cooldown functions to prevent from selling to soon? Due to we often see smaller price spikes if the price has fallen heavy.

 

Question for you guys

How would you tweak the bot with the goal to achieve a certain amount of money (1% per day)?

What should the bot do with profits?

Would you guys buy a license to use the bot from a thid party?

 

This may look simple now but i think with you guys we can go into depth.

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A couple of tips:

- If you're trading on ledger, the fees are tiny and there are no trading minimums (well other than ticksize) - therefore you can test your bots strategy with insignificant amounts before scaling up (assuming its not a strategy dependent on trading volume).  I recommend doing this as you can answer all your questions in a live environment and get accurate responses from real market experience.

- Also, successful strategies may only work at certain times and not others, or at different time-scales - its rare to find something that works always no matter what, in any given market.  Consider testing different strategies and figuring out if there are particular market conditions that make that strategy successful, and if you can test for that market condition.

Most importantly:

- Only capitalise the bot with what you are prepared to completely lose.  (As that is the downside reality.)  You can also decide what to do with any profits based on this rule.

Edited by Professor Hantzen
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1 hour ago, Sarnos said:

Hello guys, I really  got the feeling of not having enough XRP so I thought about hiring someone to create me a trade bot. I already asked someone and he is more or less done with exams and is looking into the topic - the advamtage with him is he does not only have knowledge about the crypto scene, exchanges and programming (obviously) AND his professor forces him to do something quite similar :D.

So I thought about writing to you guys parts of our strategy how the bot will function and maybe you guys wanna help us to tweak it.

The trade strategy will be quite simple actually depending on the version. 

 

Easy version

Buy and Sell between two prices

 

Starting to get complicated version

The bot receives information about the average price development over the last 24h. Depending on the recent price if it drops lower than the average by 1% the bot put in a buy offer for the amout X to purchase. Now the question is how will the bot deal with the sell orders e.g should the bot put up a trade order right after a buy order is completed or wait with some cooldown functions to prevent from selling to soon? Due to we often see smaller price spikes if the price has fallen heavy.

 

Question for you guys

How would you tweak the bot with the goal to achieve a certain amount of money (1% per day)?

What should the bot do with profits?

Would you guys buy a license to use the bot from a thid party?

 

This may look simple now but i think with you guys we can go into depth.

I used to play around with Cryptohopper. You can choose your Coin(s) you want to trade with and set several indicator rules. Super simple to use. But using it at the beginning of the bear market was a bad idea for me. Setup is easy. Connect your Binance Account (or other) API with it, set indicators, trailing stop-loss, etc. and there you go.

https://www.cryptohopper.com/

ch.thumb.JPG.86e7a928d6c6294f29317d2e49b8d44d.JPG

 

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7 minutes ago, bachmama said:

I used to play around with Cryptohopper. You can choose your Coin(s) you want to trade with and set several indicator rules. Super simple to use. But using it at the beginning of the bear market was a bad idea for me. Setup is easy. Connect your Binance Account (or other) API with it, set indicators, trailing stop-loss, etc. and there you go.

https://www.cryptohopper.com/

ch.thumb.JPG.86e7a928d6c6294f29317d2e49b8d44d.JPG

 

I assume you didn't make any money / increase your stash then?

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10 minutes ago, xrp-pat said:

I assume you didn't make any money / increase your stash then?

No, but that was due to the starting bear market. I actually really liked the bot! But you´ll have to know enough of TA to make it work. The default settings are...meeeeeh...I think I´ve got to use it again now as the bear market seems to be over. I also believe that in a neutral market you can make quite some money with it. I was in testing mode with only 100 bucks invested. Give it a try, it´s a nice bot system.

Edit: It´s free to use for I think 30 days.

Edited by bachmama
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Oh and all is based in the used signals, some are free, some cost money. You´ve got to try them out. It´s really all about the setup. I was able to gain 2-4% daily when market was not plummeting. Thing is, you always have to keep an eye on it. It´s not like setting up and looking again after days! Constant tweaks are important. There´s no "get rich quick button" in there.

Edited by bachmama
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1 hour ago, Professor Hantzen said:

A couple of tips:

- If you're trading on ledger, the fees are tiny and there are no trading minimums (well other than ticksize) - therefore you can test your bots strategy with insignificant amounts before scaling up (assuming its not a strategy dependent on trading volume).  I recommend doing this as you can answer all your questions in a live environment and get accurate responses from real market experience.

- Also, successful strategies may only work at certain times and not others, or at different time-scales - its rare to find something that works always no matter what, in any given market.  Consider testing different strategies and figuring out if there are particular market conditions that make that strategy successful, and if you can test for that market condition.

Most importantly:

- Only capitalise the bot with what you are prepared to completely lose.  (As that is the downside reality.)  You can also decide what to do with any profits based on this rule.

Thanks for your response - We are working with certain assumptions to adjust our bot and "know" when to prevent him from operating

I will give you some examples of our assumptions

- the long term development (atleast of XRP) seems to tend upwards (especially when working with a long term average price e.g 72 hours or more - if you correlate the average price which is observed over a time x with the increase of volume y over time frame z then divide x threw amount n)

- the price of XRP has a certain degree of volatility (otherwise trade for better postions would not work)

- there is a certain market captalisation influx that is not sustainable on short term ( e.g look and december and january if the market cap/ volume increases faster than it is sustainable most assets on the bot need to be liquidated in fiat)

 

Let us assume our bot makes profit, it would not make much sense to to hoard only fiat or e.g XRP so keeping a balance on both behalfs gives you operability in which ever situation (reducing risk and reducing profits at the same time - this though prevents in any situation of being bust (unless a meteor strike us all and it doesn`t matter any way)

 

Edited by Sarnos
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2 hours ago, Trickery said:

If you sell your Bot service how will you prevent Bot clash?

If you mean that they influence eachother well this kind of depends on the settings you choose compared to the ones other people have. But this does not only apply to bots but also betweeen humans. Maybe you want to define clash a bit better?

I had a look at the cryptohopper and I think the payment model for using the Bot could be correlated with the winnings person X achieves so if e.g someone makes winnings of 10 EUR on a trade (after fees etc.) 5-10% of the winnings will be sent to a wallet which matches the digital asset so even if the person messes up, the market crashes or anything else they do not get another asskick from a monthly fee.

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3 hours ago, Sarnos said:

How would you tweak the bot with the goal to achieve a certain amount of money (1% per day)?

What should the bot do with profits?

Would you guys buy a license to use the bot from a thid party?

From my cryptohopper experiences:

1. Bot needs at least simple TA implemented. RSI, EMAs and known resistances, supports to operate. Stop-loss as well as instant position selling mandatory. Different candle time frames as well. You also need to have a fixed selling on percentage gain feature, so once 1.5% is gained -> back to tether or automatic trailing stop!

2. Support for XRP/USDT Trading pair is safest, therefore meaning a bot needs to be connected to an exchange to work.

3. Depends on the possibility to test the bot for a certain time AND having the safety that my wallet adress is not needed within in the 3rd party software

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You can literally build thousands of strategies for the bot.

I think you first need to think in which category you want to operate. And each category usually has different risk/rewards. And there is (almost) no bot that will make 100% sure revenues. As @Professor Hantzen said, each strategy works in a type of market.

My macro categories are:

  • MM --> market making. They provide liquidity to the markets. They work best in low volatility high volumes markets.
  • Arbitrage --> they check for unbalanced markets between different exchanges or across multiple markets in same exchange (triangular arbitrage). They remove liquidity from the market and equalize the markets. They work well in high volatile markets and when different markets have different liquidity and volumes (slow and fast markets).
  • TA --> I'm not an expert here because I don't believe in TA.
  • XRPL enabled --> XRP ledger enabled some "fancy" kind of bots that you can't build on standard markets/exchanges due to its intrinsic characteristics. But I cannot talk about this :P 
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