Mike Fishy and Automation System Programming (Bots)


#41

In the unlikely event that we ever meet, I would like to buy you a beer or two or three…or maybe just send you some XVG. These posts are rich (XVG lol)

Are bots good or bad to the markets?
Can you automate the trading process?
(And more importantly, Should you?)

I’ll add some substance
(Here)


#42

Indeed! I’ve already begun thinking of better ways to build out the bots I’ve been working on from what @Mike_Fishy has shared.

Not quite done with the entry decision making bots that find great set ups, but In the meantime, I came up with a new one called “Hawker” for coins that are just going insane lately, like ONT. I call it the “Hawker” and his job is to sell at the highest price possible, without letting price regress too much. Basically, I do the TA to decide likely range of the price spikes and I set a target price accordingly. If the ensuing action breaks out and drives towards that price, it sells as soon as met. If it climbs high and starts to retrace, then sell out at some percentage of that retracement (right now, I’m trying Fibb 0.286 as the threshold retracement range).

The most interesting thing about building bots is that it absolutely forces you to break down to finest details what you’re otherwise doing when conducting TA on the charts and making assessments on what’s about to happen. I also find myself getting better at defining precisely my exit strategies at the outset of every trade.

So from that standpoint, writing your own bots makes you a better trader. And Fishy, #3, “Bots can help stabilise the market and reduce massive falls” belongs in both categories because bots both contribute to destabilizing as well as stabilizing markets. I think principally, bots provide liquidity.


#43

Ok so, Australia is like WTF? Seriously, Mr. Lang I’ve been considering this idea of replication. You are trying to hard code your TA/Personality/Approach/etc into a robot to automate yourself, your skill set.

I’ve been thinking about attack vectors and scams lately. I’ve BSed about scamdroid (mostly as a troll) but I love thinking about adding scam data and even pump dump datasets to robots that recognize shennanigans and $$$ in. :stuck_out_tongue:

Go F yourself internet


#44

Consider taking the volatility such as true range or average true range, or even some measure of standard deviation. I find the average true range works quite well. Fibs are OK but typically the 50/61.8/38.2 are most robust from my experience.


#45

Good point there. I’ve been messing around with Chandelier Exits, but so far, haven’t quite found the right range and multiplier on this indicator that works well with cryptos.

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:chandelier_exit


#46

Chandelier exits are always good. The challenge is what length of the ATR will you use? If trading daily time frames, 20 day look back is default. Intraday, well it all depends.

You could consider multiple chandelier exits with different tolerances. Ie exit a small portion that runs a shorter look back ATR and then run longer look back ATR on that chandelier that exits the remaining portion if the close of that candle is < chandelier exit trigger. Something to that effect. Obviously slippage needs to be taken into consideration because i can only imagine some of these more boutique type of coins wouldn’t have the best of spreads.