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Crypto Trading Bot using TradingView — How to Guide

How-to-guide to create a simple crypto trading bot in TradingView with Take Profit and Stop Loss and then to automate it.

Republished by Plato

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First of all, let us define the main term of this article. What is a Trading Bot? Trading bot refers to using a computer program or system to trade on the market according to a predefined and specified set of rules. In other words, a trader builds a certain algorithm for his trading strategy, which would be automatically executed on the market when all the conditions are met. That is also the reason why we will also use the term algorithmic trading (a.k.a. Algo Trading). 

Algorithmic trading style makes a perfect combination with the cryptocurrency markets, which provide several advantages for algorithmic traders. First of all – volatility, cryptocurrency markets typically have much higher volatility than traditional markets, creating bigger swings in prices and opportunities for traders. Secondly, round the clock trading session as cryptocurrency markets are open for business 24/7. Thirdly, total market capitalization, which is smaller in relation to the traditional markets. Traditional markets are dominated by large multibillion-dollar funds while cryptocurrency markets are much younger, which means it’s relatively less saturated with massive funds and as a result, will not require large capital to start earning from cryptocurrency trading.

On the other hand, large volatility on the young market which never sleeps creates a perfect environment for speculations such as pump and dump strategies. And this should be definitely taken into the account if you decide to trade on the cryptocurrency markets.

A trading bot can trade according to technical indicators, momentum, and fundamentals. Or you can create a much more advanced trading algorithm which can help you to execute orders more efficiently, from routing orders across different exchanges (Arbitrage Trading) to slicing a large order into smaller pieces (automated Iceberg Orders). 

Most popular crypto trading strategies

The 3 most popular crypto trading strategies are Market Making, Arbitrage and Trend Following Strategies.

Market Making Strategy

This is the strategy in which continuous buying and selling occur to capture the spread between the buy and sell price. In order to do that, the trader will have to place limit orders on both sides of the order book to profit from the spread. However, this strategy will have its limitation in a low liquidity environment or during the previous extreme competition. 

Arbitrage Strategy

Arbitrage is the purchase and sale of an asset in order to profit from a difference in the asset’s price between markets. Therefore this strategy takes advantage in the price difference of the same asset on different exchanges. The trader buys digital assets from one market and then sells them in another, earning a profit in the process. 

Trend Following Strategy

The aim of this strategy is to identify the trend of the asset and execute the deals based on the underlying trend.  The Trend Following strategy attempts to acquire gains through analyzing an asset’s momentum towards a given direction. Traders that execute this strategy will enter into a long position when a cryptocurrency trends upwards and sell the position when the trend is reversing.

Depending on the difficulty level of your trading algorithm you would need to use different tools. In its turn, the tools will depend a lot on the level of the technical skills that you currently possess. To keep it simple you can differentiate a bot building exercise in 3 main levels of difficulty: Beginner, Intermediary, Advance. In future reviews, we will go into details of each level and suggest the tools that can be used to create a trading algorithm and how to apply it to the market.

Example of a crypto trading bot using TradingView

For now, let us give an example of the crypto trading bot that could be built using TradingView (TV). First of all, it is important to construct the strategy script,  because the strategy script can be backtested and TradingView will provide the detailed results of your strategy.

The code of crypto trading bot below represents the simple EMA strategy in which the entry and exit occur at the crossing of the fast and slow Exponential Moving Average (EMA). This can be pasted into the Pine Editor of TradingView.

Example of the trading strategy:
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © Wunderbit Trading (WBT)

//@version=4
strategy("EMA cross", overlay=true)

//Inputs
fast_ema=ema(close, 9)
slow_ema=ema(close, 21)

plot(fast_ema, color=color.red)
plot(slow_ema, color=color.blue)

//Strategy Conditions 
entry_long =  crossover(fast_ema, slow_ema)
exit_long =  crossunder(fast_ema, slow_ema)

entry_short= crossover(slow_ema, fast_ema)
exit_short= crossunder(slow_ema, fast_ema)

//Strategy Execution
strategy.entry("Long", long=true, when=entry_long)
strategy.close("Long", when=exit_long)

strategy.entry("Short", long=false, when=entry_short)
strategy.close("Short", when=exit_short)

TradingView strategy result screen should look like this:

trading bot strategy in tradingview

This strategy can be modified by adding extra input variables such as volume or some stochastic indicators, or you could put a take profit and stop-loss targets. 

After the strategy was created and tested, you can create alerts in order not to miss your trading setups. However, in order to do, that you will have to change your script into a study script because it is not possible to apply the alert function to strategy.  

The example of the study script with the same strategy is represented below. 

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © Wunderbit Trading (WBT)

//@version=4
study("EMA cross", overlay=true)

//Inputs
fast_ema=ema(close, 9)
slow_ema=ema(close, 21)

plot(fast_ema, color=color.red)
plot(slow_ema, color=color.blue)

//Strategy Conditions 
entry_long =  crossover(fast_ema, slow_ema)
exit_long =  crossunder(fast_ema, slow_ema)

entry_short= crossover(slow_ema, fast_ema)
exit_short= crossunder(slow_ema, fast_ema)

//Strategy Execution

alertcondition(entry_long, title="Enter Long")
alertcondition(exit_long, title="Exit Long")
alertcondition(entry_short, title="Enter Short")
alertcondition(exit_short, title="Exit Short")

plotshape(series=entry_long, text="Long", style=shape.triangleup, location=location.belowbar, color=color.green, size=size.small)
plotshape(series=exit_long, text="EXIT Long",style=shape.triangledown, location=location.abovebar, color=color.purple, size=size.small)
plotshape(series=entry_short, text="Short", style=shape.triangledown, location=location.abovebar, color=color.red, size=size.small)
plotshape(series=exit_short, text="EXIT Short",style=shape.triangleup, location=location.belowbar, color=color.purple, size=size.small)

TradingView study result screen should look like this:

crypto trading bot study script in tradingview

Now you can create alerts for your trading asset and select the alert conditions and actions. 

But what if the alert is triggered and you receive it while you are not next to the computer, and you do not have the opportunity to execute your strategy. There is a solution to automate your TradingView alerts through the third-party service provider such as Wunderbit Trading, which will make your bot automatically executed on the cryptocurrency exchange that you use. You can create a bot to enter and exit your strategy based on the TradingView alerts.

Source: https://wunderbit.co/en/blog/crypto-trading-bot-using-tradingview-how-to-guide

Blockchain

This Bitcoin HODLer Metric Has Just Flipped Green For The First Time In 8 Months – Here’s What This Means

Republished by Plato

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This Bitcoin HODLer Metric Has Just Flipped Green For The First Time In 8 Months - Here's What This Means

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The long wait is over, or so it appears as Bitcoin holders prepare to set foot into a green zone after seven months of red hot drought.

The earliest signs of a bullish rebound for Bitcoin were sighted on Glassnode’s on-chain metrics this week. Bitcoin users joyfully watched as the index flipped an unprofitable red-run that had gripped hodlers of the apex crypto-currency since mid-November.

Popular crypto expert, Will Clemente noted this latest bitcoin development as a sequel to last month’s net holders position outlook which showed a large sales of Bitcoin coming from the camp of inpatient short-term holders.

Image

What Does This Imply?

The biggest take from this new index is that patient bitcoin holders may now finally see positive returns on their long-term investments.

It also may show that the market has fully corrected holding positions as was seen last month, where Bitcoin’s dip below the $35,000 resistance frightened many new entrants, including young whales (who held large amounts of bitcoin for less than three months), leading to a massive liquidation drive that transferred coins from young holders to old and experienced holders.

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BTCUSD Chart By TradingView

Who are the catalysts?

It is unclear what exactly may have spruced the ground for a much-needed leap up, but one cannot underestimate the impact of Bitcoin’s recent acceptance by the government of El-Salvador. Having emerged as the first of its kind to tear through the government’s veil of financial legitimacy, the scale of its operation and use may now become more expanded than ever before. This is most likely to spur more citizens and governments of other countries to innovate their financial system around the digital currency with growing national acceptance. 

Others may attribute part of its recent success to Elon Musk’s turncoat claims about Tesla returning to Bitcoin, after ditching the currency in a precarious moment.

But one thing inevitably clear, in the world of crypto influencers is the role of Michael Saylor to keep the masts of bitcoin sailing amidst the troubled waters of last month. From a conference to address energy concerns to an additional injection of $1 billion into bitcoin, the CEO of MicroStrategy has done a lot to build resistance for the apex currency.

Going Forward

As Will Clemente spots the early symptoms of progress, it is expected that many investors who remained skeptical about buying and waiting through the dip, would want to cast in their lots before the entry price soars to the point of eroding leverage.

This means more activity for Bitcoin, more health value upshot, and more reward for those who took Robert Kiyosaki’s advice to ‘buy the dip.’

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://zycrypto.com/this-bitcoin-hodler-metric-has-just-flipped-green-for-the-first-time-in-8-months-heres-what-this-means/

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Blockchain

Paraguayan Official Confirms: In July We Legislate Bitcoin

Republished by Plato

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Paraguay’s Deputy of the Nation, Carlos Antonio Rejala Helman, has confirmed that new legislation in regards to Bitcoin will arrive in July. This comes amid growing adoption in Latin America led by El Salvador, which could be followed by Panama as well.

  • CryptoPotato reported last week when Rejala Helman said his country planned to start working on an “important project” that included Bitcoin and PayPal
  • Although he provided little-to-no information at the time about the precise nature of the project, the official confirmed it’s coming in a more recent tweet.
  • Commenting on news indicating that one of Paraguay’s largest entertainment organizations has started to accept various digital assets, Rejala Helman emphatically asserted, “This is Paraguay. July we legislate! #Bitcoin.”
  • This comes shortly after Gabriel Silva, a Panamanian congressman, laid out plans to present a bill on cryptocurrency adoption as a legal tender as well.
  • He believes Panama should not trail other nations from the region that have already taken steps to legalize Bitcoin.
  • Naturally, he meant El Salvador. The small country located in Central America has been the leader in terms of BTC adoption.
  • As reported recently, the nation officially voted in favor of a new rule making Bitcoin a legal tender within its borders. El Salvador’s President, Nayib Bukele, further outlined his support for the asset and even urged miners to mine BTC with the thermal energy of the country’s volcanoes.
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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/paraguayan-official-confirms-in-july-we-legislate-bitcoin/

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The End of NFTs? NFT Sale Transaction Volume Down 95% Since Early May

The NFT price crash that started in May is continuing. What does this mean for non-fungible tokens?

Republished by Plato

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The drop in non-fungible token sales that began in early May seems to be continuing into June.

Finance Magnates previously reported that according to data from NonFungible.com, the week-long period surrounding the NFT market peak at the beginning of May saw $170 million in transaction volume. By the end of the month, that figure had collapsed to just $19.4 million in NFT sales, a decrease of roughly 90%.

According to a new report from CNBC, the drop has continued. On June 15th, the seven-day average NFT transaction volume had fallen to oust $8.7 million. Compared to the market’s peak in early May, the new number represents a drop of nearly 95 per cent.

Is this the end of non-fungible tokens?

via Protos

The Boom and Bust of Non-Fungible Tokens in 2021: A History in Brief

While this may not be the end of NFTs, it’s certainly the end of an era. Riding on the tailwinds of the biggest crypto bull market in history, non-fungible tokens made a serious splash when they entered the mainstream in March of 2021. By that point, NFTs had already been around for several years.

However, they had never previously captured the public imagination in such a big way. Investors and speculators saw a new opportunity to try and win big in a rather novel financial market; artists and creators saw a new opportunity to monetize their work in the digital world.

For some, the opportunity paid off–big time. Graphic designer Mike Winkelmann, also known as “Beeple,” sold an NFT for a record $69 million at a Christie’s auction in March. Around the same time, Twitter CEO Jack Dorsey, sold a tokenized version of his first tweet for $2.9 million the same month. Grimes, Eminem, 3LAU, Lindsay Lohan, and many other celebrities also cashed in on the trend.

However, it wasn’t long before the cracks in the walls of the NFT space started to show. Critics of non-fungible tokens decried the practice of minting them, pointing to the possibility of heavy carbon footprints. Many smaller creators who were entering the space for the first time quickly discovered that someone else had already stolen and tokenized their work, much to the chagrin of the collectors who had purchased the fraudulent tokens.

Additionally, reports of “vanishing” non-fungible tokens began to hit headlines as questions about what it really means to own a non-fungible token went unanswered. Because the material that an NFT is associated with is not stored in a Web 3 environment, it is subject to the same kinds of problems that all centralized media is: if an NFT-tied photo disappears from the web, well, tough luck.

Now That the Hype is Over, What’s Next?

At first, the criticisms of non-fungible tokens didn’t seem to significantly affect the space. However, when cryptocurrency markets were hit with bearish forces in mid-May, non-fungible token markets were decimated. Analysts who operate outside of the cryptocurrency space have written the whole saga off as another crypto fad–novel, exciting, and perhaps interesting, but essentially vapid and hype-driven.

However, Gauthier Zuppinger, the chief operating officer of Nonfungible, told CNBC that the NFT market movements of the last several weeks are closely related to one another: “The thing is that, each time you’ll notice such a quick increase on any trend, you’ll see a relative decrease, which basically stands for a market stabilization,” he told CNBC.

via CNBC

And indeed, data from Nonfungible.com show that after this 95% decrease from the NFT market peak in early May, NFT sales are basically continuing along the trend of slow and steady growth that has been trending over the past several years.

“High-profile NFTs selling for millions of dollars was a sure sign that the market was treating them as speculative assets,” said Nadya Ivanova, chief operating officer of L’Atelier, speaking to CNBC. “And by definition, markets for speculative assets are unstable and liable to dry up.”

“The bigger question for NFTs is their long-term value, which we believe is likely significant,” she continued.

In other words, now that the hype is over, non-fungible tokens can continue along their path of technological discovery.

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NFTs in Virtual Reality and Beyond

While the most commonly known use-cases of non-fungible token technology surround the concepts related to digital authenticity and ownership on the internet as we know it, some innovators are exploring an entirely new environment for NFTs: virtual reality.

Forbes recently reported that Space Force partnered with digital artist companies WorldwideXR and VueXR to release their own NFTs with augmented reality features. According to the report, the NFTs are accessible to their owners through the VueXR app, which is available on both iOS and Android.

“As augmented and virtual reality technology matures, normal people are going to spend more and more of their time — and therefore money — in virtual environments,” Nadya Ivanova told CNBC.

Non-fungible tokens have already made a splash in the gaming world as technology that could make decentralized ownership of in-game assets into a reality. However, as gaming moves increasingly toward virtual reality, NFTs could take digital ownership to the next level.

“World-builders in VR are looking at ways to make world building a lot more profitable, but there are few companies that are willing to put down money for a virtual world,” said Dale Deacon, who is an expert on developing immersive storytelling in VR & AR. He was speaking to VRScout.

NFTs could provide a path toward real-world monetization in virtual economies. “Monetizing the job of being a VR world builder, will be a part of monetizing the role of a world builder.”

Now that the hype is being washed out of the non-fungible token space, it’s possible that VR innovators could explore their use cases in a more serious way. “I’m interested in AR and VR spaces as NFTs [because] they have a practical value,” said Dale, adding that “the hype around NFTs” made them a bit “myopic.”

While NFTs may not be the end-all, be-all for VR world builders and other creative economies, they could be part of an important shift that allows creators to have access to new kinds of economic tools.

“The shiny thing that NFTs are at the moment, is not the end goal of this whole decentralized finance – where standard banks have proper competition for once,” Deacon explained.

Now that the Hype is Over, True Innovation Continues

Beyond virtual reality, non-fungible tokens are also finding new use cases in the music world. Others

“We have only seen the tiniest part of where this is going,” said Geoff Osler, CEO and co-founder of NFT app S!NG, to CNBC. “Cryptocurrency is here to stay — and NFTs mean there is now something to buy. It’s the other side of the equation. And this is going to go a long way past digital art. We think music is next.”

Other use cases for non-fungible tokens have been identified in identity, travel, live entertainment, medicine, supply chain, and many more industry verticals. Still, quite a lot of innovation will likely need to take place before the technology can take hold in any industry in a meaningful way.

Now that the NFT hype seems to be over, companies and innovators that have been working to improve non-fungible token technology will continue to build for the future. Watch this space.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.financemagnates.com/cryptocurrency/news/the-end-of-nfts-nft-sale-transaction-volume-down-95-since-early-may/

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