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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

Dogecoin is Everywhere: from Elon Musk to Mark Cuban to John McAfee

Republished by Plato

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Dogecoin has become the center of attention of famous individuals once again. Mark Cuban said that his NBA team had become the largest DOGE merchant, Elon Musk made an electronic-god reference, while John McAfee used its growing popularity to defend his alleged pump and dump schemes.

McAfee Touted DOGE Before Musk

The love story between the CEO of Tesla and SpaceX and the popular meme coin is well-known within the cryptocurrency space. Musk has outlined his support for the asset on multiple occasions.

While some believed that the positive engagements with DOGE came from his trolling nature on social media platforms, Musk has repeatedly found different ways to promote the token. The latest one came on Saturday, as he said that “Doge spelled backwards is Egod.”

His support brought more famous individuals to the scene as well – names such as Snoop Dogg and Gene Simmons. Despite the long-term relationship between Musk and Doge, though, John McAfee recently highlighted that he touted the asset long before Tesla’s CEO.

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McAfee was indicted days ago from the US DOJ for multiple criminal offenses, including his alleged involvement in pump and dump schemes with his “Coin of the Day” campaign. Several years ago, the former antivirus tycoon promoted small-cap altcoins that he supposedly believed were undervalued, but US authorities claimed that he made more than $13 million from illicit schemes.

McAfee argued that the allegations are “overblown” and that he indeed considered those coins to have immense potential. One of them was Dogecoin, which, in his words, “has increased well over 1,000% since I chose it.” Ultimately, he concluded that this was “not a pump and dump.”

Mavs Are the Biggest DOGE Merchant

Another Doge-related engagement from high-net-worth individuals came from the owner of the Dallas Mavericks – Mark Cuban. The billionaire and his NBA team recently announced that they had started accepting Dogecoin payments for game tickets and merchandise on the online store.

A few days later, Cuban updated the community on the performance of this new initiative. He said that the Mavs had received more than 20,000 DOGE in transactions, making them “the largest Dogecoin merchant in the world.”

Furthermore, the start of the reality TV series Shark Tank predicted that DOGE will “definitely” reach $1. With a current price of $0.056, the asset would need a 1,700% increase to reach that milestone.

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Source: https://cryptopotato.com/dogecoin-is-everywhere-from-elon-musk-to-mark-cuban-to-john-mcafee/

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Brad Garlinghouse: XRP Will Continue Trading Even if Ripple Goes Away

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With the impending legal battle between the SEC and Ripple, the CEO of the payment processor said that XRP will endure even if the company doesn’t.

Simultaneously, Jesse Powell, the CEO of the veteran US exchange, Kraken, believes that offering XRP trading carries “huge asymmetrical risk.”

XRP Will Endure, Says Ripple CEO

Ever since the US Securities and Exchange Commission brought charges against Ripple for conducting an unregistered security offering, the company’s executives have tried to defend their position multiple times.

During the latest such attempt, the CEO, Brad Garlinghouse, called the lawsuit “misguided” and noted that XRP had traded in the US for eight years before the allegations emerged.

Furthermore, he laid his case on why Ripple’s native token is not a security and promised that the asset will survive even if Ripple ceases to exist.

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“If you own a security, it gives you ownership of a company. If Ripple goes away, XRP will continue trading.”

Garlinghouse explained that numerous other countries, such as Singapore, Switzerland, and Japan, all have “clarity and certainty” that XRP is not a security. In contrast, the US is “the only country on the planet that has suggested that XRP is a security.”

Consequently, the executive doubled-down on a previous narrative stating that the lawsuit against Ripple is “bad” for the entire cryptocurrency industry, not just the payment processor. This is pushing entrepreneurs to seek other options as they plan to leave the US.

It’s worth noting that Ripple is one of those companies that contemplated moving outside the US even before the SEC’s charges became official.

Trading XRP Carries Asymmetrical Risk

While Garlinghouse believes that XRP will continue trading even if Ripple is no more, Kraken’s CEO recently highlighted the potential “asymmetrical” risks for exchanges during these uncertain times for the token.

He assumed that the Commission has acted in “good faith” when bringing the charges and believes that judges ultimately “tend to side with agencies.”

As such, Powell asserted that if the SEC wins, then the watchdog would “say that exchanges should have known.”

Although Kraken took its time before making it official, the veteran US exchange joined the list of trading venues that removed XRP in January this year.

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Source: https://cryptopotato.com/brad-garlinghouse-xrp-will-continue-trading-even-if-ripple-goes-away/

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Ultra (UOS) hits a new all-time high as blockchain gaming and NFTs boom

Republished by Plato

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Video games and online gaming have become some of the largest industries on the planet over the past thirty years as digital technology and the internet have interconnected people from around the world and transformed us into a global society. 

Decentralization and blockchain technology are gathering steam as a transformative new way to operate and build an ecosystem, and Ultra (UOS) is one gaming-focused project that has been gaining momentum in recent months.

Ultra, a blockchain-based PC game distribution platform, is created for gamers and game developers and it allows users to develop multiple revenue streams, including the ability to resell games and in-game items.

Developers for the project have created a customized version of the EOSIO blockchain designed to offer free user account creation and higher transaction throughput through better resource allocation.

Data from Cointelegraph Markets and TradingView shows that UOS surged 225% over the past month as the price rallied from $0.132 on Feb. 1 to an all-time high of $0.42 on Feb. 22.

UOS/USDT 4-hour chart. Source: TradingView

As seen on the chart above, UOS trading volume hit a record $31 million on Feb. 21 and Feb. 22 following its listing on Bithumb.

NFT popularity provides a boost to Ultra

Non-fungible tokens are one of the fastest-growing trends in cryptocurrency currently and UOS has benefited from their growth. The developers at Ultra have been focused on the technology underlying NFTs as they can enable unique in-game items to be resold in multiple marketplaces and eventually on decentralized exchanges. 

Interoperability between blockchain platforms is also a major topic in the crypto ecosystem, and the team at Ultra is developing and beta testing a new mainnet that will retain the ability to operate on Ethereum.

While UOS is interoperable with the EOSIO blockchain, Ultra developers are also exploring NFT interoperability with several other blockchains including The Sandbox (SAND) and Elrond (EGLD). The project also has an evolving partnership withTheta that will enable live streaming gameplay and cross-chain NFT transfers.

Aside from its main association with the gaming giant Ubisoft, recent partnerships with globally recognized companies like semiconductor manufacturer AMD and Atari have also helped propel UOS price higher in 2021.

Big-name partnerships, cross-chain interoperability and the growth of the NFT sector have Ultra well-positioned to benefit from the bullish momentum in the cryptocurrency market.

The games sector is expected to continue its exponential growth for the foreseeable future and as blockchain gaming becomes more popular, UOS could benefit from having the first-mover advantage. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Source: https://cointelegraph.com/news/ultra-uos-hits-a-new-all-time-high-as-blockchain-gaming-and-nfts-boom

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