Crypto currency buying and selling can be very lucrative. The price fluctuations (volatility) of cryptocurrency mean that good returns can be made in a short period of time. The right timing of buying and selling is the key. The disadvantage is that you spend 100% of your time tracking the prices. Unless this is done automatically with crypto trader software then an algorithm ensures that these buys and sells happen automatically at the right time. I have been doing this for a month and a half now and I have made a nice return. It's not 100% automatic, you still have to adjust a price every now and then or check if everything is going well, but it's largely automatic which makes it a very interesting passive income. These trading robots for private traders have been around since the rise of the crypto market. Today we are talking about Satoshi Trading Bot (STB).
Table of contents
How does a Crypto Trader work?
A crypto trader is software that tracks crypto currency prices and buys and sells crypto currencies according to a preset strategy. The strategy consists of software that recognizes upward and downward trends in crypto currency prices and makes purchases or sales at the appropriate times. Such a software program communicates directly with your wallet of the exchange you use, for example ByBit. All you have to do is enter the conditions for a transaction and the crypto trader can start working for you. The trading bot will stick to your strategy and will not deviate from it. A correctly tuned Crypto Bot can execute transactions more efficiently than you can, which is a big advantage, because a bot is not carried away by emotions that make you buy or sell.
Note: Use these buttons to create the accounts so that you get extra benefits at ByBit and get to the right environment at the crypto trader(go.satoshitradingbot.com). Further down the article are explanation videos with the steps to be taken to create and link to the exchange and crypto trader. In case you can't figure it out with setting up the bot, you can ask for help with setting it up at this URL. (Telegram).
What strategies does the bot employ?
We regularly receive the question, "what is the return difference between the SatoshiTradingBot (STB) strategy and UpDown strategy." In addition, users also wonder about the influence of the entered return percentage on the final result. To answer this, we have run a four traders from September 3, 2020 with the following settings:
Traders with the following currency pairs:
BTC / ETH / XRP / BCH / BSV / LTC / EOS / XTZ and Link
Analysis on the table:
A higher or lower rate of return greatly affects the amount of transactions done. Thus, it determines the amount of transaction costs. With a low rate of return, a trade is sold earlier and a new position is also taken earlier. Side note: This trial was done during a period with a sideways market. This works strongly in favor of an institution with a higher rate of return. The total return fluctuated between 32.9% and 43.6% over the past 3 months. During a trending market with much more volatility it manages to make around 20% returns.
Difference in strategies:
- STB Strategy: buys only when the price trend turns from falling to rising, never during a rise or fall. STB sells only at the time the price trend turns from rising to falling, provided the entered rate of return is met.
- Updown Strategy: buys continuously (independent of price trend) every 1.2% price appreciation and sells once the rate of return is met. This strategy looks at the 1 minute candle,
My strategy?
Meanwhile, I let everything run completely automatically, linking all available coin pairs. I bet on each trader 150 to 500 euro and for each coin I set the SatoshiTradingBot strategy (minimum profit percentage 1.5%). I turn off 'stop buys above' a certain exchange rate completely (bot determines itself), average buy amount 150 to 500 euros (depending on total deposit) and 'maximum open buys' at 2 to 3 pieces. The bot now buys everything automatically on all coins so it can make maximum returns. I set the minimum% between transactions at 1.5%.
By betting several positions per coin (2 to 3), the bot constantly buys additional positions in a falling market so that when the market turns again these positions can be sold. This strategy produces good returns.
If you see my average return per trade it already indicates the average percentage I earn on a trade.
Getting Started with Crypto Trader:
To start trading through the bot, you need an exchange (e.g. Bybit) and you need to create an account with Crypto Trader. Using the buttons below, you can create an account with both with an extra perk. The videos below show the steps you need to take to create it and connect the exchange and trader.
Note: Use these buttons to create the accounts so that you get extra benefits at ByBit and land on the right environment at the crypto trader(go.satoshitradingbot.com). If you can't figure out how to set up the bot, you can ask for help setting it up at this URL. (Telegram).
Create account with Bybit (step 1: if you don't already have ByBit).
Click here and go through the steps to create a ByBit account (if you do not already have an account and takes 2 min)
Linking the crypto trader to ByBit (step 2). Tricky with video? Click here.
Setting the traders at the Satoshi Bot (last step)
How profitable can a bot be?
If you have worked out an effective strategy with enough knowledge of the market you can make more profit with the help of a bot than if you do it manually. The market often moves sideways so you don't always earn from cryptocurrency. It is a tip to hodlen Bitcoin, Ether and or other cryptocurrency by going in for example through DCA strategy and additionally let a bot trade to earn more Euros to live on and/or purchase more cryptocurrency. Trader software helps you trade 24 hours a day and 365 days a year. Make money while you sleep! The bot is always trading. Trader software connects you to your exchange. For example, you can trade via Bybit.
Participation in the trader is free of charge. You only pay a fee on the return you made via the trader. The fee is deducted from the so-called prepaid credit which you have to purchase within the trader itself. This prepaid credit is called credit and is independent of your investment in the exchange! One credit equals one Euro within the software.
The platform of Satoshi Trading Bot gives you the opportunity to let a trader (software application) help you determine the optimal buying and selling moments in crypto currency. For this you need an account with an Exchange or Stock Exchange, on which an amount of euros is available for trading.
The trader can -after your permission- only change the composition of the account's currency (exchange euros for crypto currency and vice versa. For example Bitcoin/Euro - Euro/Bitcoin). The trader can never transfer currency to a third-party account. You can only do that yourself.
Cost?
For every sales order that the trader has made for you, we deduct 20% of the return you have made from your credits/prepaid balance. This means that if at any time you make € 100,- return the bot will deduct € 20,- from your credits/prepaid balance.
How does the crypto trader work technically?
The trader works according to the so-called MACD method. The MACD indicator stands for Moving Average Convergence Divergence and is a momentum indicator calculated by multiple moving averages. The indicator indicates the direction of the trend and the strength of this trend. In addition to this data, the indicator gives a buy or sell signal.
The MACD indicator consists of two lines that are both calculated in a different way. First, the MACD line, it is calculated by subtracting the moving average of the past 26 days from the average of the past 12 days. The second line we encounter in this indicator is the signal line. This is the exponentially measured average of the past 9 days. Both lines make up the MACD indicator. Not only the direction of the lines gives a signal, but also when the lines cross, the indicator gives a signal.
First of all, the MACD (red line) indicates the direction of the trend. With a rising MACD line, the trend is positive; with a falling line, it is negative. In addition to the direction of a trend, the indicator also gives buy or sell signals. If the MACD line crosses the signal line upwards, this is a buy signal. In the opposite case that the MACD crosses the signal line downward, the indicator gives a sell signal. Finally, the indicator says something about the strength of the trend. The greater the distance between the two lines, the stronger the trend. Thus, the MACD is a trend following system based on the moving average. As soon as the blue line crosses the red line there is an upward trend. The trader will then initiate a buy. As soon as the blue line dips below the red line, there is a downward trend. The trader will then initiate a sell for all pockets of sufficient return.
Wow how cool I immediately signed up, this is super, this is what the whole of the Netherlands is waiting for of course. Thank you Kevin.
Dear,
Can you please send me the entire explanation and such by email. I already have a Bitvavo account but want to trade with a bot.
Thanks in advance
Dear Paul,
I may send you an email?
Not succeeding with the videos above?
Greetings,
Kevin
Hi Kevin,
I followed the route through the links but I did not obtain a free €1000 trade fee; Can you do something about this please.
Regards Paul
Hi Paul,
You have to sign up for that through my link and then you will see a green text with '1000 euro welcome bonus'. You will get it back after a transaction. If signing up through my link did not go well, unfortunately there is nothing I can do about it.
Hi Kevin,
Also, could you maybe share a screenshot somewhere of how you set up your various traders? Am curious about this.
Greetings John
What is sufficient initial capital
That depends on how much you want to make from it. You can trade from as little as 50 euros, but if you want to make a living from it, of course you need more.
I think the creator of this bot earns quite well from it.
Bitvavo is the cheapest exchange in terms of fees. It is not mentioned. Other exchanges probably pay more commission to the author of this piece, respectively the Consumers Union.