Hi, course participants!
Today we will discuss another common type of earning in the cryptocurrency market — automated trading.
I can talk in detail about this topic endlessly as since November of 2017 our company has been working on products for automating trading. But the topic can be rather complicated.
Therefore, in 2 lessons, we will try to discuss the basics and practice a little.
What will we learn in this 11th lesson?
* What are the most popular types of automated trading?
* What types of robots exist?
* What are Cryptorobotics robots?
* How to launch robots on demo trading and how to launch them on real trading without transferring money anywhere, for example, from your personal account on the Binance exchange?
So, what is automated trading? It is also called algorithmic trading or algo trading. This is a type of trading in which programs and algorithms make trades for you.
This is where algorithms come in.
Professional traders create their strategies, show us when to open and close trades,
and the algorithms execute these trades for you
while you sleep, travel, or work.
It is essential that algorithms, unlike humans, are devoid of psychological factors, meaning they make decisions without relying on emotions.
A trader may not want to realize a loss while the loss is not yet big and end up losing almost everything.
At the same time, an algorithm will realize the risk where it is specified.
There are dozens of varieties of automated trading.
I will tell you about the 2 most popular and user-friendly to set up — robots and copy trading.
Trading robots are programs that define the conditions for opening and closing trades.
Robots independently analyze the market, and each robot has its own algorithm; there are tens of thousands of successful and unsuccessful robots in the market.
Regardless of the robot’s type, each robot gives a signal, a command to buy or sell a coin.
In Copy Trading or Auto Following the strategy is not managed by the robot; the trader continues to give signals or trade independently,
and the algorithm works to automatically copy the trader’s signals and trades for the user.
The difference between a robot and Copy Trading — is that the robot conducts market analysis and gives signals for opening, while in Copy Trading, the trader conducts analysis and gives signals.
Why do we need algorithms if we can trade ourselves?
A fair question. As soon as you start tracking the rates of at least one cryptocurrency, you will understand that you cannot control during 24 hours when the event to buy or sell will succeed. What’s even more challenging is predicting whether it’s better to buy or sell now.
Now, let’s consider the types of robots.
Desktop single-user robots are installed on the user’s computer.
They only work when the computer is turned on and connected to the Internet. They are very difficult to configure.
Semi-automated robots. They are already on the Internet, but only give signals to buy and sell, and do not make trades themselves.
Fully automated robots give signals to buy and sell and make trades themselves. The robots work regardless of whether you currently have an internet connection or your computer is turned on.
Cryptorobotics robots are fully automated robots.
Our robots independently analyze the market, give signals to buy or sell based on the analysis, and make trades themselves.
Today, I would like to introduce our new robot, which is very easy to manage and has an interesting strategy.
This is the Trade Holder robot. As the name suggests, it both trades and holds funds.
This is a portfolio robot. It independently builds a portfolio of the 9 most promising coins in the market: BNB, BTC, ETH, and others.
The robot’s task is to fix profits for each of the coins as the price rises and to buy them on a new positive market fluctuation.
Until the profit is fixed, the coin becomes the robot’s portfolio asset, and the robot continues to monitor its exchange rate to fix profits.
First, let me show you how this robot worked for me and continues to work, you can see the results on the screen.
And let’s move on to the advantages, let’s figure out why a beginner can connect to this robot:
You can deposit a very small amount — from $100.
Due to the fact that the cryptocurrency market is very dynamic and only shows growth in history, building a portfolio of coins on the crypto market is always a promising way to make money.
And here you don’t need to build a portfolio manually, monitor each of the coins — Everything is fully automated, the robot buys and sells for you, and the analysts of the robot’s strategy have chosen the most stable and promising coins in the market.
Very important! All the money is on your personal balance on the exchange, and the robot is only able to buy and sell.
You can stop the robot and withdraw your money at any time, and you can add balance at any time.
If you compare this with a bank deposit or an investment project, there your funds are frozen for a long time, while here you can add or withdraw money whenever you want.
Also, what is important, the robot has a demo mode, before depositing the cryptocurrency for trading, you can test the robot on a virtual balance
And very good news, there is no subscription price to this robot, it works on Profit Sharing basis and you will pay a percent from the profitable trades only.
I suggest starting this robot now.
Before starting the robot for real trading, especially if this is your first robot, I recommend starting it in demo mode.
Demo mode is a simulation of trading,
it means that the robot will open and close tardes according to its algorithm and based on real exchange rates, but without using your money.
So let’s launch the Trade Holder robot.
- Go to the Cryptorobotics platform.
- Go to the Algo Trading tab and select Robots — Trade Holder
- Switch the robot to Demo mode
- Select Settings
- Select the balance for trading and the amount of one transaction
- Click Save and run
- Monitor the results
When we talk about launching robots for real trading, we first need to study the concept of API keys and find these API keys.
If you have created an account on the Binance exchange and passed verification, you can create your first set of API keys. If you have created a sub-account on our platform, the API keys are already created automatically and you can find them in the exchange accounts section.
So what are API keys for trading?
This is a technology that connects your exchange account with your account on another platform and allows you to create trades for you with your permission.
Thus, when you add API keys to trading with a robot, the money remains on your exchange account, and the robot only has the rights to buy and sell according to the algorithm and for the amounts that you allowed.
The public key is used as the login and the private key as the access password to the commands.
Let’s create API keys. For the Trade Holder robot, we will need a key with permission for Binance or other spot exchange available at Cryptorobotics.
Log in to your verified Binance account and select Account — API management
Create an API key
Add a name for the key
Enter data for two-factor authentication.
Keys are created.
Click on edit restrictions, as by default, the key is created only for viewing.
Add displayed permissions.
Enable spot and margin trading.
Save changes and enter two-factor authentication confirmation again.
Be sure to copy the secret key and/or QR code to a secure folder. The key will be shown to you only once for security reasons.
Do not allow withdrawals on your key, beware of services that require you to check this box!
Now that we have the keys, we can immediately add them to the Cryptorobotics platform.
Go to the platform.
Go to the Exchange accounts tab – add a new exchange.
Enter 2 keys.
Add a description.
The encrypted key is now divided into parts, encrypted and stored in different databases of the system and can be used by you at any time for trading.
After adding the key, the key balance is immediately displayed.
There is also a short instruction on the final slide on how to launch a robot for real trading, but you will need it in a week or two after testing the robot in demo mode, so take the links to the text and video instructions.
If you have any difficulties, you can ask questions to the platform’s support team.
Take away new terms and instructions for setting up the robot.
In Lesson 12, we will launch copy trading with you.
This was Alina, see you next time.