Botcrypto Monthly Report #22 – November 2020

We just finished one of the most important months in Bitcoin’s history, at least in the history of its prices, with the highest monthly close price ever! It’s even more motivating to develop trading bots in these conditions, so here is the very large list of news from the last few weeks.


Development

Here is the list of the main new features of the last few weeks on Botcrypto, the platform to create easily and quickly cryptocurrency trading bots.

  • The Botcrypto rating reveals the best strategies of the strategy store at a glance. Full details on its calculation are available here.
  • The automatic classification of market trends over the week makes it easy to find the most bullish/bearish market. We have written an article on how this classification works (only in French at the moment).
Screenshot of the trends
Trends are displayed on the dashboard by clicking on the Trends button.
  • The addition of advanced parameters for strategy indicators, such as the Multiplier that allows to make conditions like “When the price is above the EMA +3%”. The Buy EMA9 rebounce strategy is a good example.
  • From now on, you no longer need to create an account or be logged in to view the store’s strategies (click on the link above to see!). This makes it much easier to share strategies publicly.
  • Follow the evolution of the strategy in real time with the display of the current state of the bots.
The current state is displayed with a gold border!
The current state is displayed with a gold border!
  • The suggested backtest periods are now much smarter and correspond to the TU of your strategy. The TUs of the strategies are also displayed directly on the strategy card. No more need to call your strategies Buy EMA 4H 😉

We plan to continue at this pace in the coming months, so don’t hesitate to suggest improvements on our Discord server where we are already close to 500 traders! You can also vote for the next features directly on the dedicated page.

The LOCKDOWN Contest

The LOCKDOWN Contest, the free and educational contest that we have set up has been extended for 15 days. You can thus continue to use this space to learn and improve your trading skills. Feel free to share your successes, failures and questions on our Discord server (again!), which also displays daily contest rankings.

The best traders of our contests are published on Discord
The best traders of our contests are published on Discord

The Shark Week

We had the pleasure of hosting the Shark Week, the trading competition organized by the Transaction and Plug’n’play associations of the emlyon school. More than 300 students discovered bitcoin and crypto trading during one week thanks to Botcrypto’s virtual trading features. The results were quite good, as more than 20% had positive results. Congratulations!

In this context, we also spoke at a webinar entitled “Les cryptomonnaies : quels enjeux ?” where we discussed many topics related to cryptocurrencies: news, advantages and disadvantages, regulation… It is available in replay here.

Les cryptomonnaies : quels enjeux ? by Constantin De La Roche and Théo Poizat
Les cryptomonnaies : quels enjeux ? by Constantin De La Roche and Théo Poizat

With an ATH that has been hit several times recently and high volatility, cryptos trading bots are particularly interesting at the moment. So, what are you waiting for to (re)launch yours on Botcrypto? 😉

Black Friday 2020 : subscribe once = get one free

For Black Friday 2020, we are very happy to offer you an offer never seen before on Botcrypto!

For this occasion, all subscriptions are simply doubled! This means that if you buy 6 months of Silver subscription, you will receive 6 months of additional Silver subscription! You will be able to enjoy all the advantages of trading bots on Botcrypto 2x longer! 😉

Terms

All subscriptions taken between November 27th at 2:00 pm (Paris time) and November 29th at 11:59 pm (Paris time) will be eligible. Subscribers will receive a gift code corresponding to the doubling of the subscription within 7 days after the end of the operation, within the limit of one year of subscription.

Update: The Black Friday offer is also valid during French Black Friday, i.e. for all subscriptions taken on Friday, December 4, 2020 (Paris time).

Why is virtual crypto trading ideal to get started in crypto trading?

When you start in crypto trading, you have to learn a lot of things, and very quickly. First you need to master the basics of trading (see our articles about trading), then fundamental analysis and technical analysis, and finally you need to build a strategy and apply it while managing your emotions and risk.

Anyone who discovers a new field makes mistakes, and trading is no exception. The only problem is that in trading, mistakes are expensive, literally. An interesting solution is therefore to practice with a virtual portfolio, or dummy portfolio, with simulations. Here is a short overview of what crypto’s virtual trading is, and its advantages.

What is a virtual portfolio?

Many trading platforms offer virtual portfolios. On Botcrypto for example, you can create a virtual portfolio with a virtual $10,000, and pretend it is your first investment in cryptocurrencies. You will be able to buy Bitcoin (BTC), but also Ethereum (ETH) and other Altcoins like Ripple (XRP), or Dogecoin (DOGE). You will be able to see the evolution of your funds and investments in complete security, and discover trading by practice!

Managing your emotions

You probably already know that cryptocurrency is a highly volatile asset. At the time of this writing, Ripple (XRP) for example has taken more than 100% in 2 days.

Capture d'écran de la paire XRP/USD prise sur TradingView le 11/24/20
Screenshot of the XRP/USD pair taken on TradingView on 11/24/20

Knowing how to manage your emotions is essential in trading, and even more so in cryptos. You must avoid panic and euphoria at all costs, but also FOMO (Fear Of Missing Out), the fear of “missing the train”. Trading with a virtual wallet allows you to feel these emotions, to understand what it feels like to have “missed the train”. If you see from one day to the next that your portfolio, even virtual, only takes 10% while another asset has taken more than 100%, you quickly feel this sensation, this “if I had done that, I would already be rich“. And you can tame it to control it.

Hold on the long term

It is often said that 90% of stock market traders don’t last more than 6 months, and the number is surely the same in the cryptos. That’s why learning about trading only a few days before investing and trading all your savings is a bad idea. It is also necessary to pay attention to successes. Just because you win in the first week doesn’t mean you’re a good trader. The important thing is to keep the distance. To be profitable 1 year, 2 years, even 5 years later. Training with virtual portfolios is the possibility to see your virtual capital evolve over several months or even years, and prove that you can hold on the long term.

Configure your fictitious portfolio on Botcrypto, and hold on for the long term
Configure your fictitious portfolio on Botcrypto, and hold on for the long term

Testing new strategies

Finally, virtual trading is the possibility to test new strategies in complete security. You are an experienced trader, with a strategy that works, but you want to experiment with new indicators, or even a new strategy? Backtests and simulations will be your best friends to save time, and quickly and safely evaluate if your strategy is interesting.


So obviously, some will say that it is not the same to trade with a virtual portfolio compared to real funds. And I completely agree. With real funds, emotions are multiplied. But virtual trading, if applied correctly and with good will, allows a first complete immersion in trading, and thus safely accelerates one’s learning of crypto trading.

If you want to learn crypto and bitcoin trading, botcrypto is for you! You can create virtual portfolios easily before getting down to business. Everything is explained in the video below.

Botcrypto Monthly Report #21 – October 2020

Backtest configurations, new indicators and states, new project on crypto friendly services, contests, here is the Monthly Report #21!


Development

Discover below all the major updates of the last few weeks. Many bug fixes and small interface improvements have also been deployed. You can find them on our Discord server where we share all the updates on Botcrypto on a daily basis.

Backtest presets

With the backtest configurations, no more filling of the same backtest settings multiple time. With one click, you fill in all the fields with preset parameters. It’s perfect for iterating on a strategy step by step. We love this feature at Botcrypto!

Backtest presets on Botcrypto
<3

Indicators and states

Multiple indicators have been added :

  • Choppiness Index
  • Commodity Channel Index
  • Elder’s force Index
  • SuperTrend

We have also improved the Wait state to be able to wait until a certain time of the day.

Onboarding and tutorials

With Botcrypto, we have designed the simplest and most intuitive interface possible to make cryptos trading bots accessible to all traders. But having a simple and intuitive interface is not enough. It is also necessary to guide traders in learning how to trade (which we propose with the blog), and in understanding the concepts of trading bots. This is why we have completely rethought onboarding and tutorials. Here are the new features:

  • a step-by-step tutorial to create your first strategy and your first backtest (which you can redo by clicking on the Help button in the top right corner of the Botcrypto interface)
  • a new Helpdesk with more content

Trading Contest #1

Trading Contest #1 ended on October 15th. 70 participants traded on two virtual portfolios of cryptos for almost 2 weeks. Congratulations to bob’, the big winner of this edition. You can now read his testimony in the article dedicated to the results of the Trading Contest #1.

Crypto Friendly Services

After more than 3 years of activity in the cryptocurrency sector, we have discovered that many professional services are blocking the use of their services by companies working in the cryptocurrency industry. This is a waste of time for all the players in the ecosystem. This is why we created Crypto Friendly Services, the collaborative list of the best crypto friendly professional services. Initial feedback has been very positive, and the project has been shared on bitcoin.fr and in 21 millions, Grégory Raymond’s newsletter.

Suggest other crypto friendly services and share the project! Thank you!

Thank you all for reading this Monthly Report #21, and see you soon on Botcrypto!

LOCKDOWN Contest

Dear readers,

France is now running into its second lockdown due to COVID-19. So I offer you to leverage your time during this period to learn and improve your knowledge and trading skills with the LOCKDOWN Contest. It’s a playful and useful activity for everybody expecting to make money with automated trading in the future.

In the middle of every difficulty lies an opportunity.

Albert EINSTEIN

We organize a special trading contest during the whole lockdown period on botcrypto.io. As other trading contest, it’s free and without risk. Challengers will compete to increase as much as possible their virtual wallets on actual crypto markets.

It’s a great opportunity to learn about trading, discover technical indicators, testing strategies and be ready to start trading for real afterward.

You can register for free now → https://botcrypto.io/contest/5

We wish you to challenge yourself making your time as much profitable as possible during this period!

After the LOCKDOWN Contest, we will interview the challengers and share our best feedbacks with our community on Discord.

Gold, Silver & Bronze subscriptions will be granted to the first, second and third users in the ranking.

Thanks for the reading. I wish good luck and good health!

[Tutorial] Your first trading bot with Freqtrade

Introduction

Freqtrade is a free and open source crypto trading software. With Freqtrade, you can create fully customizable trading bots, make backtests, etc… The software is developed in python and is compatible with Windows, MacOS and Linux.

Tutorial’s goal : install Freqtrade and perform a backtest with a basic strategy

This tutorial is intended both for people wishing to create their first crypto trading bot and for curious people wishing to discover how Freqtrade works. Freqtrade does not offer a graphical user interface, and it is rather reserved for users with technical knowledge. If you want to easily and quickly create crypto trading bots, take a look at our platform Botcrypto. The registration is free!

Prerequisites

This tutorial has been realized on a Ubuntu 20.04 server.

We will need python3 and git.

  • To install the various prerequisites, run the following command:

sudo apt install git && sudo apt install python3 && sudo apt install python3-pip && sudo apt install python3-venv

Freqtrade’s installation

  • First, we will clone the git repository by executing the command below:

git clone https://github.com/freqtrade/freqtrade.git

  • Once the download is complete, we will go to the freqtrade folder:

cd freqtrade

  • Then we will execute as administrator the installation script setup.sh :

sudo ./setup.sh --install

L'installation du logiciel
Installation of the software

For both downloading development dependencies and resetting the git branch, press the <Enter> key to choose the default value (which is ‘no’ in both cases).

Freqtrade’s configuration

  • In order to use Freqtrade, you need to activate his virtual environment :

source .env/bin/activate;

You can now use the Freqtrade commands. First we will choose different parameters for your first robot.

  • Execute the command freqtrade new-config -c config.json
Freqtrade's configuration
The configuration

For each question, press the <Enter> key to choose the default value.

Freqtrade’s usage

  • To create a strategy called test, simply execute the following command:

freqtrade new-strategy --strategy test

A strategy with default values is then created. We will see in a future tutorial how to customize this strategy.

Now we will use this strategy in a backtest, a test in the past. We will need the old market data.

  • Execute freqtrade download-data to download old market data.

Downloading market data can take a few minutes.

  • Once the download is complete, run :

freqtrade backtesting --strategy test

Once the backtest is complete, you will see a summary of its results.

My backtest results with Freqtrade
My backtest results

We can see from the results of my bot that it was not very efficient:

-36.32% in a month in which the market lost only 10.2%. My bot made me lose 3.6x more money than if I had just invested…

We notice that the robot has 20 winning trades against 7 losers which questions us on the reason of the final result. We notice via the Worst day value that one day the robot lost 28.54%, which is considerable. If we had personalized our strategy by better managing our risk, this would not have happened. And that’s the subject of our next article 😉 [Tutorial] Create your own trading bot strategy with Freqtrade. In the meantime, you can consult our guide about trading bots to learn more about trading bots.

What is a trading bot? How does it work?

Trading bots are the object of many fantasies, but what is a trading bot really? For the first article in our guide about trading bots, we believe it is essential to define them, to put an end to all speculation (no pun intended).

What is a trading bot?

A trading bot is software that trades, i.e. buys and sells assets with the aim of making a profit. There are trading bots for all types of assets: for cryptocurrencies such as bitcoin or ether, but also for shares, currencies, etc. Just as a trader will monitor the markets to find the best opportunities, a trading bot will monitor the markets and react to conditions with actions.

For example, a trading bot will monitor the bitcoin/dollar market (BTC/USD), and as soon as the price of Bitcoin exceeds $12,000 (this is the condition), it will sell 1 BTC (this is the action).

All these conditions and actions are pre-programmed by traders (maybe you soon 😉). Of course, conditions and actions can be much more complex, using technical analysis tools, artificial intelligence, etc.

At the end of this guide, you will know everything you need about trading bots

What is the purpose of a trading bot?

Trading bots are generally used to generate profits, but they can also be used to invest more efficiently (e.g. with the Dollar Cost Averaging strategies wel will discuss later), or even to protect your capital.

Of course, a distinction must be made between trading bots for individuals and for companies. The needs are not at all the same, and neither are the budgets… We will speak very little about high frequency trading and arbitrage for individuals since these activities require specific infrastructures.

How does it work?

For anyone interested in knowing how it works, here are some explanations. Without going into technical details, we are talking about a software that:

  • retrieves market data
  • checks conditions (if the price of bitcoin exceeds X €, if the exchange volume increases by Y%, …)
  • execute actions (sell Z BTC, …)

And that’s it! Thanks to a dedicated interface, called an API, a trading bot can send orders on your behalf directly to your preferred exchange. For this reason, you generally need to provide API keys to all services that use an API. This is simply to identify and authenticate you.

General operation of trading bots (in French, sorry!)
General operation of trading bots (in French, sorry!)

Finally, a trading bot must be operational 24/7, otherwise it loses much of its interest. This is why they are usually deployed on servers in the cloud. We strongly advise against hosting your trading bot yourself without having the skills and the time. If you want to know more about this, join our Discord server to discuss with our team. We will be happy to discuss this with you.


Now you know what a trading bot is, and even how it works! Now you want to know what the real advantages of trading bots are? That’s good, that’s the subject of the next article!

The 4 real advantages of trading bots (and their limits)

Welcome to the second article of our guide about trading bots! Trading bots are becoming more and more common, especially in cryptocurrencies markets. They are attributed many qualities. Some people think they are THE solution to get rich easily and quickly (spoiler, it’s not so easy and fast). Others think, on the contrary, that it is a scam and that there is no point. After 3 years of working on Botcrypto, we are convinced that trading bots have real advantages, but also limits. That’s why we will see in this article what you can expect from trading bots, and what you can’t.

Can we invest more efficiently with trading bots? We will see!

The 4 real advantages of trading bots…

1. Trading bots are operational 24/7.

Unlike us, trading bots are operational 24/7. This is particularly interesting for cryptocurrencies like bitcoin, where markets are continuously open. This means you no longer need to monitor the prices of your cryptocurrencies in the evening, at night, at the weekend, at work, etc. You save time.

2. Trading bots offer new opportunities

Between their permanent presence on the markets and their ability to process a lot of data simultaneously, trading bots offer new opportunities that humans would not be able to seize. Taking advantage of the best prices at any given time, analysing large amounts of data instantaneously to determine entry and exit points, everything is possible for trading bots that bring the benefits of IT. You gain in efficiency.

3. Trading bots don’t give in to their emotions

Emotions are the trader’s worst enemies. And a trading bot, since it is a bot, does not give in to his emotions. He doesn’t panic (neither up nor down) and applies rationally what he was designed for. This avoids the risks of FOMO, Fear of Missing Out, i.e. the fear of missing an opportunity. You gain peace of mind.

4. Trading bots react quickly

For the same reasons, trading bots react quickly. Very quickly. Not to mention high-frequency trading, which is another subject, trading bots can analyse a lot of data and act accordingly much faster than a human. They will have no hesitation. In highly volatile markets, such as with cryptocurrencies, the ability to react quickly is a considerable advantage. You also gain in efficiency.

… and their limits !

First of all, remember that trading bots only do what they are told. There is no magic. You have to pay particular attention to the configuration, and provide safeguards. Risk management is essential. And as usual, you should not put all your eggs in one basket.

First of all, remember that trading bots only do what they are told. There is no magic.

We can also talk about other limits:

  • Cost. Trading bots always involve costs. Regardless of the model (subscription, commission, profit, …), these costs must be taken into account in the results. The rates vary from a few euros to several hundred or even several thousand euros per month.
  • Security. In order for a trading bot to use your funds, you must give it access to your account on a trading exchange by sharing your API keys. Of course, sharing your API keys is not trivial. There are good practices to follow as we have explained in this article on API keys. You must carefully select your service providers to keep your funds safe, and in particular respect our 3 rules to avoid being fooled by trading bots (article currently only in French).
There are advantages and limits with trading bots!

You now know the difference the ture and false advantages of trading bots. In the next articles, we will learn how to use them correctly to get the most out of them. Do you see other advantages and limits to trading bots? Tell us about them in comments! ✍️

Trading Contest #1 results

After almost 2 weeks of trading, Trading Contest #1 is over. It’s time to reveal the winners… Let’s see the results!

The winners

Congratulations to bob’ who takes first place in the ranking! He managed to make his 2 BTCs grow in 2.149 BTCs in 2 weeks, which corresponds to a 7% gain. As we said in the Trading Contest #1 launch post, he wins 100 USDT.

Congratulations also to the two following Unikname users with 4.75% and 3.5% gain. They won 60 USDT and 40 USDT. I take this opportunity to send a message to the two Unikname users, contact us so that we can give you your prizes.

Résultat du Trading Contest #1, le concours de trading de crypto Botcrypto
Congratulations to bob’ !

bob’s interview

Want to know how bob’ won the Trading Contest #1? So do we! Here’s his answer translated in English.

I am more of an observer, and having realised on the market cap that the FYI was very very volatile, I tried to make my balance grow with this currency, trying to place manual orders. I thought it was fun to compete against the bots, using only manual orders.

bob’

For trading bots enthusiasts, one could take it badly… But on the contrary! The important thing in trading is to find your method, the one you master, the one that works for you. Botcrypto is above all a tool at your service. We propose a unique solution to create easily trading bots, but also to send manual order in multiple exchanges, with educational ressources, etc. It’s up to you to make the most of it, just like bob’ did 😉

Next editions

We are very satisfied with this Trading Contest #1! Nearly 70 participants tried their luck, 50% more than in the previous one.

Of course, we are going to plan other competitions, but in different forms. The rules may be modified to bring out other types of strategies. We are also studying the possibility of organising private trading contests and/or sponsored by existing communities in the crypto world. If you are interested, contact us !

Botcrypto Monthly Report #20 – September 2020

New features and Unikname’s integration, Trading Contest #1, we explain everything about this month of September full of new features!


Development

The arrival of Emil and Quentin gave a very pleasant boost to the development of Botcrypto. Here is a short round of updates.

The arrival of labels

To help you better organise your strategies, we have introduced strategies and bots labels. You can create labels, assign them, and thus easily find your strategies and bots according to your criteria. Some sort by market, such as bitcoin and altcoins, others by trend, bull or bear, in short, you determine your criteria! They are also available in a reduced form on the strategy store where everyone can share and import their strategies. If you want to know more about labels, everything is explained in the dedicated article on the Helpdesk.

Labels are the best tool to organize your strategies!

The revival of the strategy store

Let’s talk about the strategy store! We developed it almost two years ago, and it has hardly been updated since then. That’s why we decided to start a major project on the strategy store to make it more pleasant and more intuitive. Our aim is to strengthen the exchange and sharing of knowledge. In addition to the labels seen previously, we have put back in place the rating and commentary system and added the sorting of strategies by rating, by use and by label. Eventually, we will provide new information, such as backtest results, to help you better choose your strategies.

Did Satoshi let a comment ? 😉

The feature suggestion page

We have always wanted to make Botcrypto more open to our users, more community oriented. This is why we have added a feature suggestion page where each user can vote for the next indicator, the next exchange, or even the next features. Let’s vote!

Still a bit empty, the new features page is just waiting for you!

And many other new features

Other new features include :

  • Keltner channels, a technical indicator based on moving averages
  • the ability to create backtests directly from a strategy card
  • a lot of fixes in the bots management page

We have also added a new help center accessible from all Botcrypto pages. It allows you to redirect directly to the Helpdesk or the blog to find the most adequate information. We have other projects planned to help you create the most efficient bitcoins and cryptos trading bots. But I won’t tell you more for the moment…

Botcrypto x Unikname

Alternative connections such as Facebook or Google Connect are very successful, and for good reasons. Unfortunately, who says Facebook or Google, says “big appetite for your personal data”. At Botcrypto, your personal data is just as important to us as our personal data. So when we had the opportunity to integrate Unikname Connect, the French decentralized 1-click authentication solution which ensures that your personal information remains private, we didn’t hesitate for a second!

The operation is simple! From the dedicated application installed on your smartphone, you manage your unique identifier, your @unikname, which allows you to connect. How does it work? When you want to connect to Botcrypto, click on “Connect with Unikname”, you will then receive a notification about your application, enter your PIN code to confirm the authentication and that’s it, you are connected! No need to juggle between dozens of identifiers, nor to use a password manager. The advantage is that your @unikname is stored in a dedicated blockchain, UNS.network, and its operation guarantees the confidentiality of your data. You are in control of your digital identity.

You can log in now with your @unikname on Botcrypto!

In use, logging in with your @unikname is simple, fast and secure. Several team members have tried it and are now convinced! So what are you waiting for to create your own and use it on Botcrypto?

Trading Contest #1

We launched the communication of the Trading Contest #1 at the end of September, and to date almost 50 participants have responded. The objective of this contest is simple: to make 2 BTCs grow for 2 weeks. Everything takes place on a virtual wallet. There is therefore no risk, except that of winning the 200 USDT at stake! Moreover, registration is still possible… Don’t hesitate to try your luck, since everything is possible with trading bots!

Presentation of Trading Contest #1 by Botcrypto
Virtual trading, and real gain, is there anything better?

That’s it for this Monthly Report, one of the richest ever written! The next one should be on the same level, so follow us on our blog and our social networks (Discord, Facebook and Twitter)!