Ok. I got a few coins that I've been holding for about 8-9 months now and I'm just starting to realize how much money I could have made if I'd been trading the whole time. I've just got the trial version of the Butter Bot software and I'm gonna load a small amount into it during the trial period until I can figure out how it works and how to maximize profits. I'm pretty good at predicting market trends and reading charts, but I just don't have the time anymore. In the current stagnant market environment that we're in right now can someone give me some settings to start with. I read the ones that were recommended when I got the bot, but those were written when market volatility was thru the roof.
The portion I really don't understand is the buy and sell thresholds. Is that the maximum amount of my balance that can be risked for the given period? Someone who's been using this thing for a while help me out here please.
Peace,
Readyrmca
The portion I really don't understand is the buy and sell thresholds. Is that the maximum amount of my balance that can be risked for the given period? Someone who's been using this thing for a while help me out here please.
Peace,
Readyrmca
In order for butterbot to execute an order, the EMAs have to cross and stayed crossed for two consecutive intervals. So let's assume you are using a 1 hour time frame. For a buy order to execute, the fast EMA will need to cross over the slow EMA and be higher than the slow EMA at the close of hour one and hour two. If you set a tick offset, say -10 minutes for instance, then the fast EMA will have to be higher than the slow EMA at 10 minutes before the hourly candle closes for two consecutive candles.
Buy threshold 1 is the first threshold. Say you set it at .15%. The fast EMA will have to cross up over the slow EMA AND with a value .15% or higher than the slow EMA, else it is considered meaningless.
Buy threshold 2 is the second threshold. Say it is set at .3%. The fast EMA will have to cross up over the slow EMA AND with a value .3% or higher than the slow EMA, else it is considered meaningless.
Buy threshold one must be satisfied followed by buy threshold 2 in order to execute an order.
Say your EMAs cross, but the fast EMA is only .12% higher than your slow EMA. Your first threshold won't trigger. If price then shoots up the next hour, and at the next candle close your fast EMA is .35% above your slow EMA, it won't execute a buy order yet, because your first threshold wasn't triggered by the initial cross of only .12%. This cross of .35% will satisfy your first threshold and if the next candle closes above .3%, the bot will then execute a buy order.
I hope this helps.
I know I did not ask this question but it really helps a lot for me. Thanks.
Actually I had a follow up question, if you don't mind. So is this the reason why many people have negative values as threshold one (like -50), so then this threshold will always be met, and then it just looks at threshold 2? Can you also please help me understand why using a large negative value is necessary, why can we not just use zero, for example.
Thanks again.
I use 0 for a buy threshold 1 value and .05 as a sell threshold 1 value, so I'm not 100% sure about the negative value.
However, the likely scenario is that a high negative value, say -50% will negate the principal of having a first buy threshold because the EMA's are virtually always going to be within 50% of each other. Therefor, threshold 1 is constantly met, and you could assume that if the EMA's cross your buy threshold 2 value, that the order will execute within one interval after the cross as opposed to taking two intervals after the cross if you had a "0" or positive value for buy threshold 1.
The reason for using a high negative instead of using 0 would be to execute orders with more sensitivity. Personally, I'm a fan of two thresholds to rule out quick jumps.
This would be the logical explanation, however, I have no experience using negative values, so maybe somebody else can chime in here if they have experience using negative values in their trading.
Well I'm using -50 on both threshold1 and my bot doesn't trade since 3 days ago... is it normal?
What is your second threshold, what time interval are you using, are you currently holding BTC, USD, or both, and what exchange are you using? These factors will all determine whether or not it is normal that your bot hasn't traded in 3 days.
Taking out the first value doesn't have much effect on how often your bot will trade, but more on WHEN your bot will trade. It's very rare that having a positive threshold 1 will result in a trade not executing while having a negative threshold 1 will result in triggering a trade. The difference is that the trade will execute one interval earlier with a high negative threshold.
The only time having a high negative threshold 1 would result in a trade while having a positive or neutral threshold 1 wouldn't is a situation of a flash crash that rebounds before two intervals pass.
Im using this now
And i'm currently holding USD
If there's a good strategy for a market like this, I'd like to hear it too, but really, I think it's mostly just a matter of keeping your update intervals on the higher, safe end (1 or even 2 hours) and nothing silly with the moving averages (no 3/9 kind of stuff). Just keep the number of trades low until action picks up. 
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