The creation of trading bots is no longer the reserved privilege of coders and developers. Today, any trading strategy that can be written down in simple English is capable of becoming an effective trading bot by following a few simple steps.
Trading bots represent a significant aspect of the cryptocurrency ecosystem. By using them, traders are able to keep up the pace with the extensive market volatility and also maximize trading opportunities even when they are not physically present.
Keeping pace with the markets
The number of cryptocurrencies in existence today and their comparative difference in price movements provides enormous opportunity for investors and speculators who seek to profit from the cryptocurrency market. The opportunities therein arises from both trading cryptocurrencies against one another and trading them against fiat currencies.
Keeping up with the opportunities that the market presents is almost unachievable, especially with the existing level of market volatility. Over the years, computer algorithms that analyze trends and execute trades based on specific instruction have become a popular aspect of the markets. These algorithms are created in the form of bots and are connected to exchanges from whence they interact with the global market for either cryptocurrency, stocks or commodities.
Capitalise: The DIY algorithm maker
By developing a platform where individuals can create their own independent bots by simply typing out instructions in plain English, Capitalise has opened up the opportunity for unlimited realization of trading goals.
On the platform’s DIY algorithm maker, users simply type in plain English what they want their algorithm to do, and the system/SaaS translates it into a real live and working algorithm that can be connected on an exchange (like Binance) and operates as configured.
Creating a trading strategy is basically achieved by studying market behaviors, and often with the help of statistically adapted indicators. Therefore, traders’ strategies are simply a set of rules that are determined by expected market behaviors or a function of the adjustments of their preferred indicators.
The example below shows a typical set of rules to enter a trade as enabled by the Capitalise platform.
The process involved is as simple as filling out a regular form on the internet. It does not require any extra knowledge or special skill in computer language. All that is needed is the ability to type out a trading idea in plain English as shown in the above example.
The same process applies when closing a trade. Based on the ideals of the trader, a set of instructions are given for which once they are fulfilled, the trade is closed. The picture below shows a typical example of an automated “close trade” algorithm in creating a bot on Capitalise.
As shown in the picture above, activating the “IN LOOP” function allows the entire trade execution process to keep repeating itself whenever the entry and exit trade conditions are met. Hence, the created bot can keep trading on behalf of the trader for as long as it is live and active on an exchange whether on a physical computer or a virtual machine.
At the end of every bot creation process, traders have the opportunity to review the created algorithms. First of all, a summary of both the trade entry and exit instructions are presented in plain English. Beyond that, the “RUN SIMULATION” button activates a risk-free test process which reveals how the algorithm will perform under real-time market conditions.
The “LET ME FIX IT” option allows for editing and correction in the event of any observation by the trader that might lead to performance that may not meet expectations. Once the trader becomes satisfied with the created algorithm, it can be launched by clicking on the “CONFIRM” button and the bot is live.
Bot creation has always been ascribed as a reserved privilege of only coders and developers with knowledge of computer programming to create these bots. Therefore, most traders either buy or pay subscription fees in order to access them. Besides, these traders totally depend on the trading strategy or philosophy of the bot creators.
This innovation by Capitalise now offers a plethora of inexhaustible benefits. Being able to translate your own trading strategy into a continuously running algorithm rather than relying on the ideas of some coders is a huge plus to the trading adventure. Also by creating a bot, you are bound to become more disciplined to the rules of your trading strategies. The negative emotions of greed and fear which are largely responsible for the losses incurred by traders are eliminated.
Being that a lot of traders do so on a part-time basis, Capitalise ensures that you do not have to always be physically present in order to take advantage of the opportunities that the market present. Moreover, the platform allows for the monetization of an algorithm, in a social model style. Meaning, if I designed a good algo that gives me nice returns, I can allow other people to use my algorithm and take some profit in doing that.