There are now the first few guides and trading ideas available in our forum.
The next thing you have to know about every bot is that there is no single on strategy that works for all coins in all market states (high/low volatility and bullish/bearish)! Just like ever trader interprets indicators in a different way (or uses different indicators), all algorithmic trading strategies are developed with different goals in mind.
Simply put: stop looking for the silver bullet, instead:
- Make yourself aware about how much risk you are willing to take. Higher risks, such as margin and futures trading means higher profits, but also higher potential losses.
- Allocate “your” right position size: It is not true that the more capital you put in your trades, the more risky your trading is automatically, as novice traders somethings say. It is however true, that the more percentual gains of your existing capital you want to achieve, the more risky your trading becomes. For example: Trading with 100$ and trying to achieve 200$ (a 100% gain) is very risky. This means you will be “forced” to to margin or highly leveraged futures trades and/or try to catch spikes of some low market cap coins. While on the other hand trading with 10.000$ and trying to get to 11.000$ (only a 10% gain) can be done with little risk, no margin trading within a month while only trading on the top 10 market cap coins.
- Identify your position time: Some traders prefer to keep positions open for weeks, others for hours (day traders) while others just prefer to trade on 5min candles to catch sudden spikes. It is very tempting with a bot to go for the 5min and below algo trading approach. However, for novice traders with less than 1 year of experience how markets work, I advise against that.
Keeping your positions open for at least 3-6 hours with a (trailing) stop and a profit goal is less risky because you won’t make so manic panic sells/buys, will cause less trading fees, and you will get a deeper understanding of how markets work.
Now that you have thought about those 3 points, here are a few concrete examples how you can use WolfBot to achieve your trading goals:
- Planning daily/weekly trades at certain price levels:
This is a guide how to look at support/resistance levels and enter your planed buy/sell prices into WolfBot. If price reaches that level and some indicators you define (such as RSI) match at that price level, then WolfBot will trade for you.
- Trendline Scalping:
Similar to the first approach, but with while keeping your position only open for a few minutes to 1h. Usually used with leveraged futures trading, more risky!
- Short-term Price & Volume Spikes and long-term highs/lows:
This guide opens positions at sudden price and/or volume spikes. You don’t have to set any price levels. Positions are usually kept open for a few hours.
Additionally this guide shows you how to analyze market movements such as trades buy vs sell ratio and high vs low volume trades. You can incorporate that information in other trading strategies.