Trading in any market can be very difficult, especially when emotions take over the trading strategy. Fear Of Missing Out (FOMO) or Panicking when the market is acting a certain way are common feelings that all traders experience. It requires a lot of knowledge and understanding of the market to not let an emotion win, but even the most-experienced traders make mistakes. Also now with Crypto markets that run 24/7, it is virtually impossible to always be watching the price action for that perfect moment to buy.
That’s why sometimes it’s best to use a computer program to trade for you. Through the programming of a Trading Bot, traders can set up a program that allows them to program the execution of trades on an online exchange, defining when to buy or sell and under which conditions. There are many Trading Bot programs on the market, but they all lead to the same issue: everybody has access to them, meaning that the trading strategy is being used by hundreds of others on the market, reducing its effectiveness.
CRIX Exchange offers the first-ever exchange with a crypto trading algorithm feature that enables users to program buys and sells signals, allowing them to test the strategy before launching, which will provide users with useful data to determine potential profits and the success of the trading strategy in the future. This unique feature allows crypto traders anywhere to create their strategy and test it, finding what is profitable before losing money. Smart Trading takes away the emotion of a human being, allowing a single program to control trading without panicking. Although it may sound complicated at first, CRIX has developed a user-friendly interface that allows anybody to program a Smart Trading strategy, without the need of knowing any sort of programming beforehand.
How To Build And Test A Crypto Trading Algorithm Using CRIX
Using CRIX Exchange Smart Trading feature allows anybody to build their trading strategy, using different ideas that will lead to new ways of making profits in the crypto market. By taking out the emotions, a machine will do it all for you. Setting up buy and sell signals is easy. You need no programming knowledge. You can test a lot of different strategies and find the ones that work for you. Like previously mentioned, all the bots that are on the market today are being used by hundreds of traders, turning that trading strategy into an easily predictable one, and unfortunately for many, successful trading is about finding that winning formula that nobody else has.
To begin setting up your trading algorithm with CRIX Exchange, you simply need to register with crix.io. Just by using the programing BOTS feature on this website will let you start the process. There are a few algorithms that you can use for free right from the start, like “Trend Reversal” or “MACD Strategy”. These examples help you to understand how the system works and some ideas for variables. Even though it looks complicated at first, the program will create the basic programming for you. The algorithm is based on Python, which is a well-known programming language used by many developers today. The user-friendly interface has made it a lot easier for users to program their strategies because all basic coding is kind of pre-made for you.
The data used for trading is already being extracted from the exchange itself, letting users set which data they specifically want to use and which cryptocurrencies and capital base are being applied to the trading strategy. You can adapt it in whichever way you want!
For example, the trading frequency can be adapted, which lets you decide when to trade. It can be on a daily base or by minute or range. You can choose how much data you can use for trading. Defining the asset you want to trade is also easily done. For advanced users, there is also Machine Learning which will help you further refine your strategies in ways not possible without a sophisticated AI.
To understand the importance of extracting live information from the exchange you first need to understand a very basic concept. For every price point, there is some logic behind it, every pick or low in prices will give you important information to set up a trading strategy. A successful trading strategy will require that buys and sells we program in the algorithm are based on that information, therefore taking advantage of potential patterns formed in the market that could generate profits. Focusing on price action is the easiest way to approach this.
Even though it can be overwhelming at first, it’s extremely easy to set up. Here’s a video that will walk you through every step needed to program a back-test your smart trading strategy so you can take full advantage of this unique feature only available on CRIX.