Why I Avoid Manual Trading
Did you know that I avoid manual trading? Even when I make a profit, manual trading adds too much stress to my life, and I prefer to stay away from it.
My Involvement in Hive Finance Projects
As many of you know, I'm deeply involved in various Hive projects, especially those related to finance. Whether I like it or not, I can't escape the reality of constantly engaging in financial calculations.
Understanding Market Makers
For beginners, it's important to understand that there's usually a small difference between the buy and sell prices of most assets, even if it's just $0.001. This is where market makers come into play. Market makers buy and sell asset pairs, adding trading volume while making a profit from the spread. I've tried many methods for auto-trading. My first auto-trading bot was a DCA bot on KuCoin. Later, in 2019, I even developed a basic trading bot for Binance. Now, I’ll try to keep things as simple as possible for Hivers.
Auto-Trading on Hive
On Hive, I have experience with using bots on Hive-Engine through dswap.trade. Interestingly, setting up trading bots isn't as expensive as some might assume.
The Introduction of Hive.Trading
I had been waiting for a public service to offer bot trading on Layer 1, but there were none available. Although some Hive users have their private trading bots on Layer 1, I had wanted to trade on Layer 1 for a long time. Finally, a public service called Hive.Trading entered the scene, and I was excited to test it.
My Experience with Hive.Trading
Here’s a breakdown of my experience:
- I’m using the bot on dlmmqb.oneup.
- I monitor bot activity using Friday bot.
- Since it’s auto-trading, it requires active key permission.
- Use it on an alt account, and keep in mind that you could be rug pulled at any time if the service owner decides to do so.
- The fee is only 3 Helios for a 6-month subscription. When I burned my 3 Helios, it cost me 0.7 Hive.
- If you discontinue using the bot, make sure to pause it, as removing it will require paying the fees again.
- You can pause it by entering 0.001 in the max Hive and max HBD fields.
- I’ve made some profits from trades, and I share my Excel sheets in the Helios Discord from time to time.
- Personally, I didn’t like fully automating the process because I found Hive.Trading bots different from what I’m used to. Not all back-and-forth actions resulted in profits. One day it might show a $41 gain, and the next day it could be a $4 loss.
- I just enter 3 in the HBD field and keep the Hive field at 0.001.
- This way, it only buys Hive using HBD and doesn't sell Hive. I manually calculate from where HBD started buying Hive and check if selling all the Hive will yield more than where I started. If not, I wait for a favorable price. This gives me assurance that it’s not selling Hive at a loss (personal opinion-based loss).
Practical Tips for Beginners
There’s so much more I want to share, but I don’t want to overcomplicate things for beginners. Theory alone won’t be enough to learn auto-trading if you’ve never tried it before; it’s more of a practical approach.
- Create an alt account just for this purpose, as you’re giving active key permissions.
- Transfer some funds to buy at least 3 Helios and have some extra HBD for trading (it should be HBD on L1, obviously).
- Go to the Hive.Trading website.
- Log in.
- Select the "market maker" trading bot.
- Burn 3 Helios when the burning window appears.
- Set HBD to 3 and Hive to 0.001.
- Note in a Google Sheet how much HBD you started with.
- The bot will slowly drain your HBD automatically by buying at different rates.
- Once it’s all drained (check open orders, as you might overlook them), manually check on hivedex.io if trading Hive for HBD results in more HBD than you started with.
Adding a Manual Touch to the Bot
Remember, the bot isn’t exactly designed to trade this way, so I added my manual touch. The bot was created to take advantage of price differences by buying and selling automatically, but I wasn’t comfortable with this approach and had concerns based on my personal opinions.
Additional Resources
Here’s a guide by CoinInstant on how to set up the bot: CoinInstant's Guide.
If you have any more questions, feel free to DM me on Discord, and I’ll help you with your queries. If I don’t reply, please refer to this website: nohello.net.