Hello everyone and Happy New Year! Hoping that 2020 will be as fruitful for everyone as I believe it will be for me. 2019 has given me many opportunities for trial and error and I think now is the time to get on the base of the hill and climb upward.
While I have my simple passive income methods set for now, the one that has always eluded me is automated crypto trading with a bot. I can’t say that it has necessarily eluded me; it is just that, like with any trading, sometimes you are on a good run and other times you are on a bad run. With my current methods of crypto interest and staking, my balance today is always equal to or greater than my balance yesterday. The “bad run” side really bothers me psychologically which is why most people fail at trading. Bots are meant to assist with this so that you stay consistent. But when I see my bot losing, I tended to pull it out of the game.
Well, not this year (2020). I plan to set up a bot, let it run, and maybe evaluate its results after a set period of time. If anyone has any tips on an award-winning setup, please let me know! As I am writing, I am aware that some reading this may not know what a trading bot is or what trading entails in general, so I will give a super brief rundown. As always, if you want me to go more in depth about it, I will in a future post or simply write me and I’ll answer your questions to the best of my ability.
Basic crypto trading (or trading of anything) is the simple concept of buying something when it is a low price and selling it when it is at a higher price and you end up with more money than you started with. Seems easy, no? The hard part comes in on WHEN to buy and when to sell. Traders mostly use some sort of indicator or indicators to alert them to good entry and exit points. But unless you want to spend hours and hours looking at charts and waiting for that perfect entry, you’ll probably want to automate the process in some way. That is where automated crypto bots come in, in particular 3Commas. Of the ones that I have tried, this one was the most user friendly and easiest for me to “understand” and get into. You can test strategies, copy strategies, pretty much anything; all while your crypto stays on your own exchange!
I’ve had 3Commas for several months but had marginal success and probably only logged in twice in the past couple of months. However, I logged in today to fine tune a strategy that I came up with some months ago but completely put that on hold after seeing what I saw when I logged in today. 3Commas has now implemented grid trading as a strategy! To be fair, I think their base strategy was a variation of this. Grid trading is essentially choosing a price range for a pair of cryptocurrencies (a high price and a low price). Then, setting up grid lines equidistant from one another in between those two prices. Finally, as the current price moves above a gridline, it sells some of your holdings and as the price moves below a gridline, it buys more.
For example, let’s say you think the price of a crypto will fluctuate between $10 and $20 and want to set up 9 gridlines in between. You would set up a gridline at $10, $11, $12…$20 and every time the price goes up above one of those lines, you sell about a 10th of your holdings (since you have about 9 grid zones); vice versa for when the price goes below a gridline, you buy about a 10th more. The hope is that the price bounces between at least two sets of gridlines as you should profit every time.
So I’m going to try this out for maybe a week and see how I do. Below is my starting balance.
I am starting with about $400 USDT which is the equivalent of about 0.0561 BTC at this moment and also equivalent to about 3.1056 ETH. I am mostly focused on the first number and the second number as I will be using BTC and USDT as my trading pairs. Hopefully one or both of those numbers goes up. If it does, I will of course add more to it. If not, will try something else. In any event, if you have heard of 3Commas or was interested in using it, please write me! Or if you know a little about it, jump in and sign up to 3Commas here where you get a 10% discount if you decide to join!
Carpe diem.