Gunbot Crypto Trading Tips Ultimate Guide.
Starting as a crypto trader is not an easy task; with hundreds of indicators, thousands of cryptocurrencies, and hundreds of crypto trading exchanges is really overwhelming to make a decision, to say the least…
That’s why developers create crypto trading tools like Gunbot; to help you survive the crypto trading game.
Gunbot is the ultimate automation tool for many crypto traders, and you can fully automate your trades with fine-tuned strategies or boost your manual trading skills.
If you’re a successful trader already, you can escalate your gains and move up to the next level. Automated Crypto Trading!
Have you gotten your Gunbot License already? If you did, you’re in the right place; because now is your time to invest in learning exactly what this trading bot does before you allow it to handle your hard-earned crypto.
Understand How to use Gunbot, so you can earn more as a crypto trader.
You know Gunbot is a Slick Money-Making-Machine, and you’re excited to put it to generate money for you, but take your time and learn how to handle it first.
I didn’t know much about trading or crypto trading bots when I first got my Gunbot License; therefore, I’ve written this Gunbot Crypto Trading Guide, so you don’t have to learn the hard way.
There are other small details I’ve left out for future articles, but here are the 8 Gunbot Crypto Trading Tips I recommend you now as a new Gunbot user.
Gunbot Crypto Trading Tips – Manual vs. Automatic
First, you need to understand the main differences between manual and automated crypto trading.
Don’t make the mistake of believing that because you’re a successful manual trader, you will turn into an expert bot trader overnight.
Nevertheless, that’s a big part of the learning curve you got already covered, so now let’s help you excel at trading on automatic.
Get ready to adjust your trading style and modify it to match Gunbot’s logic.
Please don’t get frustrated when you notice that things are different than you are used to; embrace the new options you have now, and make the most out of them.
Gunbot keeps going through tests and changes, and almost all features are the way they are because this is what most of our users expect from a trading bot.
Here are some of the main differences you may encounter when comparing it with what you’re used to doing manually.
- The trading indicators in Gunbot are calculated every few seconds instead of every period close.
- In automated trading, hitting a stop-limit order is not always equal to stop trading after that, so you’ll have to tell your bot what to do after hitting a stop-limit order in your strategy settings.
- The crypto exchange won’t give you much historic candle data through their API as you’d expect; this affects the indicators you’re working with. For example, using a 200 period, MA might not always be possible.
Bot trading offers you tremendous opportunities, the main one being “perfectly disciplined” and doesn’t make mistakes (if programmed correctly, of course), but you should be aware of the limitations that may also exist.
We like to say that Gunbot is emotionless, and it is. However, in reality, it can only remove some of the psychological pressures of trading, you as a user still need to know when to intervene and when not to, and your emotions can get in the way of those decisions.
On the other hand, Gunbot won’t hesitate when a trade signal appears (to enter or exit); its quick reaction time will help you in fast-moving market conditions where precision and reliability are critical for executing your strategy.
Gunbot Crypto Trading Tips – Keep it Simple
Always trade with a plan, but start with low risk and a simple strategy so that you can manage it easily.
A “best trading strategy” doesn’t exist, but a good one is the one you fully understand. This allows you to make quick or important adjustments if you see the results are not what you expected.
When you set up a trading strategy in Gunbot, things could get out of hand pretty quickly, if you don’t know what it is supposed to do, it may buy more times than you’ve wanted to, but you didn’t know, and the set parameters told it to do that.
That is not ideal for Learning How Gunbot Works; adding multiple confirming indicators in a strategy could be really effective, but the bot won’t trade often.
You’ll end up shaking your head, asking yourself. Why my Gunbot is not Trading?
But you forgot to keep your method simple.
I would recommend the “Gain Strategy” as you begin. Without any additional confirming indicators or the trail-me option, this will help your bot to fire trades quickly and exactly where you expect them.
After you get the hang of it, you can start fine-tuning your strategy by adding confirming indicators like RSI, ADX, or even do some trailing…
But while you learn, keep the amount you let Gunbot trade with to a minimum, set your Trading Limit as low as the exchange allows; the learning curve may be steep, but it doesn’t have to cost you an arm and a leg. 🙂
Please don’t mix up your Gunbot strategy too much; there are several options to choose from, but you don’t have to use them all in the same strategy.
Gunbot offers plenty of choices to adjust your trading strategies. Having many options is great, but making a super complex strategy may not be a good idea for a Gunbot beginner.
Never forget that every option you enable and every indicator you add makes it harder for the bot to trade.
The more you restrict the conditions by which Gunbot is allowed to trade, the fewer chances it will have to place trades.
Gunbot Crypto Trading Tips – Choose Wisely
Analyze your trading pairs, and choose them wisely.
Gunbot is capable of deal with every different market condition, but you have to keep in mind that not every market condition is easy to deal with, so try not to make it too hard on yourself.
Selecting good trading pairs is a tricky topic, and I could write a mile-long article for that, but let’s keep it simple this time and check the basics.
Keep in mind that the general market sentiment highly influences most cryptocurrency value; most crypto assets have little to non-intrinsic value…
This is good; in my opinion, as a trader, you should be looking mostly at the price action; then, if you think you have some edge, you should be willing to trade that pair even if it has no real intrinsic value.
Here is an example of a pair you should not even try when you first start trading.
Definitely not a whole lot of action there; check how the distance between lows and highs is minimal if you add the trading fees; this pair won’t leave you much room to buy, sell and make a profit from it.
3 Key Points to Keep in Mind when Selecting your First Pair to Trade with Gunbot
- Check for decent volatility; if the market moves up and down at a percentage lower than the percentage of the trading fees per trade, don’t use that pair.
- Check for good trading volume on your chosen pair so you can get your orders filled.
- Choose pairs that are moving slowly up but stay away from big pumps.
Here is an example of a pair that you should pick to start trading with.
The image above shows a good pair that you can easily choose to trade with Gunbot. Notice the price difference between highs and lows and the repeated ups and downs you can capitalize on.
Tip: As a beginner, I do not recommend you going against the trend.
You can analyze your chosen pair’s main trend on a Tradingview chart by adding a Moving Average indicator (or any other trend indicator) in the daily time frame to get a basic market movement idea before you start trading that pair.
Gunbot Crypto Trading Tips – Set your limits
Always set stop losses if you trade any coin that you don’t plan to hold or consider a true “SHITCOIN”.
One of the great things about our crypto trading bot is that you can set it to keep trading continuously. First, buy when your set buying conditions appear, then sell when set profit is hit.
This is also a simple way to buy before the market goes down while you sleep, and then out of nowhere, after a good run, you’re stuck with a bag of coins that are hard to sell at gain fast.
Push yourself to decide on the point of acceptable loss, and use it as a reference point that will help you to measure your strategy effectiveness and determine if you can keep those settings or adjust them for future trades.
Since you’re still finding Gunbot options, setting limits that prevent you from getting into a bad situation is a smart idea.
Set a value on the “Count Sell” parameter in Gunbot to limit the number of your sell orders; this will help you limit the risk and stop trading after you’ve reached your set target.
Set a value on the “Never Buy Above” parameter to check that the “buy orders” are placed at lower rates than the last “sell order.” This will prevent your trading strategy from buying when prices are moving up before later drop down again.
If you use a stop limit, consider the option to stop trading that pair after it hits automatically; you can do so by setting “SL_DISABLE_BUY“: true in your config.js file.
Alternatively, you can set the Stop Loss Disable Buy option on the GUI in the strategies miscellaneous tab.
Gunbot Crypto Trading Tips – Trailing
Take your time to learn how trailing works.
Trailing various types of orders is one of the most effective features in Gunbot, but the mechanics are also difficult to understand new users.
Don’t worry; once you get your head around the concept, you’ll see how easy it is.
The first thing you have to understand before activating the trailing feature is this:
Gunbot trading methods follow the “AND” rule, not the “IF,” “THEN” order; therefore, every strategy condition has to happen at the same time for Gunbot to execute.
This means that trailing can only successfully finish once other confirming indicators still allow for a sell order (using a sell as an example).
Let’s suppose you configured your strategy to allow a sell order only when RSI is between 60 and 100; for this case, trailing must finish while the RSI indicator is between this range.
Gunbot Crypto Trading Tips – Trailing Fundamentals
- Trailing is based on prices, not on indicators.
- If confirming indicators are used in the strategy, trailing will finish when the conditions meet.
- For buying, it will use the “ask” price and the “bid” price for selling.
- The trailing ranges are determined as a percentage of the best bid or ask price.
- The ranges are set around bid and ask at every round when the price moves in your target direction.
- The trailing limits stop when the price moves in the opposite direction of your target.
- When the price moves outside of your target, the ranges are reset.
Why is the Gunbot Trailing Feature Awesome?
Because after it hits your sell target, it will set a new trailing range below the price instead of selling, and as long as the price keeps going up and doesn’t cross that range, Gunbot will wait.
Still, as soon as the price goes down and crosses the trailing stop, Gunbot will place a sell order at a better rate than the initial target.
Gunbot Crypto Trading Tips – Indicators
Understand the function of the trading indicators you use.
Gunbot makes it easy to use the most well-known trading indicators in your trading strategy, learn about them, and don’t waste your time setting up indicators you have no understanding of what it does.
For example, we all love to use “Momentum Indicators.” Still, those indicators are also known as “lagging indicators,” meaning that they will print what happened “after the fact” and definitely can not predict the future nor guarantee that it will be equal to the past.
10 Trading Indicators you can use with Gunbot
- Moving Average (MA)
- Exponential Moving Average (EMA)
- Stochastic Oscillator
- Moving Average Convergence Divergence (MACD)
- Bollinger Bands
- Relative Strength Index (RSI)
- Fibonacci Retracement
- Ichimoku Cloud
- Money Flow Index (MFI)
- Average Directional Index (ADX)
Read More about Gunbot Strategies using some of the above indicators.
It will be beneficial to you to learn exactly what each one of them does, so you can decide which of these trading indicators best suit your strategy.
There are many free resources available, and it really just takes a couple of minutes to get the basic concepts of an indicator. Check out this Investopedia article so you can get an idea of Top Technical Indicators for New Traders.
Gunbot Crypto Trading Tips – Bid and Ask
Recognize the importance of the bid and ask because Gunbot is a “Taker,” not a “Maker“
I mean that Gunbot will only place an order when there is a bid or an ask in the order book, and there is a chance to fill the order once placed.
When Gunbot is looking to sell, it will execute an order when the highest bid price matches the target; when it is looking to buy, it will look at the lowest ask price before placing the order.
This is more important as it may seem, when you’re looking at a chart, you could think that it is possible to place an order at the last price that is showing, but this does not have to be true, because the current lowest ask price can be far above the last traded price.
Gunbot Crypto Trading Tips – Grid and Logs
Learn to read the Gunbot Logs and the Grid
The Gunbot Grid is the Table You See when you look at the Core Console, the Logs is the same information (per pair) in a text document; you can find it in your Gunbot Logs folder.
If you’re serious about making the most out of your bot, you are going to experience situations where you will be questioning why your bot did not trade in a particular scenario.
You should know that detailed logs are kept for each trading pair in your “Gunbot-Logs folder”; your understanding of it is crucial if you want to figure out your bot’s behavior.
The 2 Most Important Pieces of Information on the Gunbot Logs
- Buying: The Ask price has to be equal to or lower than your “Entry Point” for the bot to buy.
- Selling: The Bid price has to be equal to or higher than your “Exit Point” for the bot to sell.
Sometimes you could see what looks like a trading opportunity in the charts, but if you check the logs, you may find that the bid and ask prices just weren’t at the price the chart showed you.
The logs and the grid show you the information exactly as Gunbot sees it; use it to adjust your trading strategy accordingly.
Gunbot Crypto Trading Tips – Console Grid Example
Gunbot Crypto Trading Tips – Final Words
Keep learning, focus on understanding Technical Analysis which will help you improve your performance and gains.
3 Mistakes Every New Gunbot Crypto Trader Should Avoid
- Don’t get emotionally attached; trade what you see happening in the market, not what you believe should happen.
- Follow your plan, stay consistent don’t start changing your initial strategy every day. Don’t over-think it.
- Look for high probability setups, but always have an exit plan that includes a risk management method.
Discipline is the toughest yet the strongest tool in trading. Take Advantage of Crypto Trading Automation Tools like Gunbot to help you develop a disciplined approach so you can profit from your daily trading.
There you have it. I hope you benefit from these 8 Gunbot Crypto Trading Tips for New Traders; if you apply these simple rules, you will become a successful Gunbot Trader in no time.