Gunbot Systematic Trading the Ultimate Guide on How to Trade Crypto Effectively
Gunthy encourages its customers to become disciplined traders and trade crypto responsibly with their Gunbot systematic trading software. Cryptocurrency trading is engaging and fun but is a serious business, and you should treat it as such. Otherwise, it can generate losses that lead to financial and emotional distress.
Learning the basics of crypto trading is as easy as ABC, and you need to gain the fundamentals of price movements. I mean, you can decide to buy low and sell high.
Everyone understands that if you purchase something for $1 and sell it for $3, you are making money, and if you buy something for $3 and sell it for $1, you lose money.
So why don’t most traders do just that? Doesn’t that seem obvious and straightforward?
What about technical analysis, where trading techniques and principles come into place? You can familiarize yourself with chart patterns that reflect the most feasible price movements in the market, trend-following indicators, and all the technical analyses.
However, if you don’t learn how to trade crypto effectively with a systematic trading algorithm like Gunbot and take action for each of your trades, you might find yourself chasing shadows.
All successful systematic traders trade responsibly. You won’t find a successful trader who blames others for losing their money on an asset.
Responsible trading is the first step in becoming a successful trader.
Putting aside emotions and taking full responsibility for your trades, both profit, and loss, is the common trait of successful traders.
Let’s explore the tips and guides to help you trade effectively with a systematic trading system.
What is Responsible Crypto Trading?
Understand what responsible crypto trading is so that you can trade crypto effectively.
Responsible crypto trading is an exercise in control and accountability. It means acknowledging when trading may not suit you, so you don’t go over your means.
Trading isn’t gambling. You should never risk money that you can’t afford to lose.
If you want to make money in the crypto markets, you have to take a different approach. It would be best to feel comfortable enough to trade independently and follow your own rules, which are necessary to profit from trading cryptocurrencies.
To those who want to profit, trading is not a hobby; it is a serious business. If you’re going to make consistent profits, you need to respect what you do and look at each trade as a business decision. Have a plan beforehand and execute it on time.
The first thing you should do when making a trade is to follow your trading plan. An effective trading plan will help you justify the transaction, and it should outline your rationale for making the trade.
You should be clear on your objective and execute the trade actually to make a profit.
The Disciplined and Responsible Crypto Trader
Many beginners approach crypto trading without a plan, however. They fail to take the time to detail their trading strategy correctly, and when they do, they often don’t follow it.
Trading is tough, but those who want to succeed must learn to take responsibility for their crypto trading activities. In “The Disciplined Trader,” Mark Douglas observes that traders avoid creating rules because they do not want to take responsibility for what happens due to their trading.
Some traders pretend that trading is just a way to relax, but that’s not always the case. Mark Douglas says that traders will often use an excuse like “it’s just a hobby” to avoid responsibility.
Did you lose some money? You could minimize your worries by telling yourself that it’s not essential. If you approach trading as a hobby, it will be easier to ignore your setbacks and losses.
However, if you don’t take crypto trading seriously, you won’t be able to give it all you got, and because of that, you won’t be making the Bitcoin profits you’ve been dreaming of.
When things don’t go well, it can be easy to make excuses. It may make you feel good in the short term, but eventually, you will start to notice that you’re avoiding responsibility.
The more excuses you make, the less confidence you will have in your trading decisions.
When you want to make profits, you need to take the reins of your actions. To be an effective crypto trader, you must take responsibility for your decisions and actions.
Taking responsibility doesn’t mean berating yourself when you mess up. It just means taking charge of your trading and gaining more control over your actions.
What’s the best way to handle a market you can’t control? Managing your risk and measuring your trading achievements will help you determine what works for you and what doesn’t.
You can decide which setups to take and which structures to avoid, and you can choose to trade only under market conditions advantageous to your strategies and trading style.
The smart crypto trader will be able to identify what he can and what he cannot control.
If you want to be a winning trader, take responsibility, identify what you can control, and take responsibility for it. If you feel in control, you’ll enter a winning state of mind.
That means you’ll feel relaxed and alert, and ready for opportunities. Once you’re in that state, you can profit big time.
10 Tips to Help You Trade Crypto Systematically and Effectively
Most traders, usually novices, focus on the trading strategy, charts, and indicators—essential elements, without a doubt. But many crypto “victims” miss a crucial point that kills their accounts in the first three months of trading.
Let’s look at these tips to help you manage your account and trade safely.
1. Take Responsibility for Your Trades.
So your first step to effectively start trading crypto is to realize that you are responsible for all of your operations. It would be best to take personal responsibility for your operations, even if you have a mentor, because it is your account and your duty to be in charge of it.
More importantly, if you take responsibility for your actions, you learn about your mistakes and consider it a learning experience.
When you make yourself accountable for missing a bull run, you’re more likely to see loopholes and find out what you did wrong. From there, you can learn not to make the same mistakes again.
Taking responsibility can also help you develop an effective, systematic trading strategy.
If you try to trade everyone’s plan, it may work against you because other people’s approaches may not work for you.
The only way to make a profit is to develop a reliable strategy that you are comfortable with. If you operate based on the opinions of others, you may not feel comfortable and make mistakes — leaving early or holding out for too long.
Ultimately, the most important thing you can do is take responsibility for your trades. If you don’t, you are just counting on luck to come and save the day. And if you’ve ever gambled, you’ll find that this is a terrible long-term strategy.
Once you take personal responsibility for your operations, fantastic things will happen. You can learn from your mistakes and become a more substantial, more efficient trader.
2. Secure Your Exchange’s Trading Account
Account security is an essential part of effective trading. It’s baseless if you’re trading all the strategies of this world and your account is not safe. It’s vital to ensure the security of all your data.
Your account’s security can get compromised in many ways, and a good hacker usually knows how to get around these. Therefore, your account names and password enforcement will serve you to keep people honest.
The use of authentication and choosing solid passwords with symbols can improve your account security. You can easily ask for a PIN or password to sign in every time you turn on the phone or start the computer.
When it comes to protecting your account, there is no room for compromise. You must block all threats circulating on the internet and keep your wallet private and safe. Keep your 12-phrase verification safe also, and make your passwords impenetrable to strangers.
Make sure you’re taking advantage of the security features that Gunbot offers to protect your money. When you first gain access to your GUI, you’re prompted to create your password.
Otherwise, you won’t be able to run the bot. After that, you should make a two-factor authentication, which is not mandatory, but I will highly recommend it.
If you’re running the crypto bot from a VPS and want more security layers, ensure you enable SSL for your Gunbot GUI.
3. Create a Reliable Trading Plan
Once you’ve secured your account, you need a solid crypto trading plan to avoid any pitfalls.
It would be best to create a trading plan that outlines a trading strategy and a list of guidelines to follow to implement that strategy. Learn more about creating a crypto trading plan here.
The only problem with this advice is that newbie traders don’t really have any trading experience and therefore get lost when developing a trading plan.
Another problem with restrictive trading plans is that beginners are told to treat their goals like the gospel and not deviate from them. A restrictive trading method prevents traders from adapting their strategies and rules to improve performance, a critical step in every trader’s learning curve.
Essentially, a reliable trading plan is a financial protocol that helps you move from point A (current financial situation) to point B (your financial goals). The first step in a solid plan is, therefore, to keep your financial goals in mind.
Rather than creating rigid rules at the start of your trading career, it would be best if you viewed your business plan as a living, breathing set of guidelines, which you can change as you learn more.
Here are some questions you can ask when you’re setting up your guidelines:
- Markets: Which markets will you focus on? Be as specific as possible. What type of asset are you focusing on? Are you trading on Spot, Futures, Margin, or all?
- Timeframe: Will you be a day trader who focuses on trades that last a few minutes or a swing trader who holds transactions for a few days?
- When to trade: At what time of day will you be trading? You may have external responsibilities that prevent you from functioning for an entire trading day. Pick the times of the day that best suit your lifestyle.
- Risk Management Rules: This is an essential and often overlooked part of your trading plan. How will you manage your risk, both per trade and overall? How much leverage
- Stopping Losses: You should have a “stop trading” point, a fixed dollar amount that will force you to stop trading if you are in your feelings.
- Mentor: Who do you follow, and from whom do you learn as a teacher? Learning to trade on your own is boring; you should always network and get wisdom from other traders.
You can repeat the mistakes of other professionals and eventually hope to learn the lessons and techniques they have learned, or you can learn from successful traders and avoid those initial frustrations.
Here my recommendation will be to shop for a crypto bot license and join the Gunbot community, so you can interact with other experienced traders and benefit from the Gunbot systematic trading system.
4. Use Stop-limit Orders Effectively
Stop orders allow you as a trader to limit both the price you buy an asset and the price you sell. One way to avoid buying a coin at a much larger price is to use a stop-limit order.
A stop-limit order removes assets that a person owns if their value begins to fall. Many people who are new to trading may not realize that they can also set a stop-limit order.
Using this more flexible restriction allows a trade to be made when the crypto market suddenly changes.
A buyer who places a maximum price in an offer has made a stop. Let’s say BTC was selling for $50.000, and the buyer could indicate a maximum bid of $51.000. You would buy the BTC if the cost did not exceed $51000 before the offer could hit the floor.
This plan can prevent you from risking more than what you want or have budgeted.
However, it can also mean you’re missing out on a profitable opportunity. In some cases, the value of the trade increases rapidly due to important news. Those who place definitive limits on their offers may be excluded from most of the benefits of a transaction.
You can control your trades while retaining the ability to get fast-moving coins. This type of trade protects you from purchasing assets much higher than the original offer. At the same time, it offers a range in which you can make the purchase.
A stop-limit order allows you to trade within a flexible budget framework, protect yourself, and at the same time profit from market dynamics. Whether you are a newbie or a seasoned trader, you should use this tool in your trading strategy.
You can use stop-limit orders in your Gunbot systematic trading system. You can find the stop-limit feature in the GUI on the miscellaneous section of the strategies. The default setting is 9999 (disabled), so you will have to input your desired value.
The number you’ll add in the stop-limit parameter will be a percentage at which you want to sell (below break-even) at a loss.
5. Pay no attention to FOMO
FOMO means fear of missing out and is the leading cause of stress amongst traders. The worst fear for traders who suffer from Fomo is the phrase, “Dude, we Have Fun Making Money, and You’re Not!” 🙂
If you’ve ever felt the fear of missing out on crypto, you need to know that you’re not alone. FOMO is a genuine issue in the crypto community, and it can lead to terrible mistakes.
The “fear of missing out” mentality can be seen with people who invest in ICO scams, sell crypto too early when it dips, and buy tokens that never go anywhere.
You may be affected by FOMO whenever you want to go to sleep, and the market is bullish, or get news to sell when the market is bearish.
FOMO is like a disease often filled with anxiety and restlessness due to the absence of a specific event — for someone who has missed out on several incredible trading stories.
It’s vital for you as a trader to do your homework. Do your research on a particular asset before investing. Many coins are leveraging naive traders, feasting on their emotions and their fear of missing out.
It’s your responsibility as a trader to research before trading an asset.
Note: Be careful of who you listen to. The advice you hear might not always be trustworthy. Influencers and publishers might even purposely cause FOMO to support their agenda.
Hold on to the basics and read the charts. If your coins look worthy and the fundamentals are present, stick to your strategy and keep your emotions in check.
Do you know what we say to FOMO? Keep Calm and Gunbot 🙂
6. Avoid the Revenge Trade.
One thing to avoid is trying to get revenge in the crypto market. Crypto trading is exciting. Therefore, the thrill of catching a big hit and racking up coins is a never-ending quest for many.
Searching the newsletters daily for signs of a new trend and the potential to win big is compelling for beginners and veterans alike. The potential, ease of use, and relatively low entry barriers make cryptocurrencies attractive to many people.
As a trader, you should control the overwhelming emotional response to the loss of one or more trades which results in the desire to immediately (and unconditionally) recoup any losses you have suffered.
This emotion often occurs after suffering one or more losses while trading crypto, especially futures.
This phenomenon is not openly discussed, and getting around this behavior is not easily accessible to new traders. It can even happen when you’re working diligently to control losses strictly.
Maybe you have been a bit compulsive or even unlucky and end up with a considerable loss.
This loss often gets into your emotions, and the need to end the day by earning at least some money would be so huge that you will do anything to get it, even by taking massive and unwarranted risks and engaging in aimless trades.
It is imperative to avoid this type of “get even” behavior because you will lose your account quickly. You should always stick to your daily trading plan and live with it.
Forget about revenge. Keep trading emotionless with your Gunbot systematic trading technique!
7. Diversify Your Portfolio
When trading, it is common to diversify your portfolio to minimize risk. It’s almost impossible to predict how the market will perform, and each asset class (like spot, futures, and margins) has its features.
By diversifying your trades, you can take advantage of “highs” and limit “lows.” Diversifying a portfolio means investing in different asset classes and investing in multiple securities within each asset class.
The basis of diversification is that even if one or two of your investments go wrong, you will have many more that will reassure you and prevent you from losing everything.
Diversification not only protects your funds but also smoothes out your rewards.
A portfolio with a single asset is likely to have highly fluctuating returns, while a portfolio containing various other coins will have more reliable and less volatile returns.
However, diversification only reduces but doesn’t eliminate risk. Most of the time, these coins follow the trend of Bitcoin, so you should diversify your altcoins by holding stable coins as these assets typically operate at regular market prices.
Allocate your assets, calculate an estimated risk factor for each investment or potential loss, then integrate the expected reward or gain. Also, assign them based on a safe risk/reward ratio, which is vital for success in any investment.
Another way to diversify your portfolio is by trading on other exchanges. Did you know you can trade on eight different exchanges simultaneously with the Gunbot Ultimate Edition?
8. Understanding Crypto Leverage
Leverage is the actual position size ratio to the amount of money you have to deposit (or reserve) to control the position (margin).
For example, if your position size is $50,000 and the margin is $500, your leverage is 1:50, which means that to “trade” with $50,000, you must reserve only $500 for the margin.
If the leverage is 1:100, you will be able to control $50,000 with only $250 and so on.
Some trading platforms offer an advantage of up to 100x. But be careful; leveraging your trades can be dangerous for you.
So regardless of your trading platform, you should be very careful with your risk management and don’t overexploit leverage. Because, as the example above shows, the temptation to use a high advantage can be deadly.
One thing you shouldn’t forget about leverage is this: Leveraging can increase your potential profits and possible losses. Keep that in mind.
9. Using Crypto Trading Technology to Your Advantage
As a trader, you can safely assume that the person trading against you is taking full advantage of what technology has to offer, and he’s there to take your money. Do you want to be at a disadvantage?
The best cryptocurrency robots today are becoming an increasingly popular method for trading the crypto markets. Using crypto trading bots is a great way to break into the trading niche by leveraging technology.
An automated cryptocurrency trading algorithm makes trades for you based on the settings you have input. Most crypto bots come with predetermined parameters or strategies which are, for the most part, customizable.
So, you can tweak these trading methods to your style to make profitable trading decisions.
If you want to make money in the cryptocurrency market, it is undoubtedly worth considering automated crypto trading. With so many people enjoying the benefits of these systems, they have certainly proven themselves to be a sound investment.
By opting for a crypto robot, you can allow the bot to trade exclusively for you and trading alongside it to maximize your potential. Using a robot in this fashion means you have a “staff member” working for you.
With the Gunbot systematic trading method, it’s pretty feasible to build up a team of robots to trade on your behalf. Allowing you more free time as you focus simply on managing your accounts instead of developing your manual trading systems, which can take weeks at a time.
You can also take advantage of platforms like Tradingview, where its trading charts can tell you a lot of information about the markets. With endless views and analysis options, you can try out different strategies without paying for them.
Using tools like “backtesting” can help you avoid costly mistakes by using historical data to test real-life scenarios before putting your hard-earned money on the line. That’s another way to trade crypto effectively!
Last but not least, you can take advantage of portfolio management apps like FTX Blockfolio to check your investments across hundreds of exchanges. Learn more about Cryptocurrency portfolio trackers here.
10. Develop a Long-term Trading Perspective
When we start a big undertaking, we want to be successful. The first few moments of a significant life turning point can be critical.
Well, what if you failed immediately? When trading, it’s essential to stay on task even when you fail at first. The initial disappointment can haunt you if you allow it to.
We all want to be successful right away. Hey, sometimes we are. But when we’re not, it can be discouraging. It might even shake our confidence and interrupt our positive thoughts. Despite this, we must keep the proper perspective when approaching trading.
It’s easy to focus on the loss of a single trade. But you should also keep in mind that trades are just one part of the bigger picture.
Understanding the outcome of a series of trades is more critical than focusing on any individual trade.
Don’t get me wrong, paying attention to the amount of risk you take on each trade is key to your financial and mental health. For example, if you have your whole salary riding on a single trade, it’s not worth fooling yourself into thinking that trade is insignificant.
Therefore, limiting your risk on any single trade is crucial to your financial well-being.
The bottom line is that you shouldn’t put your hopes on a few trades. If anybody feeds you with a “get, rich quick trading” dream is time for you to wake up. Thinking you can quickly make a few trades and get set for life is not valid.
Once you come to terms with the fact that losses are inevitable, you will begin to take fewer emotional risks with your trades, and you will experience a positive outcome in your trading performance.
As a responsible trader, your focus is to be in the game of trading crypto effectively for the long haul.
Gunbot Systematic Trading
Trading is always a balancing act. Some trades are planned out in advance, while others are spontaneous. But the most successful traders are the ones that have a plan and use the right tools, including both full or partial automation, to gain an edge in the market.
The point of taking advantage of the Gunbot systematic trading model is to create and use a set of strategies that can cut any human emotions out of your trading decisions.
Systematic traders are essentially users like you trading the crypto market through an algorithmic trading program like Gunbot.
How can systematic trading help you?
Automating your trades is a great way to make decisions in a fast, easy, and measurable way. As a manual trader, you also have the option of trading systematically, but you only have so many hours in the day.
Gunbot systematic trading includes defining trade goals, risk controls, and rules. Systematic trading may have manually traded these systems, but most people automate their trades to make decisions with minimal human input.
Have you ever wanted to make your trading decisions systematically? This mechanical investing system is the best way of defining the rules that can execute your trading decisions in a very organized manner.
Here’s a fun fact: Most crypto traders are not traders at all. You see, most people use systematic trading to make investment and trading decisions in an organized manner.
What does this mean? It means that you can define your entry, exit, and risk management rules in your bot trading strategy. By automating and predefining your decisions, you can sit back, relax and let the bot execute your commands.
As a rule, you will be using technical indicators to detect market trends immediately and then take positions in those markets, trying to profit as those trends develop.
What’s the first rule of trading? Understanding the importance of each of them and how they work together, so only traders who have the patience and discipline to keep these rules in mind can increase their odds of success in such a competitive arena.
The Gunbot systematic trading system gives you a fantastic opportunity to make money, but you must stick to the rules. Following these trading principles will help you establish a viable trading business.
The main logic in automated trading is to trust the system. Any change on the predefined set of variables can create risk, and following the same set of variables over and over is proven to be a safer bet.
When you create a strategy, there are certain expectations for it. It should be clear in your mind what it will do and how it will react to different scenarios.
So there’s no need for you to worry about the trades themselves because you know they will be executed when the opportunities appear in the market.
Look at it this way. When your chosen pair meets A, B, and C criteria, Gunbot will (buy) open a position. It’s as simple as that. And, because your system includes an exit strategy, the crypto bot will have X, Y, and Z parameters in place to protect your risk.
Gunbot Systematic Trading Advantages and Disadvantages
Gunbot Systematic Trading Pros:
- Virtually Emotionless: The trade risk gets significantly reduced when you have a set list of rules to follow. Gunbot systematic traders can drastically reduce the possibility to second-guess themselves during the process. You shouldn’t be affected by FOMO or FUD like a manual trader could.
- Consistency and Reliability: Your system-based trades rely on technical variables, so they’re repeatable, which will give you regularity and the ability to execute the same pattern trade as many times as it appears on the market. And since you’re using automated software, you know the bot will quickly identify and capitalize on opportunities.
- Considerably Safe: While there’s no sure thing in crypto trading, the Gunbot systematic trading approach can be considered “safe.” Because its regular spot trading strategies are thoroughly analyzed before they’re deployed, the trading bot won’t sell at a loss with its default settings. Trading with Gunbot is somewhat safer.
Gunbot Systematic Trading Cons:
- Low Flexibility: There will always be a pattern that isn’t perfect, and the cryptocurrency market can be illogical. The most significant disadvantage of following a strict system is that it can not account for all circumstances. In contrast, with discretionary trading, investors can exit their position early if there is a disruption in the market. But in systematic trading, there is no room for instincts.
- Complexity: You can create a very complicated Gunbot systematic trading strategy that relies on a long list of variables and confirming indicators. While this is not the bot’s fault in itself, still, it gives you the option. Therefore, you should know that a solid trading system includes a mix of firm enough parameters to manage the risks successfully but loose enough to spot opportunities.
In the end, the Gunbot systematic trading method successfully works when you set your strategy with the correct variables and conditions. With that been said, you must remember that no plan is guaranteed to work in all market conditions.
The most important thing to remember about the Gunbot systematic trading is that it requires trust, and you need to use it responsibly. You need to have confidence in your bot and identify market opportunities for what they are.
Success comes to those who seek and act consistently.
Keep in mind that most people ready to engage in crypto trading do not have any prior training but are prepared to learn and excel in the asset they have decided to trade.
The above tips can help you trade crypto effectively if you’re committed and stay true to your plan. You need to continually develop and familiarize yourself with the pros and cons of crypto trading.
Learning to discipline yourself through win-lose dilemmas will help you improve your skills and become more analytical in due course.
Trading is a big responsibility. It can be a tough job, and it’s easy to rely too much on your emotions if you’re not careful. When you feel fear or greed, always have a trading plan that you’ll hold on to no matter how emotional you feel about the situation.
When trading, don’t get too caught up in the “winning kick” of one trade. Be sure to focus on the big picture of your gameplay. A winning deal is not a bad thing; it’s just another step in the path of building a profitable crypto trading business.
Remember: Ultimately, it’s the accumulated profits that will make all the difference.
If you’re ever in a situation where it becomes hard for you to reduce your daily trading, you’re feeling stressed or having negative thoughts because the market keeps moving against you. Stop trading altogether, take a break, and understand that your ability to trade responsibly has been compromised.
Continued education on every aspect of crypto trading will help you take advantage of unique, high probability opportunities in the crypto market. Keep practicing and building confidence in your methods; success will follow naturally.
Don’t forget to do your research, and that CryptoDROI is here to help. Purchase your Gunbot license today for instant access to the state-of-the-art Gunbot systematic trading system.