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[Beginner] High/Low Strategy

Share your Haasbot Trading Strategies and Configurations
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CoinsLikeLuigi
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Re: [Beginner] High/Low Strategy

Postby CoinsLikeLuigi » Mon Jul 27, 2015 11:33 pm

Today was my first time using Haasbot and I decided to implement this High / Low strategy although I was really surprised by a few couple things. I originally created 10 bots with each programmed to trade 0.10 BTC but have since downsized due to some trading surprises / complications (read below).

All bots were programmed as follows:
Safety:
Dynamic Drop-Loss (A 99%, t 1min)

Indicators
High / Low (autotuned)

Insurance
Overcome Fee Costs

To my knowledge, I thought that each of the 10 bots would only trade with the 0.10 BTC that I programed them to, however, they continued to buy BTC in 0.10 amounts instead of sticking to the fixed price of 0.10 BTC. The bots continued to buy until I was completely, all in invested, which was not my intention. I am wondering if it is normal for the bots to do this or is there another way to program them so that they are only trading on a specificly identified amount of BTC or USD?
Luckily the markeet went up later today and I was able to recover my investment.

Second, I am wondering if my safety and insurance on this bot build are needed for this type of strategy? If not, which safeties and insurances would make this strategy safer or less likely to lose money? Would it be better to go with an order bot instead? Also, is there a way to program the bot to stop all trading if the price goes below the high / low indicator? (maybe this would be an order bot or use dynamic high / low instead?)

Looking forward to input!

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stephan
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Re: [Beginner] High/Low Strategy

Postby stephan » Tue Jul 28, 2015 7:22 am

I have studied this story and i am very sorry but i am not able the explain what has happened. Based on the events i say the trading indicator must have triggered the buy signals. But this does not match up with the ongoing buy signals. Thats is just plain unacceptable to be happening.

I would like to investigate this problem. because this kind of things may never happen.

Can you please tell me which exchange and pair this has happenend? This would allow us to have a deep look and to reproduce the entire situation to make it go wrong for us too.

Your strategy and approuch itself is good, i have no comments on it. Only the FeeOvercome is not needed because the High/Low is using fixed prices and you could have added an roof-in too. But these are just minor things.
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CoinsLikeLuigi
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Re: [Beginner] High/Low Strategy

Postby CoinsLikeLuigi » Tue Jul 28, 2015 5:58 pm

Yeah it was very troubling. I use Coinbase Excahnge and BTC / USD.

I named the original trade bot H294.57 / L289.34 as those were my autotuned high and low. I then duplicated the bot 9 times to have a total of 10 bots each trading 0.10 BTC. I set the interval to 1 minute. All the other factors of the bot don't have a time sensitive setting so in hindsight I think the interval might have been the issue here.

If the interval time is the issue, what would be the best time to select instead? 5min, 10min, or 15min? let me know what you think?

Also, with this set up and having the dynamic drop loss safety, will the bot deactivate or stop trading if the market price drops below the autotuned high and low indicator?

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stephan
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Re: [Beginner] High/Low Strategy

Postby stephan » Fri Jul 31, 2015 8:18 am

The auto-tune went well. If you see an higher sell price and lower buy price and this means the auto tune has found an setting which seems to be alright. The copy event on the otherhand is not a best thing to do. I do understand why, but its best if you make a copy to give each bot just a little bit different settings. Like you can adjust the buy and sell price just an little bit and then you get 10 different bots. This is the spread principle and it works very well because the more (trade) options you give the more (trade) options will be hit.

It is hard to give off an recommended time, personally if i use the high/low then i do not adjust the update timer, i leave it at the 1minute updates. This means i will have the risk of buying and selling to soon, i might miss an better price because of the 1minute updates. I could set it to 2 minutes or higher then then the risk exists i might miss an momentum to buy or sell. After all within the 2 minutes the set prices might have been reached and i will be to late to respond at 2 minutes or higher. So the only real recommandation is to keep the update timer just low, this ensures trades and trades means profits. Thats the aim, so 1 minute will do perfectly fine.

Small note: please understand the high/low is an real starting indicator. It works and its predictable, therefore we recommended it as one of the first ones to try. But the truth is, this is also one of the worst strategies to setup. Because you blindly assume the prices are stable and you blindly assume the price keeps evolving between an high and low. Therefore if you are happy with the high/low i would recommand to switch over to an relative type of trading indicator as soon as possible. It just provides much more and better momentum.

For a bot we have setup an specific model, we got the trading indicator which can signal an buy or sell and we got the insurances who have to agree with the buy or sell. This is the normal trading side of a trade-bot, but we also have the so called safeties like the drop-loss. Safeties have an overruling signal, they exists to ensure safety. So if an safety signals an buy or sell then it will bypass the trading indicator and it will bypass the insurance and it will enforce it signal. This means if an drop-loss wants to sell then the bot will sell, no matter what the indicators tell the bot must do. So in essence it indeed shuts down the entire trading logics and it put the bot into a forced position.

(We got an nice picture of the model of n trade-bot on this page, its the 3th image: https://wiki.haasonline.com/Trade_Bot)

Safeties like the drop-loss are very good to use, they really protect you in case the price gets trending. (think also about the Roof-in!) There is only one known downside where is might go wrong. In case the price evolution (up and down trend) get around the drop-loss then you might see sells and buys that you do not want. After all, if the price goes up again then the safety will stop signaling and the normal trade procedures will take over again. So in that event you might see an buy first then a sell because of the safety and then directly an buy again because of the price restore. This is something which can not be avoided, or at least not fully avoided. But it also happens rarely so do not think about this to much. And the best way to prevent it is using an dynamic drop-loss because of the price adjustment. This adjustment will compenstate for it for as far as its possible.

To get some extra brain juices flowing think about this....
- You do not have to create a lot of bots with the safeties added, one bot with safeties will do fine because it more or less can just hijack the coins from the other bots, rendering them into disabled/error mode. (which is fine because safety always goes first)
- One safety is good, but 2 safeties are better just cover for more strange event at the price.

i wil set the team on tracking the issues you reported at coinbase. Hopefully we can track it down and solve it asap.
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loganhasson
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Re: [Beginner] High/Low Strategy

Postby loganhasson » Wed Apr 27, 2016 4:54 am

Did the High/Low indicator get taken out of 3.0? In build 24, I can't seem to find it.


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