Firstly it initialises and scans the entire Binance market for coins it considers good to trade. It checks for high volatility coins with a trading range of at least 1% variance over the last 24 hours. Out of these it checks that the coin has traded for at least a month and has enough volume to meet the criteria required by the algorithm. This initialisation is performed once every 24 hours, to ensure that the list of assets being traded is up to date. A list of the coins is shown on the front screen and a tab is opened up for each coin showing trade details.
Also on the “Home” tab we can see the countdown to when the next run will occur (every one minute), a list of past trades, exchange balances for each coin and a profit chart, showing overall profits for the last year. There is also a profit tab, which breaks down the profit into each coin.
After initialisation, it checks the prices of the selected coins once every minute and calculates several indicators. This version is using the MACD and Percentage Price Oscillator (PPO) on different time frames to determine entry points. Although it doesnt use these indicators in a traditional manner – there is some secret sauce in here which looks at the values produced and makes smart entry decisions based on a number of factors.
The software I use runs the strategy described on the strategy page. It needs to be installed on a Windows environment and can run on your local machine (a laptop is sufficient) or you can rent some server space in the cloud to run it. I can help you with the setup of that if necessary.
Once installed all you do is connect it to your account on Binance and click the start button. The software only supports Binance at this time, I may consider other exchanges in future versions.
When running the software walks through several stages.
When it buys, it calculates how much money you have on the exchange and how much it should invest per trade, given the number of assets it is trading with. This is done so as to ensure the strategy can survive through a 50% market downturn and still be profitable. This is one of the built in safety features. Once an entry is made (i.e it has bought into an asset) a Dollar Cost Averaging module watches each and every trade and does two things.
If the price rises by 1%, it sells the asset and banks the profit. This is what we hope will happen as often as possible, however when the markets are on a downward cycle, often there is not enough profit to be made in a single trade, so in those cases, when the market falls by 1% it buys more of the same asset. This effectively lowers the price at which it needs to sell to make a profit on the trade and because it selects high volatility assets there is usually enough up and down movement to sell within a few days at a profit.
You can see this at work in the screenshot to the left. On line 89 we start a trade for UNIUSDT, it keeps buying all the way down to line 103 where it sells at a profit of $4.39, the trades were $20 each time, so it took a total capital of $280 in order to secure that profit.
Generally the system allocates $1000 per coin and trades $20 a time, so that the coin could drop by 50% and we would still have enough capital to keep trading. Since the coins that the system selects are high volatility, meaning that they rise and fall by greater than 1% each cycle and usually only fall a maximum of 20-30% this makes it likely that every trade will end in a profit.
The other aspect of this is that the system isn’t likely to invest more that a few hundred USD at any given point in time in any single asset, so if one asset did completely fail (fall to zero), then the total loss would only be a few hundred USD.
Of course if all the assets failed at the same time, then you could lose all the money that the system has invested, but that is pretty unlikely to happen!
If you would like to chat with me about this concept, then please do contact me through the contact page.
In summary to trade with this software you will need:
At least 1000 USD loaded into a Binance account
Binance keys to allow the software to connect to your account
A computer running a windows operating system to run it on (this can be cloud or local)