TradeSanta Bot Tutorial: How to Automate Your Trading?
With the ongoing cryptocurrency adoption, the trading landscape is also changing. More and more traders are delegating the trading process to automated tools. In this article, we’ll guide you through the process of automating your trading from scratch with TradeSanta.
TradeSanta is a service that allows traders with any experience level to set up a trading bot that will monitor the market and execute trades 24/7. TradeSanta wizard will guide you through the whole process of setting up an account. Let’s dive right in!
How do I connect the exchange?
The very first thing you have to do is tell the bot what exchange it should be trading at. TradeSanta supports all major exchanges: Binance, Huobi, Okex, Upbit and HitBTC. If you don’t have an account on any of these exchanges, don’t worry – TradeSanta got your back! You can create an account on HitBTC right within the TradeSanta interface in 1 click.
If you want to connect an existing account all you have to do is generate API keys on your exchange and create an access point on TradeSanta.
How To Create API Keys
Once that is done, we can proceed to the next step: creating your first bot.
Grid vs DCA
TradeSanta offers two strategies: Grid and DCA. The underlying principle for both bots is just the same: once the price goes in the opposite direction, the bot will place an extra order to create more opportunities for profit by averaging the price. The main difference is in the Take Profit order – the order that sells or buys back the currency and brings profit.
In the case of the Grid bot, the Take Profit Order is placed separately for each extra order placed. The DCA bot, on the contrary, places just one order for the whole volume at the average price. Both strategies are widely used by traders, choose the one that you think fits best your trading style
Long vs Short
Once the strategy is chosen, it’s time to make probably the most important decision in trading: the pair to trade and bot direction. Choosing a trading pair is an important topic and we recommend you conduct your own research and set up a strategy on how to choose which currencies to trade.
Each bot is either trading long – buying the coin with quote currency and selling it later for a profit, or short – selling the coins for the quote currency and buying the same amount back later. Choosing long versus short is based on two main factors:
- The currency is available on your balance. In case of a long strategy, you need to have quote currency available on your balance, and the base currency is required for a short strategy. For example, to trade a long BTC-USDT pair you will need USDT on your balance and too short BTC-USDT you will need some amount of BTC on a trading account.
- The expected trend. Let’s look again into the BTC-USDT trading pair as an example. If the BTC price is expected to increase, it wouldn’t make sense to short BTC with the BTC-USDT short bot. The bot will sell BTC, but it won’t be able to buy back the same amount if the BTC price goes up.
No matter which strategy you choose, you will always receive profit in the quote currency – the second currency of the pair.
Long And Short Strategies explained:
Once you’ve chosen the strategy and a trading pair, you may proceed by fine-tuning the bot parameters such as a profit percentage you want to make on each order placed, the volume of each order, and the number of extra orders that will be placed if the price goes into an unexpected direction.
These settings would be different for volatile or stable markets and will depend on the pairs you’re trading. If you decide to create a bot with unrealistic settings in the current market, the bot might take a while to close the deal for you.
Once you have filled in all the fields you may launch your first bot!
To explore TradeSanta you may check out the TradeSanta youtube channel that will help you to get started with automated trading. Sign up and create your first bot with TradeSanta.
To fully understand how the platform works, what special features are important, and which trading bots are offered read more in this detailed review of TradeSanta on Tradingbrowser.com“