Cryptocurrency – Algorithmic Trading

This is the name of our new course and it this article we will share some more of our experience in algorithmic trading with the cryptocurrency.

The cryptocurrency became popular after the boom in the last two years and this is the problem.

Only few people benefited from this boom by keeping the cheap bitcoin for years. The question now is how we can trade it after its already expensive.

The solution is algorithmic trading because already many brokers are providing the most popular cryptocurrencies like the bitcoin, Ethereum, and Ripple. Now it’s time to collect enough history data so you can create robust strategies.

What does this mean?

  • It is essentially important to collect history bars from the broker we use in order to create trading strategies. This is possible if you open your meta trader platform and on each time frame press the Home Key on your keyboard. This will force the meta trader to load more bars.
  • Normally when you do that for the cryptocurrency it will load you not more than 100 000 bars on M1 which is not really enough for creating robust strategies. That’s why you need to leave your meta trade opened on your trading machine for couple of weeks or months.
  • We do that because believe it or not each broker provides so different prices for bitcoin ethereum and ripple each day which makes the process of trading with EAs that you buy nearly impossible. The traders buy EAs and what they see is some or none profits for some time and after that they start to lose. And this is not because the EA is not profitable, it is because you trade with it on a different broker from the one it was created on.
  • The second step after you collect your history data is to create 100s of strategies. Yes, 100s! This is possible by using a professional strategy builder for cryptocurrency algorithmic trading as EA Studio and FSB Pro. They have the so called Generator and Reactor – powerful tools that create us strategies over the history data we collected with predefined rules and conditions. By one click you are able to export the strategy as an expert adviser and pay no money for developers.

By having 100s of cryptocurrency strategies we are able to test on a Demo account only the selected once and trade on a live account only the top performers. And that is the whole idea. You do not need to depend on only one Expert Adviser for bitcoin, ethereum or ripple but on many. This way we diversify the risk and any moment if a strategy starts to lose, we have many more behind that are making profit and we can replace it.

In the course you will learn the whole process – from the creation to the testing. We have selected the bitcoin, the ethereum and the ripple for couple of reasons. One is that we diversify the risk on 3 different cryptocurrency. Also, we are looking for the other cryptocurrency that is volatile, not only the Bitcoin.

The ethereum is the cryptocurrency in the middle – not so expensive, medium spread and nice volatility. The ripple is the one that is really cheep at the moment and with a small spread. So we have it all…

The course you can find it here: Cryptocurrency algorithmic trading – the revolution. We named it this way because we show in this course that a cryptocurrency is a perfect asset to trade by algorithmic trading, simply because it’s volatile.

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