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Re: Butter Bot!: New Bitstamp, BTC-E, and MtGox EMA Trading Platform
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PuertoLibre
on 12/10/2013, 21:03:21 UTC
Quote from: fible1 on October 12, 2013, 06:19:25 PM
Quote from: bruter on October 12, 2013, 04:56:14 PM
@ Pablo

Would you give us an example of "Trailing Stop Loss" feature use.

Thanks

Hi Bruter Smiley,
   The most simple way to use TSL would be with a very high value (in the high teens to mid twenties) to get out of a flash crash; again this carries a lot of risk because since the bot will shut off you could be out of luck if the price recovers before you have a chance to reset it.

TSL can be used as a stop loss feature directly with lower values if you set very high threshold values (that aren't likely to be crossed).

Again, it's a feature who's use we as a company do not advocate (as expressed in the user manual); there are models where it useful but you would have to be monitoring the bot constantly which defeats the purpose of having a bot.

I hope that answers your question, please let me know if you need anything at all Smiley.

Pablo.
Ah, I was automating your recent version of your bot and that is why I noticed that it didn't apply TSL. I am actually making a watchdog app that keeps an eye on the bot. (which means I can try out different TSL's on a minute/hourly/daily basis without being there by following some simple rules.)

I noticed quite a few times across a broad spectrum of settings that even good EMA settings turn out pretty bad in the back testing when there is a "flash crash".

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These are my thoughts:

I realize this is an EMA bot. Simple rules, simple executions. As you can see in my pic above.....

IF you use 1 hour settings (and above) AND there is a flash crash within 30 minutes... (meaning, it goes from where it was to the new bottom (lets say a 25% drop in price)...the bot reacts to it after the next update by initiating a sell order. Correct?

As you can see above, it reacts very suddenly after the fact by selling at a major loss. (lets say 25% loss)

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I assume from what you said that the TSL feature "turns off" the bots trading ability before it executes the "sell off" and thereby incurring the loss, correct?

If so I can see why the anonymous customers asked for this feature.

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Why doesn't the bot check the 1 minute interval data and use that as the TSL trigger rather than whatever settings you choose? (lets say in this case "1 hour" ticks)

I guess what I am asking is there a way to differentiate the "TSL tick" settings apart from the "trading tick" settings?

Edit: Nevermind, it is a dumb idea!