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Re: Butter Bot!: New Bitstamp, BTC-E, and MtGox EMA Trading Platform
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fible1
on 12/10/2013, 21:46:24 UTC
Quote from: PuertoLibre on October 12, 2013, 09:03:21 PM
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.

============================

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!

Hey Smiley,
  TSL actually liquidates all your BTC for USD and then shuts off so it's a bit different.

You can use it for panic settings but I think it's best to just let EMA protect you in case of a flash crash because it can be more reactive with the lower time frames and lower time frames are as effective as the higher one in low fee exchanges (as posted previously); I think that's the best solution Smiley.

Please let me know if you need anything Smiley.

Pablo.