Should I Build Bots for Bitcoin Market | Crypto Craft

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Should I Build Bots for Bitcoin Market

  • #1
  • First Post: Edited 10:21am Nov 10, 2017 10:07am | Edited 10:21am
Hello,

Recently a friend introduced me to cryptocurrency market, specifically Bitcoin (BTCUSD) day trading. I currently develop strategies and back test strategies with NinjaTrader for crude oil and other CME Exchange futures.

I gave up manually trading a year ago.

The price swings in BTCUSD are very intriguing as us traders love a moving market to make money.

So I started reviewing the chart and looking into using MT4 to program a few strategies to back test for the BTCUSD market only.

Questions or Your opinion

1. I do not believe its good idea to program strategy for Bitcoin market cause not alot historical data. Look the chart. There is only about 8 months of good data and its all been in a up trend. My idea was to build an intra-day strategy.
What do you think on this please?

3. Also, not good idea to program strategy because of the high spread/slippage. I take trade manually and already down 25 pts.

2. I plan to build intra-day strategy. Does MT4 have intrabar granularity back testing simulation?

Thank you for help and advice.
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  • #2
  • Edited 9:42pm Nov 15, 2017 9:27pm | Edited 9:42pm
Quoting goodoboy
Hello, Recently a friend introduced me to cryptocurrency market, specifically Bitcoin (BTCUSD) day trading. I currently develop strategies and back test strategies with NinjaTrader for crude oil and other CME Exchange futures. I gave up manually trading a year ago. The price swings in BTCUSD are very intriguing as us traders love a moving market to make money. So I started reviewing the chart and looking into using MT4 to program a few strategies to back test for the BTCUSD market only. Questions or Your opinion
1. I do not believe its good idea...
7 years of of historical data is not that few. Why do you suppose that data before Feb-2017 is bad? Any rationale, please.
Quote
My idea was to build an intra-day strategy. What do you think on this please?
What timeframe do you mean by intraday?

3. Also, not good idea to program strategy because of the high spread/slippage. I take trade manually and already down 25 pts.
[/quote]
Forex brokerages have arbitrary spread. Spread on Bitcoin exchanges is usually much lower. And we do not know what spread for CME futures will be.
Quote
2. I plan to build intra-day strategy. Does MT4 have intrabar granularity back testing simulation? Thank you for help and advice.
Why are you asking this question here instead of reading MT4 manual? I hope that you realize that backtesting serves only debugging purposes and has nothing to do with the profitability.

Assuming all above, my answer to your question will be No.

P. S. During last two years very simple strategy by on daily dips and hold (or close at your leisure) was pretty profitable.
  • #3
  • Last Post: Nov 16, 2017 10:13am Nov 16, 2017 10:13am
Thank you yg10 for your response.

Good questions and I will answer. Look forward to your response.

Quote
7 years of of historical data is not that few. Why do you suppose that data before Feb-2017 is bad? Any rationale, please.

You are correct, I was only looking at prices this year and was ignoring prices the past 7 years. No excuse for this. 7 years of data is good 7 years of date to be tested.

Quote
What timeframe do you mean by intraday?

I was looking to test strategies on the 1 hr, 30 min, and 15 min. Intraday (and night). Trying to catch good swing trades and trail a winner. Anything simple

Quote
Forex brokerages have arbitrary spread. Spread on Bitcoin exchanges is usually much lower. And we do not know what spread for CME futures will be.

You are correct again. Spread has nothing to do with developing a bot to trade.

Quote
Why are you asking this question here instead of reading MT4 manual? I hope that you realize that backtesting serves only debugging purposes and has nothing to do with the profitability.

You are correct, the MT4 clearly explained to me the different backtesting functionality and how to use them.

I am a bit confused with "has nothing to do with the profitability" Can you please explain a bit please? Are we not programming a bot to back test for profitability? Is that not the goal?

Thanks,
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