Cryptoblizz trading strategies explained

Cryptoblizz trading strategies explained

About cryptoblizz trading strategies

Cryptoblizz comes with multiple, configurable trading strategies. The great thing about Cryptoblizz is that you can easily configure your custom trading strategy, using triggers and settings. You can customize an algorithm completely and create your own trading strategy with this. If you know how to code you can even write your own algorithm in code.

Basic principle

In basic, how Cryptoblizz works, is that it will place buy and/or sell orders at a variable pricepoint with an optional order spread. Whenever the order completes, a counter order is being created. This is a reliable and profitable mechanism that works on any market with the right configuration. You configure how the bot places the orders, how often the bot runs and what buy and sell offsets will be used for trading.

Triggers & safeties

Triggers consist of a configurable set of conditions. Whenever a set of conditions meets the actual market conditions, you can execute an action. Using triggers you can identify crashes, sudden price increases, detect certain trends, monitor your bot’s profit, execute a stop-loss trigger, and much more. Example actions that can be executed when a trigger meets your conditions are:

  • Send notifications (e-mail, Telegram) to yourself
  • Execute a stop-loss action (sell all the trader’s balance to USD or BTC for example)
  • Execute a take-profit action
  • Cancel all open orders
  • Update your trading midpoint and create new orders based on a new midpoint
  • And much more…

Read more about triggers & example triggers

Example strategies & configurations

Check out our videos to see a profitable trading strategy in action, and learn how to create a trading strategy!

Strategy example for uptrend markets

This is an example bot configuration which works best on uptrend markets (markets that incline in value over time).

Bot configuration

  • Trade ETH/USDT on Bittrex
  • Run every: 60 seconds
  • Algorithm: scalper uptrend/downtrend
  • Offset reference point: 800 USDT per ETH
  • Start with: 1 ETH
  • Buy at: 1% offset
  • Sell at: 2% offset
  • Spread orders: 0.5%
  • Maximum ETH per order: 0.25 ETH

Initial orderbook

  • [SELL] 0.25 ETH at 816 USDT per ETH. Estimated receive: 204 USDT
  • [SELL] 0.25 ETH at 820.08 USDT per ETH. Estimated receive: 205.02 USDT
  • [SELL] 0.25 ETH at 824.1804 USDT per ETH. Estimated receive: 206.0451 USDT
  • [SELL] 0.25 ETH at 828.301302 USDT per ETH. Estimated receive: 207.075326 USDT

As you can see it only sells 0.25 ETH at a time. It will start selling the first 0.25 ETH when the price is 2% above our offset reference point (800 USDT/ETH). Every remaining 0.25 ETH will be sold when the price increases 0.5% more. It will not sell more than 1 ETH in total. This is all because of how we configured the bot.

Ongoing trading process

As soon as an order completes, Cryptoblizz will create a counter order. In this example, when we have sold 0.25 ETH we will receive 204 USDT because of this sale. We can now spend 204 USDT to buy ETH again, at a lower price. Since we configured a buy offset of 1%, we will buy for 204 USDT worth of ETH when the price drops 1% below 816 USD (which is the rate of the sell). This way you are trading 24/7 without manual intervention.

Since this example is using the algorithm ‘scalper uptrend / downtrend’ and you have configured a sell offset of 2% and a buy offset of 1%, this means this bot will work best on uptrend markets. For every sell, it places a buy order 1% below the sell. But for every buy, it places a sell order 2% above the buy. So the rate of your orders will be higher for every completed order.

Trading example in graph

You can see in the example below how every sell order (green markers) is followed by a counter order (buy, red marker). You can see it keeps trading, and increases the order prices as the market inclines in value, like we configured it to do.

Backtest example uptrend strategy

Strategy example for horizontal markets

This is an example bot configuration which works best on markets that are pretty steady in price and don’t experience too many flash crashes or extreme increases in price. It is not bad if the price of the pair goes up & down, as long as it is no straight line upwards or downwards for a long period of time.

Bot configuration

  • Trade ETH/BTC on Bittrex
  • Run every: 60 seconds
  • Algorithm: scalper midpoint
  • Offset reference point: 0.07455 BTC per ETH
  • Start with: 0.5 BTC
  • Buy at: 0.6% offset
  • Sell at: 0.6% offset
  • Spread orders: 0.2%
  • Maximum ETH per order: 1.5 ETH

Initial orderbook

  • [BUY] 1.5 ETH for 0.074103 BTC per ETH. Estimated cost: 0.111154 BTC
  • [BUY] 1.5 ETH for 0.073954 BTC per ETH. Estimated cost: 0.110932 BTC
  • [BUY] 1.5 ETH for 0.073807 BTC per ETH. Estimated cost: 0.11071 BTC
  • [BUY] 1.5 ETH for 0.073659 BTC per ETH. Estimated cost: 0.110488 BTC
  • [BUY] 0.771524 ETH for 0.073512 BTC per ETH. Estimated cost: 0.056716 BTC

As you can see it only sells 1.5 ETH at a time. It will buy the first ETH when the price is 0.6% below our offset reference point (0.07455 BTC/ETH). Every remaining 1.5 ETH will be sold when the price increases 0.2% more. Initially it will not spend more than 0.5 BTC in total. This is all because of how we configured the bot.

Ongoing trading process

As soon as an order completes, Cryptoblizz will create a counter order. In this example, when we have bought 1.5 ETH this will cost us 0.111154 BTC and we receive 1.5 ETH. We can now sell this 1.5 ETH as the price increases. Since we configured a sell offset of 0.6%, Cryptoblizz will sell 1.5 ETH when the price of BTC/ETH has increased 0.6%.

Since this example is using the algorithm ‘scalper midpoint’, it means the bot will work best on horizontal markets with ups & downs. What often happens is a market, for example BTC/ETH stays at a certain price for a couple of weeks. Then stuff happens and the price gets a boost or crash. Then it is steady again. You can easily automate your trader to adopt to certain situations using triggers.

Trading example in graph

Red markers are buy orders, green markers are sell orders.

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