In this article we will cover the basics of Cryptoblizz. You will learn how to add your first automated trader, how to optimize your trader using settings and triggers and how to connect to an exchange to start live trading.
1 – Connect to an exchange using API key & secret
For live trading and real-time balance information of your exchange accounts, you need to connect Cryptoblizz to your exchange account. For simulation and backtesting you do not need to do this.
- Login on the exchange that you want to connect with Cryptoblizz.
- Somewhere in your account or settings section you will find an option to generate an API key and secret.
- Generate a new API key. Make sure the key does not have withdrawal permissions (only trading and balance permissions is needed)
- Write down the key and secret because you need those details in Cryptoblizz.
- Now, in Cryptoblizz navigate to the menu item ‘Exchanges’ and click ‘Add an exchange’.
- Add your API key and secret in the popup. Entering those details is only required if you want to view your exchanges balances or if you want to start live trading. This is not required for simulation and backtesting.
- We recommend storing your API secret in the config.php file which you can find in your Cryptoblizz installation directory. The file will contain a placeholder for every supported exchange, where you can add your API secret. That way you don’t have to store your API secret in a database, which is generally less secure. Please note that you still have to add your API key in the Cryptoblizz dialog as shown above.
2- Create your first automated trader (video)
Now you have added your exchange you are ready to create your first automated trader with Cryptoblizz. We have created a video tutorial where you can see how a trader is created.
Trading pair: here you have to choose from one of the tradepairs supported by the exchange. The tradepairs are automatically retreived and updated. If you do not see any tradepair, please go to the menu item ‘Exchanges’, and click on ‘Actions’ > ‘Update tradepairs’ on the exchange you want to use.
Start trading with: this setting is very important, because what you choose here is the currency of which you have balance available on the exchange. For example, when trading on the ETH/BTC pair, if you choose ETH here, you need to have ETH on the exchange in your balance to be able to start live trading with ETH. For simulation and backtesting it is of course not nessecary to have the actual balance in your account on the exchange.
How much XYZ can trader initially use: this is also important. The amount you enter here has to be available in your account on the exchange. Of course this only applies when live trading (not for simulation or backtesting). A great unique feature of Cryptoblizz is the ability to keep track of each trader’s own balance information and profit/loss based on a starting balance, which is defined by this setting.
Run the bot every X seconds: this defines how often your bot should run it’s algorithm. Usually an interval of 60 seconds or 120 seconds works great. However, if you are trading with smaller offsets (see below) and want to trade on a higher interval, then you can also run the bot for example every 30 seconds. Please keep in mind that running the bot on a high interval (less than 1 minute) requires additional setup on your server, because CRONjobs can only handle 1 minute as the lowest possible interval.
Offset reference point: this setting defines the initial order placement price when using the ‘Scalper uptrend / downtrend’ algorithm. In case you are using the ‘Scalper midpoint’ algorithm, this setting is also used for all counter orders that are setup when an initial order completes.
Buy offset / sell offset: with the offset settings you configure the pricing of your orders. For example, if the current rate of ETH/USD is 1000 USD per ETH. If you start trading with ETH in your balance, then the first action of the trader would be to sell this ETH when the price increases. Then, the trader will buy more ETH when the price drops, and so on. So with the buy and sell offset, you define how much marge you want to use for placing buy and sell orders. In case of a price of 1000 USD per ETH, with a sell offset of 1% your trader will sell ETH when the price is 1000+1% (1010 USD). Usually a good place to start is 2 – 3 times the fee of an exchange. So if an exchange charges an average of 0,25% fee, an offset of 0,5% will make you 0,25% profit per completed order.
Order spread: order spread is a great feature and has proven to potentially increase profits drastically. What order spread does is instead of selling / buying all your balance at once, it spreads the buys and sell with a configured offset. The awesome thing about this is that you buy in smaller volumes, so orders are filled more quickly. But also, if a price drops or raises, with order spread you can buy in on several pricepoints while the price drops. And also you can sell on several pricepoints when the price raises. So if the price drops way further than expected, with the order spread you will take profit of that. This may seem a little complicated, but when adding the settings in your trader you will immediately see the effect of those changes at the bottom of your trader configuration where we display an ‘initial order book’. Below 2 examples which show the difference between spread and no spread.
Without order spread:
With order spread:
For example trading strategies and trader configurations, please read this article.
3 – Optimize using triggers & trading notifications
You have created your trader, selected the algorithm you want to use and configured the buy and sell offset settings. Basically, your trader is ready for simulation, backtesting or even live trading. However, there is more to it! You can optimize and automate your trader even further using ‘Trader triggers’.
We have written an article that covers the Cryptoblizz triggers feature in detail. Please read that article for more information and example.
4 – Start trader simulation
On your trader detail page you will find a button ‘Change trader status’ on the right top of your screen. Click this button to change the trader status to start simulation mode for your trader.
Note that in our screenshot the ‘Start live trading’ and ‘Stop trader’ buttons are disabled. Because we had not configured our API connection with the exchange. And obviously we cannot stop the trader because it had not yet been started.
So, as soon as you click ‘Start simulation’ your orders will be created and your bot will run every X seconds (configured in trader settings). If your orders are completed based on actual market prices, your bot will automatically setup counter orders for you. On the trader detail page you can always check your generated profits, buys and sells and completed or open orders.
5 – Backtest your trader
You already learned how to simulate your trader on live market data. However, Cryptoblizz offers another great tool with which you can test your trader’s performance on historical market data (up to 30 days back).
- First of all make sure you have created a trader (view all your traders via menu ‘Traders dashboard’).
- Now open the trader and if the trader is in simulation mode or live trading mode, stop the trader.
- Next, click the button ‘Reset trader data’ on the right top.
- You have now cleaned up the trader completely, but kept all the settings and triggers intact.
- Navigate to the menu item ‘Backtesting’, select your trader and choose your from and to date to run the backtest.
- As soon as your settings are in place you can start the backtest by clicking the button ‘Start backtest’.
- Now backtesting starts, this can take a little while, depending on how many days of data you are backtesting. The backtest progress will be shown in the ‘Backtest result’ box.
- Once the backtest completes you will see a complete result report including generated profits and completed orders. You can also open the trader detail page after you completed a backtest and see in detail which orders have been completed, which triggers have been executed, and much more.
That’s how you run a backtest over historical market data. This is a great tool to quickly find out how your trader and triggers are performing and give a pretty good indiciation of how your algorithm works.
A few sidenotes to the backtesting tool:
- Keep in mind that in real life results can differ slightly because in real life sometimes an order gets partially filled for example.
- Backtesting is only available on Bittrex data due to current API limitations. Ticks for backtesting are collected every 20 seconds which makes it pretty accurate.
- If you want to backtest your trader, but your trader is on a different exchange, just choose a pair that Bittrex also has. Bittrex has most pairs of all exchanges so most tradepairs will be available for backtesting.
- Simulation is available for all exchanges, so we always recommend to also simulate your trader against live market data for the chosen exchange.
Ready..? Start live trading!
Now you have simulated and backtested your traders and optimized it using triggers, you are totally ready to start live trading on an exchange. Always be carefull with live trading and start off with small amounts to see how it performs for you. Also, keep in mind that using a spread in your trader’s settings (as explained in step 2 of this article) will improve order filling because you will be trading in smaller volumes.
- Go to the trader detail page of the trader you want to start live trading with.
- If the trader is associated with a backtest (blue notice on top of the screen), please go to the menu ‘Backtesting’ and reset backtest first.
- On the trader detail page make sure you have stopped the trader (Change trader status > Stop trader).
- Next, reset your trader’s data using the ‘Reset trader data’ button.
- You have now cleaned up all data associated with this trader and you are ready to start live trading.
- Do a final check of your trader’s settings, make sure that the configured start balance is available in your account balance on the exchange.
- Ready? Click ‘Change trader status’ > ‘Start live trading’.
- You will then get a popup asking you to confirm. The popup will also show you what’s going to happen when you continue (which orders will be placed).
- Press the ‘Yes, continue’ button if you are happy with it and the trader will directly send the shown orders to the exchange.
You can now leave your Cryptoblizz installation page and come back at any time to check the status, generated profits, executed triggers, etc. The trader will automtically keep trading for you based on how your trader and triggers are configured.
General Cryptoblizz settings
You might have noticed the ‘Settings’ menu item. The settings page contains a few settings which apply to your complete cryptoblizz configuration. We will shortly explain the settings below.
Telegram (phone) notifications
Here you can enter your Telegram API token and chat ID. Telegram is an awesome app for instant messaging. It is available for Android and iOS and it’s free. You can connect Cryptoblizz to a Telegram chat and receive instant notifications on your phone of actual trades, errors or triggers. How to connect Cryptoblizz to Telegram is covered in this article.
On the same events that Telegram notifications can be send (order status change, trigger execution, errors on API integrations, and more) you can also (optionally) receive e-mail notifications. Just add your e-mail from and to address and you are ready to receive e-mail notifications.
The rest of the settings don’t need further explanation. All settings are explained by clicking the info icon next to the setting’s label.