About two years ago a bunch of redditors alongside myself were spending a lot of time exploring how a volatility trading bot could be used to ride the price increase of any given asset on a crypto exchange, and sell at the top.
The Binance Volatility Bot was thus born and people were quick to fork or configure and use their own. The bot would essentially allow you to scan all assets on Binance and Buy any asset that say gains more than 4% in the last 6 minutes. You could configure it to look for any level of volatility, and any timeframe, for ALL assets on the exchange.
Some people then pointed out that downloading and running a script is not a very easy way of using this this so a bunch of us decided to build a platform together. But we kept on adding new features and it became a much bigger project than we initially expected.
We just released AESIR last week, and it's been received very positively which makes us all incredibly happy and humbled with the first big step of our journey so far.
Some of you were curious to know how AESIR works, so here's how you can built any kind of trading bot with AESIR. Hoping that a deepdive into how trading bot platforms work can dispel a lot of the misconceptions around trading bots, what they are and what they're not.
You start by choosing your general settings. These apply to all types of trading bots that you're going to build and generally include settings like amount spent per trade, exit strategy and more.
https://preview.redd.it/t83dtwhf3u0b1.jpg?width=2139&format=pjpg&auto=webp&v=enabled&s=1ab7a6f986454e0288471fe8f89aad57564d7daf
Order Amount: The amount each trade will be placed for
Max Orders: The maximum number of open orders that the bot will manage.
Purchase Holding: Whether to buy an asset that has already been bought
Volatility Cooloff: For how long to ignore a buy signal from an asset that has just been bought
Frequency: How often to check the buy conditions
Coins to Analyse: Coins to include in analysis. Leaving it empty will analyse ALL coins on the exchange.
Take Profit / Stop loss: % of gain or loss at which a trade will be closed.
Trailing values: Allows the use of a Trailing Stop loss, which is an improved version of the normal Take Profit / Stop Loss paradigm. It allows you to ride an upwards trend for as long as the trend continues.
With the general settings out of the way, we must now build an actual strategy and its logic. The above determines how a bot behaves when buying and managing assets, but doesn't tell it what to do and when to buy an asset. This is where we'll need to add a logic layer.
AESIR comes with 3 types of Logic layers and the great this is you can stack them on top of each other to create really unique signals.
https://preview.redd.it/20z5sy7g3u0b1.jpg?width=2183&format=pjpg&auto=webp&v=enabled&s=cc88b20e65586caa4927337f7a90520e6221cc88
The Volscan Layer is basically the volatility bot that I described above. It generated buy signals based on asset volatility. For instance the setup below will aim to generate buy signals on the coins selected in the General Options layer, once the Price fluctuates by more than 3% in 30 seconds.
https://preview.redd.it/xc0w5pkg3u0b1.jpg?width=1785&format=pjpg&auto=webp&v=enabled&s=7c250694e7c5f9cb348fdeb8c3e35a7763bc4a8e
But you can keep building complexity. Adding a new Layer will make the Bot evaluate both layers, and only buy an asset once both layers signal a buy. In addition to the logic above, we're also adding a Computed Indicators layer that uses TradingView signals for Moving Averages and Oscillators.
https://preview.redd.it/6bxw7jxg3u0b1.jpg?width=1759&format=pjpg&auto=webp&v=enabled&s=2681c6234aaf1b1dd66ee012fec4ff2f16dd82d5
The condition in here means that in addition to the Volatility logic, the coins selected in General Options must also have buy signals generated on EMA5, EMA10, EMA30, MACD and RSI – according to Tradingview.
Note the Threshold fields – This represent how many of the MAs or Oscillators above need to be positive to return a buy signal. Right now it's 3/3 and 2/2 but you could make it so that any 2 Moving averaged need to return a buy signal, not all 3. Same for Oscillators.
Finally, adding a Technical Analysis Layer means that now all 3 Layers must generate a buy signal.
https://preview.redd.it/je4iismh3u0b1.jpg?width=2600&format=pjpg&auto=webp&v=enabled&s=83b3b736f5baabda50a7d67c2155a75ff31f6e96
We opted for a single condition: Awesome Oscillator is greater than 5, but the TA module itself can create complex nested TA logic.
Once the config is saved, you can easily run it in paper trading mode:
https://preview.redd.it/lyxqvj2i3u0b1.jpg?width=1734&format=pjpg&auto=webp&v=enabled&s=08aa74774fe74af8f5c347ee947b9f5f047496a9
And that's pretty much how trading bots work – well how ours does anyway 🙂
If you're curious about our project you can check AESIR out at https://app.aesircrypto.com
or join our subreddit https://www.reddit.com/r/aesirofficial/
