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today we're going to be looking at dollar  cost average bots so let's get straight to it   hey trader devs and welcome back to my  channel my name's david and on this channel   i go through youtube to find trading strategies  which i then use code to debunk the bad ones and   find the good ones today we're going to  be looking at dollar dollar sorry dollar   average cost and bots which are provided by  three commas and other api providers like   that found this strategy that we're going  to be discussing today and back testing on   a channel called trade alts you'll be able to  find the image here another fantastic youtuber   channel which goes through back testing  well actually goes through setting up bots   on three commas okay the best thing we can do is  get over to my computer look at the fundamentals   of this trading strategy how to set up the bots on  three commas and also we'll backtest it using code   if i could just ask for a couple of seconds  of your time to give me a big thumbs up   uh helps me to get this channel growing and also  more people into the community and more from the   merrier in the community if you like these kind of  content don't forget also to subscribe and you can   join my patreon where you get to chat with me on  discord and you get access to a load of for extra   strategies that i don't give away for free but  they also are most of my work is free on trading   view okay okay let's go over to the computer and  start having a look at this training strategy   okay here we are on my computer very quickly let  me just show you the uh the youtuber that actually   started that this strategy called trade-outs he  has an absolutely fantastic awesome community   behind him on telegram and also on discord i  wait it's well worth going to have a look at this   channel and also subscribing just like me right  okay what we're gonna do today is very quickly   go over three commas setting up the bots going  through all of his strategy on how to set up the   bots and then i'm gonna go over to trading view  as you can see here and we're gonna look at some   of the results okay okay so three commas is a bot  platform for building bots very quickly with no   code a very good system uh they sometimes have  a couple of problems with ups and downs as the   market dumps but most exchanges and things like  that do uh i've been using the three commas for   quite a long time and now i have a yearly plan and  i've got to say that i'm pretty happy with it now   they do have plans which are for free here which  allows you one uh dca bot but i currently have   the forty nine dollar plan here when i paid it  annually uh you can get access for three days   at testing this so you can give it a good old test  allow paper trading etc uh there you go so that is   the idea of three commas you can find the link  down in the description uh gives a kick back   to our channel and also you get a special offer  right okay so i'm going to log into my account okay here is my account on three commas right  once you've logged in this is the screen that   you'll get you've got the bitcoin prices up here  you have on your right left hand side we have our   exchanges here so you'll be connecting  up to something like binance or buy bit   we have a smart trading panel here which i don't  use particularly much it helps you to trade better   the dca bots is the things that we're  going to be looking at today and   uh going to be setting up we have a grid  bot and option bot sensor marketplace   the marketplace is where you can buy uh other  people's signals i don't use that either myself   but uh today we're going to be looking at the  dca bots right okay if we scroll over here   we can see when we're clicking on my deals we  have the bots are actually active at the moment uh we can see uh that i have deals are going on in  a btc avx algo luna uni and dodge today we had the   current pump so actually everything's slightly in  the red because it's obviously brought a bit high   up but that's not a problem because it actually  buys as the it drops back down now let me have a   let me explain that a little bit better on how uh  dc bots actually work well what actually happens   i'm going to go over to a chart here explanation  of how i understand dca bots work on three commas   right the idea is is that you activate the bot  and the bot goes away and automatically buys uh   currency now he isn't trying to get the best price  unless you uh configure a strategy what it does is   it actually purchases uh the cryptocurrency and if  the cryptocurrency continues to dip and doesn't go   up by the 1.5 percent which we'll configure as  the take profit right now this is the take profit   level so i'm going to put that as take profit here  tp and we're going to change the color to green okay now that didn't work oh yes we did it it was  a text it went style green okay so now it's green   okay so that's our take profit level now okay  as the price starts going down in a trade-off   strategy what happens is we activate safety  orders uh this one would have been twenty   dollars and these lower as it starts dropping  we buy fifty dollars here i'm gonna change the   color of that one as well let's make that  a nice pinky color right okay so that would   by two percent lower i don't know if that's two  percent but it's just a example and then it would   continue buying as we dip 50 dollar orders all the  way down to about here now this obviously would be   like that now that brings our uh average  orders uh average buy price down as we keep   buying and buying and buying so let's say that  we're roughly brought down to here thanks to the   safety orders and the take profit holder obviously  would be now 1.5 of that so it would actually be   around just here so it would actually  be about here which is roughly there   so as you can see as the orders get as the  cryptocurrency starts to dump we start purchasing   more of the cryptocurrency so that our average  price is actually lower so that our take profit   is also much lower so it's easier to get get  it to this point okay so that is the strategy   uh as i said it's actually a strategy which  is pretty simple to set up in uh three commas   we're going to set up a bot right now with the  same settings as uh as trade outs and we're also   going to then back test it and try and improve on  the numbers to get better results right let's go right here we are back on three commas  right to set up a bot is pretty simple   we literally go over here to the  dc a bot click the plus button here   then we're going to start building a box well uh  oh to trade all actually builds one bot per pair   you can actually use multi pairs so the reason  he says that he uses one pair is it's easier in   the long run to look after the bots each and every  one of them would be slightly different settings   so uh for instance maybe bitcoin as it's more  stable than other altcoins uh it would be that   they're more wiser to put more money into that  than others now that's not exactly what he says   but i think that's the gist of things right so  the idea here is we're going to be setting up a   bot right to find the pairs that we're going to  be doing i tend to use the top 20 pairs here uh   i know that uh trader actually reduced his  from about 50 to about 20 i believe recently   uh as the market dropped and not long  ago uh so we're going to be taking these   20 here where we're going to leave out  obviously the stable coins uh and at the   moment i'm going to be building a what let's  go for litecoin okay and i haven't got a coin   bot so i'm going to be building a litecoin box  so we're going to start by giving it a name ltd a usdb usdb right i actually use usdb instead  of usdt because when you're trading on binance   actually fees are actually reduced for trading  with the usdb and i believe that i heard somewhere   that uh centennial the end of the year sometime  they are actually free right so we're going to   be going here we're going to be choosing our pair  we've got a single pair so i'm going to be using   ltc usd b ah sorry b usd ah right the wrong way  around okay fantastic uh we're gonna be creating   a long only bot we're gonna want our uh profit  in uh ltc some people prefer to have it in a b   usd because of the recent dump i actually like to  accumulate free a cryptocurrency as it's going up   uh we're going to create a base order  of 20 and we're going to double that by   for the safety order now recently he also took  it up to 50 from 40. we're going to be using  

the market limit order sorry the type of order  as limit orders the reason being is that also   reduce our fee when using usd b not b usd usb  usd and not usd b so it's also saving us money   now there is ways of starting the deals we're  going to be looking at that on back testing in   a minute trade uh trade alt actually uses  the open new trades asap so that means   so when using the open uh trades at asap  it literally means that it's gonna fire a   trade one after the other as they close  as the market dips this may not be the   best way to do things but it seems to work  for him so we're going to do that with ours   and then maybe in future videos i will set  up a uh set up a trading view indicator so   that we can stop buying when the market dips  too much okay let's have a look at this again okay so uh we're going to leave that as the same  settings as trader alt right he takes profit   at 1.25 recently it was 1.5 before uh we're  also going to backtest the two so i'm going   to put it at 1.25 for the moment it doesn't  use a trailing uh another thing that we will be   back testing with a trading view in a moment to  see if it works better with a training stop or not   right there's stop loss now in trade uh trade  also strategy we don't activate the stop loss   we leave it just to continue buying the dip okay  then we go down to the the safety orders now that   is the orders that are placed after the main base  order so we're going to be looking at this here   to decrease the average price now maximum safety  orders i put to 10 i believe it was uh 9 or 10   and the maximum active safety trade council  is just one that's the breast deviation here   trade outputs as two the safety order volume scale  i believe was 0.5 1.05 and the step up scale was  

one all of these safety order settings we will be  testing and you'll be able to test on the trading   view uh platform the trading view indicator  that i made so uh the next thing that we're   doing is looking at the advanced settings advanced  settings uh nothing really changes on here except   for the maximum price to open deal i know we  didn't even have that open deals and stop none   of that right okay everything was completely  left as it is right now what we do is then we   create the bot we click here create bot and  we press start and that's your bot started okay now i'm back on my my deals page here as  you can see uh it seems like ltc a bsd b usd has   actually activated a purchase and i'm currently  down at 0.05 cents if i click the refresh and it's   0.06 6 cents so what happens as i said is as this  goes down it continues buying so it decreases the   average price now i've been subscribed to trade  outs system for a long time i've had about 20 bots   as i said i've taken the top 20 cryptocurrencies  and i have just left them behind now you have to   have nerves of steel when everything is actually  crashing like they did a couple of months ago   to leave your bots to actually run and  you also have to have enough money in   your account to cover the safety orders for all  of those uh bots now that uh now although i did   i actually had to even open a couple of uh extra  safety orders for uh some of the currencies but as   the market has actually come back up we have  recovered the money and actually earned more another good thing is that i'm actually always  taking the profit in a cryptocurrency and   it gives back me my busd once the take profit  is taken which means that i'm actually creating   crypto bags myself uh just by sitting passively  leaving them to run by itself right okay so that   is simply how to set them up as i said earlier  trade on actually uses one bot per crypto pair   so uh he's actually got about 50 bucks you  can use multiple pairs in one side bot in one   single bot sorry but the the best idea i believe  as well is to have one pair per bot uh that way we   can optimize the settings for each of them now now  thanks to the trading view strategy that i'm going   to show you in a minute that we can actually  optimize them and find out roughly what the   back testing results were so that we can get  the best settings for our bots right let's have   a look at that see how we can improve on this  and get better settings and don't forget you   can also download all of these settings i will  share my best settings in my discord channel   which you can get access to on patreon okay  let's go back over to the computer okay back   here on the computer right let's go back over  to trading view here i'm going to remove these   lovely aligns here very quickly and we're going  to start looking at how we code in the indicator   right okay so i actually found an indicator which  helped me very much i will put the link down the   description to the actual original indicator  and this is what i've come up with myself   all right okay okay as always we have our david  tech dashboard here and as you can see we are   as cr uh best we can we are emulating  the uh bot that is created with   three commas so as you can see we're doing  our base order here and as price comes down   we buy a safety order one safety order two  and as it comes up we hit our take profits   so let's have a start having a look at the bank  testing results to see how okay we're actually   going to be looking at this slightly differently  than other strategies that i have created today   as they it works in a different way with the  safety orders etc as you can see my dashboard   is a lot less colorful than normal over here  with no traffic light system and even most of   the information here is absolutely useless but  i've added it anyway most important thing that   we're going to be doing is trying to increase  the net profit uh here which is also over here   which is 18.56 percent we'll look at that in  a second even the percent profit profitable   actually doesn't really make much sense inside  this strategy because whereas we are following   the curve as it comes down buying uh the dips okay  uh profit factor maybe we'll look at afterwards uh   the max drawdown also as we're buying the dips  uh doesn't always make particularly much sense   because we're buying as the drawdown comes down  so as the last order would have been about 2.12   after last order uh right okay maybe we will  try and decrease the number of trades because   that would mean that we have a decreasing number  of safety orders that the safety orders maximum   safety orders used with try and decrease as  well that kind of thing we can try and decrease   with the strategy so as i said earlier what  we're going to be doing is we're going to be   trying to optimize this the best possible  but after the video i will also continue to   optimize all of the coins that i actually  use in the top 20 off of coin at market cap   uh you'll be able to download those  settings in a text file outside inside   our disk at cord channel what's great about the  community is everybody seems to be sharing their   best settings as well so it's not just me we're  over three or four hundred now uh people are   sharing the settings so okay let's start trying  to optimize uh the strategy so that we can get   the best settings okay so what we're going to do  is go into this code button here and as you can   see pre-defined i have actually pre-defined all  of the uh settings as i have on the three commas   so we're taking profit at 1.5 percent no trading  stop no stop loss uh we're using a fixed amount  

which is 20 and 50 for safety orders max number  of safety orders was nine deviation in price was   two we had the safety order volume scout is zero  point uh no one point zero five one as and the   safety orders step scout was one we're going to  be using the deal start condition as stock asap   uh none of this is actually uh used at the moment  because we're using the star asap we can also   use a long or short box we're using  long bots we're only buying as   longs sorry right okay we can also define the  times of the test the back test so we can backtest   on certain periods etc okay the first  thing i'd like to test is the difference in   take profit because i know that uh in the  first video of uh tradeouts he actually   takes profit at 1.5 and then he decreased  that to 1.25 so we're actually gonna see   whether that gives us a better uh amount of  net profit or not uh actually it decreased   the net profit uh we increased the number of  trades i believe let's have a look back again yes even decree increased the number of trades  but we decreased our net profit and although we   actually decreased than the take profit we still  had a max number of safety orders used ever   nine okay so that so personally i would still  leave this at 1.5 as it seems to give better   results let's try maybe even a two percent to  see whether that gives us a better okay that   gives us a net profit of 21 so maybe two would  even be better let's continue increasing that okay i have been playing around  with it and it seems like to me that   actually 2.5 actually seems to be a good  number where we get 26 net profit on   what we've actually added okay uh next what we're  going to be doing is looking to find out whether   we add a trading stop now we can add a trading  stop at one percent so if it dips at more than   one percent it continues trading stop that has  actually decreased our net profit i believe   yes it's decreased it by one percent so if  i go 1.5 percent or maybe even two percent   okay so it probably is better to leave your  trading profit off so is that setting was good   i'm going to continue playing around with this  uh and i'll get back to you in about five minutes spending several hours rattling my brain smashing  my head against my computer and finally finding a   settings which are good for me it seems that  tradeouts settings were pretty darn right and   they were one of the better settings that i come  up with as well so let's get over the computer   we're going to discuss that and we'll also have a  look at what the results could potentially be for   this account with a couple of thousand dollars in  the top 20 cryptocurrencies so let's have a look   oh yeah here we are back at my computer okay as  i said earlier i haven't really managed to change   much because the problem is is as soon as you  start changing the settings for the safety orders   you end up falling down a trap of seeing let's  just change this to two you see the net profit   goes up humongously to 278 percent but as you can  see on uh three commas if you take up to two here   you can see this wonderful tool here that actually  tells you how much you'll be spending and if all   of the uh all of the uh activated orders were done  you'd need 6.5 million dollars to fund your bot  

which is definitely not what i want so  let me take that back to 1.0 okay so 1.05   it seems to be the sweet spot you can i did  actually try uh safety order volume as 1.1 and 1.2   but the return on investment wasn't good enough  and we had to also increase our budget to almost   two thousand dollars instead of one point  one thousand one hundred dollars for each bot   okay so that really was not what i wanted  although as i said it did increase let me have a   look very quickly increased our net profit up to  fifteen percent instead of twelve so really not   worth uh worth the extra 300 investment in  my opinion other things that i tested was   taking up the base for uh order uh to 25 the  problem with that is is that where we'd have   to increase the number of safety orders  i've worked out that 16 seems to be the   the maximum number of safety orders that ever  activated uh for the the period of three months   uh maximum safety countless right uh the deviation  from the main order was uh two percent now if you   take this up slightly you can uh increase the  decrease the number of safety bots that you use   but you're also going to decrease your earning  profit so two seems to be the seat spot as well   the only real thing that i actually did manage  to change was the net profit which i put at 2.1   percent uh if you take it down to 1.5 it  decreases considerably our net profit to 9   and if you go all the way back to 1.25 as i said  earlier we're gonna be down to nine percent so   if you take it up to two to two point  one percent this is where i found that   that my speech what was with twelve plus twelve  almost thirteen percent on your net profit there   so if you can wait out a little bit uh i suggest  well i personally i'm going to be waiting for 2.1  

as it always seems to go up by that 2.1 percent  anyway we're also decreasing the number of bots   that are used so for me it's a win-win situation  other than that i also tried the deal at start   conditions i tried this here which is your  tv presets it didn't give me enough of a   extra win or decrease the number of orders  enough for me to want to uh try it let me try   on strong very quickly strong here decreased us  to 10 and took about 40 orders off week gave us   roughly the same amount of orders i believe  just give me a couple of seconds he had 10   different orders and it gave us one percent less  so maybe i would put that on a week just so that   i didn't have to put the extra 10 orders in to  make it 0.5 percent on the on on the net profit   other than that that was pretty much it that was  all i come up with as uh changes to the offers   so let's go to our calculator very quickly and  see what would have to uh have her to fund at   this segment on the calculator here if i  go over to our three commas now we've got   16 bots which is our maximum number of  bots and we're at zero at 1.05 increase  

that means that each of our bots would  have to have 1 200 to be able to fund it   now if we're going to be doing it on the top 20  cryptocurrencies uh times 20 that means that we're   going to need 24 000 to fund our account okay and  we're going to be aiming for a net profit of 12   roughly on the on the amount so that's going to be  186 dollars times twenty that's going to give us   three thousand seven hundred dollars return now  now this is completely imaginary and could be   completely different to what we're doing we could  also compound we could increase the amount of uh   money each time we make an order here our  base orders as the crown grows uh we could   also earn less on some cryptocurrencies or more  on other ones so this 12 percent may not be 12   on other cryptocurrencies if we literally  export these settings over to ethereum   for example we can see that we are earning  17 so that's better let's go over to xrp   17 on xrp ada 22 on ada so as i said each and  every one of them is completely different i mean   that completely changes our uh our outcome let's  have a look at the calculator again if we go 300   and 335 times 20 if we manage to make that that's  six thousand seven hundred dollars every three   months so so completely different results for  every outcome so okay the last thing i'm going   to do is set up a bot for doge very quickly on  three commas these are the settings which is   the settings we just discussed it gives almost  a 30 return on investment so i'm going to show   you how i'd export these settings very quickly  over to three commas right okay so i'm gonna   split my screen like this i can see the settings  as well let me just increase that enough right   okay that's fantastic and we have our three commas  here i'm going to click the plus button here okay and then we're going to give our dot   our bot a name b u s d dot and we're  going to look for doge here oops so we're going to go d and b usd be usd there we go right it's going  to be the same as the others we're going to be   20 and 50 here as our base market we're gonna  we're also going to keep the doge as doge that's   my personal preference you don't have to uh  limit orders so we don't have fees we're gonna   add here our trading view on 15 minutes and a  buy but not a strong buy we're going to have 2.1   profit as our limit no stop loss maximum uh trades  is going to be 16 i'll put it on 17 just in case uh deviation was a two and then we're going  to do a 1.05 as i discussed earlier in this   safety orders volume scale okay and everything  else that stays as is that means that we will   technically need 1 300 uh in our account and  to run this bot if it all steps as much as   that okay let's create the bot and press start OK  now that will hopefully start the bot and buy us   some doge as soon as it uh hits the 15-minute  buyer signal on trading view okay guys we've   managed to get quite a lot done today we've  managed to back test over several hundred results   this dca strategy uh shows that trade at alt's  uh settings were pretty good and pretty spun on   a couple of changes that i would have made myself  to my strategy but they were pretty spot on anyway   do go and visit his uh youtube  channel there's absolutely   loads of resources and interesting  information for anybody setting up bots   also don't forget to give this video a thumbs up  if you enjoyed it and don't forget to subscribe   i'm adding content every week three days a week  now so chess testing back testing strategies   and also investment ideas i hope you enjoyed the  video that leaves me to wish you a happy monday  

2021-10-19 13:21

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