New Trading Bot Zenbot Might Help Crypto Users Trade 40% Faster

What is zenbot? 

Zenbot is a Java trading bot that uses Node.js and MongoDB. This bot uses fully automatic technical analysis based on a trading approach. The bot analyzes technical indicators online and draws conclusions about the current rate change. Technical analysis is about creating data points that are obtained by applying calculation formulas to the price data of a cryptocurrency.

Any combination can be attributed to price data, for example, open and close prices for a certain period of time. A combination of several data points, based on different information about a cryptocurrency, allows you to create several indicators that allow you to analyze and predict the value of cryptocurrencies.

Zenbot tracking the key parameters of the currency, as well as receiving forecast trends for the current currency chart, allows you to visually see the change in values. 

Zenbot supports exchanges such as Binance, Bitfinex, Bitstamp, Bittrex, CEX.IO, GDAX, Gemini, HitBTC, Kraken, Poloniexand TheRockTrading, and this list is constantly updated with new exchanges. 

The bot is able to analyze and hone a trading strategy based on US rate trend data. On the basis of this feature, you can use your strategies and immediately view their effectiveness on historical data.

Also, the Bot has the ability to work in a training mode, which allows you to trade on a simulated balance in real time, observing market movements. This feature allows beginners to train their trading skills and forecast the effectiveness of the developed strategy without harming the wallet.

Zenbot usage precautions 

Since the cryptocurrencies themselves are at the testing stage and the world is just getting used to the new trading tool, the bot is not able to predict market movements with 100% probability, since it depends on many factors. So far, even Elon Musk’s twitter has a big role in shaping the price of many cryptocurrencies. All this suggests that trading with the help of this bot can tell you in which direction the rate will unfold and which model the currency price scenario can follow. However, you should understand that you make any trades yourself, referring to the tips of the bot itself.

How to use Zenbot 

To start trading, you need to select an exchange and a pair of currencies. To do this, you need to use abbreviations, the list of which will be given in the documentation for the bot, which can be obtained by entering the command 

zenbot list-selectors 

The structure of the command in this case will look like this:  

{exchange_slug}. {Asset} – {currency}.  

After selecting the required exchange and currency pair, you can start simulation for the selected currency. The simulation setup looks like this. To get the historical trend for the selected pair, enter the command 

zenbot backfill –days  

It is also possible to specify a period of time using the command 

zenbot backfill –start = “Unixtime in ms” –end = “Unixtime in ms” 

After selecting the required parameters, you can run a simulation and get a graph with technical data points plotted on it as a result. To change the display parameters, use the zenbot sim [options] command. A list of possible options can be obtained with command 

zenbot sim –help 

To launch a trading robot with API enabled, you need to enter the command 

zenbot trade [–paper] [–manual] 

Use the –paper flag to make simulated observations while observing the market. 

Use the –manual flag to keep track of the price and account balance, but do not perform automatic transactions. 

If you have not configured c.selector and conf.js, then trading will automatically start on the standard BTC / USD pair through the GDAX exchange. 

First, to start trading on the Poloniex exchange with the ETH-BTC pair, you must enter the following command. 

zenbot trade poloniex.eth-btc 

To achieve the full set of trading opportunities, a set of instructions must be followed. 

zenbot trade – help 

or 

zenbot strategy list 

Strategies of Zenbot 

The bot uses several different trading strategies based on different indicators of the technical assessment of the currency. 

• The standard strategy is based on the analysis of the EMA indicator. An exponential moving average (EMA) is a type of moving average (MA) that gives more weight and significance to the most recent data points. An exponential moving average is also called an exponentially weighted moving average. An exponentially weighted moving average is more responsive to recent price changes than a simple moving average (SMA), which applies the same weight to all observations over a period. The bot, based on this indicator, buys at the beginning of an uptrend and sells at the beginning of a downtrend. That being said, the Bot will always try to avoid trading fees by using only postal orders and thus acting as a market “maker” rather than a “taker”. However, some exchanges do not offer manufacturer discounts.
• Strategy based on RSI tracking. The Relative Strength Index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to assess overbought or oversold conditions in the price of a currency or other asset. RSI is displayed as an oscillator (a line chart that moves between two extreme points) and can have a value from 0 to 100. The bot, based on this indicator, gets confused to buy a share at a lower price and sell at a higher price. 

• SAR strategy. SAR stands for Stop and Reverse and it is the actual indicator used in the system. SAR follows price as the trend stretches over time. The indicator is below prices when they rise and above prices when they fall. Due to this, the indicator stops and reverses when the price trend reverses and breaks above or below the indicator. Typically, this strategy generates earlier signals than strategies based on the EMA, which leads to better capture of highs and lows and better protection against rapid price falls. 

Bottom Line

Using a bot as a trading assistant will allow you to speed up your trading and help you earn more since the bot is able to track the current state of the currency trend faster and make a buy or sell decision based on your chosen strategy. The strategy emulation function will allow you to test your assumptions regarding currency trading and hone one or another part. Trading in real-time without using real funds will also allow you to make sure that the chosen trading strategy is correct. 

Follow the crypto industry news and read reviews of great programs.