Hi to you all! New user here! Pretty much a newbie in trading, just a year o so, just know the basic stuff. But i have some tech/programming knowledge. In this year i succesfully developed a working trading bot (operating currently on ByBit's testnet with Perpetual USDT contracts, why? low fees. But i can easily shift from here to any exchange/broker that has a similar API). How it works? Pretty simple: 1) I have to set a TP/SL (i use mostly 1% with 1:1 ratio or 1%TP and 0.5%, maybe too little? giving crypto volatility) and a timeframe (mainly 1 or 5 minutes). And i only use the 50 pairs that have more volume in the last 24hs (trying to solve the problem that i describe later). 2) I monitor the market and simulate buys (not short operations yet) giving a indicator (o indicators combination: RSI, SMA, DEMA, BBands, MACD, STOCH, TradingView Opinion, Candle Patters) and save a structure that giving a strategy (combination of Technical Indicators) returns the % of operations that would come right (giving the initials TP/SL). 3) In the "real" part of the bot, i also monitor the same market, and when i come upon one of those combinations that have a possibility > desired i enter the operation. One of the problems that im facing: Slippage, sometimes the SL executes at a lower (some times REALLY lower) price that the one that i set. Could it be that some bybits issue? Or that some pairs have a lack of liquidity? Thats why i only use the ones with more volume. Now, is there any fatal error that im doing and not seeing?: What i can do to improve the work? Is there any fault that any of you (from what i've read there are tone of REALLY experienced people here!) and im not seeing it? (Remember, pretty newbie on some stuff here, you can talk to me as a golden retreiver). Thank you and have a nice one!
I can definitely understand your pain. As an overnight trader I deal with slippage all night. It does help if one's performance metrics based on a large sample of trades uses a math/strategy formula to already take slippage into account.
Maybe there's less slippage on spot trading than in perpetual contracts? There's any thing that u can messure in order to prevent slippage (i think it gets significantly higher with low volume shitcoins, but don't know if it was just luck)? There is a main reason to slippage? Thanks!
Slippage is inevitable and it cost alot, my suggestion is to increase profit probability till Slippage become insignificant (covered by high profit). U need to work harder should your profit is still under threats by Slippage. Every day, few my traders suffer loss by Slippage but I ignore it. When LIVE and using relatively big lots then u need to research deeper on how broker pools their orders to fight with certain algo.
Use the regular 3 month contracts and piece together the longer time period. Continuous is only a representation for your first pass. Look at the behaviors at roll over. You see that in the continuous? More work but more accuracy.