IN & OUT Trading Bot Bots

Classic In & Out strategy for entering and exiting ANY coin pair or market position with guaranteed profit on order execution.

* Bold words are bot commands

Initial Configuration – If you get lost config parameters in Red back to this original

How it Works?

  1. Configure your market, entry, and exit prices.
  2. Run Bot

*If you need help learning initial hummingbot commands click here

The Strategy

If you are short selling, (Buying and then Selling) then here is what you would do.

– First, run “import IN_1.yml”

This command will import the IN strategy

Market Parameter

Once imported you need to determine what market you will enter via the “config market” command.

This will allow you to determine what market the bot will enter.

Order Size

Make sure you properly configure the order size based on your market, please be cautious before running bot as this parameter will need to be changed if markets are changed.

– Run “config order_amount” to change order size.

Entry Parameter

– Next configure entry price by running “config price_floor” then “config price_celling” separately configuring both values.

This will bring up the option to choose your price levels.

Based on whether these levels are below or above the mid-price the bot will ONLY place either Sell or Buy orders.  See here for more details on Price Bands

In my example below I set these to my price ceiling and floor to $56,660

This means when Bitcoins price falls below my defined price floor ONLY buy orders will activate defined by the bid_spread value.

Consequently, this also means when Bitcoins price falls below my defined price celling ONLY sell orders will activate defined by the bid_spread value.

– The next configuration will be your Bid and Ask spreads, run “config bid_spread” then “config ask_spread” separately configuring both values.

This will bring up the option to choose your spread levels.

Based on your chosen spread percentage the bot will ONLY place either Sell or Buy orders,  at these spread levels.

In my example below I set my bid spread too 75% and ask spread too 0.01%

This means when I start the bot or my orders refresh, the bot will place a Bid order extremely far away and my Ask order very close to the mid price.

So every time you want to ENTER a position on the Buy or Sell side you set the spread to 0.01%

And every time you DON’T want to ENTER on the Buy or Sell side you set the spread to 75%

Now you are ready to start the IN_1.yml strategy.

Run “start”, to stop at anytime and cancel open orders run “stop”

The bot will run until either the order is filled, or a connection interruption occurs.

To avoid interruptions AWS installations are recommended.

Once the order eventually fills you will need to manually configure the bot once more before locking in guaranteed profit.

Exit Parameter

– First, run “import OUT_1.yml”

This command will import the OUT strategy

Next, using the information above – reconfigure your market, entry, and exit prices in accordance with your strategy’s profit target.

Once complete start the bot and wait for your order to fill.

You will know everything is working properly if your log file is updating orders similar to this:

Example: Short Sell Bitcoin with OUT & IN Trading Strategy

Here are example trades the bot made, I will break down my logic to this strategy.

* Note the SELL trade did not fill in one order BUT it took two separate buy orders to fill.

History

Market = BTC/USDT

Bitcoin entry price = $56,660

Bitcoin exit price = $53,786

Total Order Sell Amount = $10.87

Total Order Buy Amount =$10.33

Total Trading Fees = $0.02

Total USDT Profit = $0.52

Total Return Percentage = 5%

Trade Logic

After originally entering a short sell position using the IN_1.yml strategy I needed to configure my take profit OUT_1.yml strategy.

To make 5 percent return I first need to calculate how much Bitcoin must move in my strategies direction in order to secure my profit target.

Once I know this number I then set my price celling and floor to it, that way when the mid-price crosses my order will trigger.

Rinse and repeat.

Final Thoughts

To find markets to enter I recommend using https://cryptoalerts.ai/

This along with all other bot strategy configurations should be made in accordance with prior overall analysis as to where the market is headed.

For more information on Technical Analysis and learning how to read charts check out my course here:

Start Trading Stocks and Crypto With A Trading Simulator!

You can alternatively use test net money to trade with following this guide:

https://docs.hummingbot.io/global-configs/paper-trade/

This Post Has 18 Comments

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