3. Auto Trade Introduction
Auto Trade Overview
Crypto-ML’s Auto Trade connects our trade signals directly to your exchange account. This guide helps you get the most out of our Auto Trade service by explaining some of the key concepts and principles.
The key features are:
- Connect to a single exchange API. Binance Subaccounts and Coinbase Portfolios are not required, but can still be used to manage multiple Auto Trade Portfolios.
- Assign a percentage allocation to multiple cryptocurrencies you want to trade.
- Assign a percentage allocation to multiple trading strategies for each cryptocurrency.
- Assign a percentage to hold each cryptocurrency.
- Assign a percentage of profit capture that will be set aside for separate, long-term holding.
Crypto-ML’s Auto Trade connects our trade signals directly to your exchange account.
This means trades are executed on your behalf. This eliminates human error and lag.
There are three high-level steps for getting started:
- Sign-up for the Auto Trade Membership
- Connect your exchange account on the Auto Trade Exchange Setup
- Enable your trading selections on the Auto Trade Dashboard
Auto Trade is a secure solution that keeps you in control. Additionally, you only need to give it permission view and trade. You do not give it permission to transfer or withdraw funds.
In order to get the best results from Auto Trade and best match our Trade History, there are several best practices you should follow.
If you do not follow these best practices, your results may differ dramatically. Additionally, by following these steps, you should have better results in your trading overall as these best practices apply more broadly than just Auto Trade.
- Best Practice 1: Trade on Binance (not Coinbase Pro) against USDT. This optimizes your fees and liquidity.
- Best Practice 2: Further reduce fees by paying with BNB.
- Best Practice 3: Minimize emotional reaction to trades. Qualify on/off decisions with your personal strategy.
While these summarized bullets may be helpful, you should read this entire Auto Trade Best Practices post to understand the details. This is important because all traders are different and these recommendations may not be suitable for you.
► Read the Auto Trade Best Practices
Cryptocurrency is highly volatile. Volatility is required for trading but does open you to the risk of having the markets drop significantly after a position is opened. Knowing your options will help you effectively manage this situation when it occurs.
During drawdowns, you have three primary options:
1. Leave the position alone
Let Auto Trade close it when a “SELL” opportunity is identified by Crypto-ML’s systems. The position was opened for a reason. Even though there may be a temporary adverse event, it is possible the trade will still play out as expected and ultimately close for a profit.
The downside is the position may be open for an extended period of time and may still close for a loss. Additionally, you may face opportunity costs as your funds are “tied up” in the trade.
2. Manually close the position
If you want to cut your losses and not wait for a machine-generated signal, you can manually close your position by selling on your exchange. You may then also seek to manually capture winning trades as the market turns back around and ultimately syncs with Crypto-ML.
See how to Manually Trade Alongside Auto Trade for more.
3. Switch your goal by changing to the opposite pairing
This is the most sophisticated concept, but it does mitigate numerous risks. Crypto-ML has trading pairs with different goals. Changing your goal can help you take advantage of shifting market conditions.
If you are, for example, trading BTC-USD and facing a drawdown, you now have an open BTC position. If the market is falling and you believe it will continue to fall for an extended time, you may switch to the USD-BTC pair in the Auto Trade Dashboard. This other pair is ideal for falling markets and will attempt to accumulate BTC (rather than USD) as the market drops.
If the USD price of Bitcoin ultimately returns, you will ideally have more Bitcoin than when you started and therefore a higher overall portfolio balance.
To change your pairing, go to your Auto Trade Dashboard, pause Auto Trade, switch to USD-BTC (if you are on BTC-USD), then turn Auto Trade back on.
Learn more about Choosing Your Trading Pair.
Once you’re signed up and ready to go, you’ll:
- Connect your exchange
- Make your selections and start Auto Trade