Mastering the Art of Effortless Wealth
A Cheeky Guide to Setting Up Your Cryptohopper Trading Bot
Welcome to the magical world of automated trading, where your financial dreams can turn into reality while you sleep, provided you’ve got a wizard’s touch in setting up your trading bot.
This isn’t just another guide;
it’s your treasure map to mastering Cryptohopper’s Trading Bot.
But before we dive into the deep end, let’s get one thing crystal clear: Trading bots are the Ferraris of the financial racetrack — they’re not for the faint of wallet. To truly harness their power, you need what we in the biz call “fuck you money” — think of it as your ticket to the VIP trading lounge. A cool minimum of $10,000 is the opening bid for your seat at the table.
Anything less?
You’re just betting pennies at the slots.
Here’s the deal: your hefty stack isn’t just to flash around — it’s strategic.
You see, not all your cash is on the frontline; some of it’s lounging back, sipping a cocktail, waiting for the perfect moment to jump into the fray, like a seasoned DCA (Dollar Cost Averaging) move. And if you’re scratching your head wondering why a chunk of your change is chilling instead of churning, stick around — we’ll get into the nitty-gritty of why a modest bankroll doesn’t play well with bot strategies.
New to the scene and feeling like this guide is in a foreign language?
No sweat. We all start somewhere, and that’s ground zero, building up your trading war chest. It’s all about baby steps and big dreams. And, if you’ve got the grit and the greenbacks, you can ride the crypto wave too.
Now, if you’ve got the gusto to command these digital dollars like a symphony, we’re about to get hands-on with Cryptohopper and Kraken
— a dynamic duo for the discerning trader. Get those accounts prepped, because this isn’t a spectator sport. You’ll want to roll up your sleeves and tinker with the settings as we march through this guide.
And don’t worry about getting lost in the sauce — I’ve whipped up a handy-dandy table of contents. Feel free to jump around; it’s there to help you pinpoint the exact intel you need, exactly when you need it.
So, buckle up as we embark on a journey to turn those complex graphs and numbers into your loyal minions working tirelessly for your wealth.
Table of Contents
1. Baseconfig
- Basic Settings
- Exchange
- Creating the API Key (Kraken)
- Troubleshooting: Clearing the Fog
- Trading with Kraken: Navigating the Essentials
- Use Ticker Rate
- Notifications
2. Config Pools
- Basic Settings
- Buy Settings
- Strategy
- Trailing Stop-Buy
- Sell Settings
- Sell Strategy
- Stop-Loss
- Trailing Stop-Loss
- Auto Close
- Dollar Cost Averaging
3. Signals
4. Triggers
- Understanding Triggers
- Example 1: Trading with the Trend (EMA Triggers)
- How To Create an EMA Trigger
- Example 2: Adapting Templates to Market Conditions
5. Ensuring Correct Bot Setup: A Knight’s Check-Up
6. Conclusion
1. Baseconfig:
Your Command Center Think of Baseconfig as the captain’s bridge of your trading ship. Here, you’ll plot your course through the stormy seas of the crypto-market. Connect with your exchange like a handshake with an old friend, whisper your buy and sell secrets, and set the spells that trigger your trades. Whether you’re dancing with strategy or flirting with signals, this is where it all begins.
Navigating Your Baseconfig:
Basic Settings:
The Identity Badge First things first, let’s give your bot a moniker, a name that resonates with your financial ambitions or simply makes you smile. It’s your bot’s digital signature, after all.
Exchange:
Here’s where you align your bot with the chosen exchange. Whether you’re gearing up for simulated battles with Paper Trading or diving into the live market with real funds, this is where your journey begins. Click here for an overview of the best Exchanges.
In this guide, we’re specifically focusing on bridging your Cryptohopper bot with the Kraken exchange. If you’re not yet part of the Kraken community, it’s the perfect time to start.
Sign up here and dive into the exciting world of cryptocurrency trading.
Creating the API Key (Kraken):
To set the stage for your bot’s trading performance, it’s essential to establish a reliable link with Kraken through API Keys. These keys are like secret passcodes that grant your bot the ability to trade, monitor balances, and execute strategies on your behalf.
Step One: Anchoring at Kraken’s Shores
If Kraken’s waters are uncharted territory for you, begin by creating an account on their website.
Step Two: Fortifying Your Account
With your account ready, steer towards “Security” in your settings, and then anchor down at the “API” section to lay the groundwork for your API keys.
Step Three:
Crafting Your API Key It’s time to forge your key. Click “Add key,” christen it with a name, set a Nonce Window of 10000, and empower it with all permissions except for “Withdraw funds.” Then, bring it to life by clicking “Generate key.”
Step Four:
Once Kraken entrusts you with the API Key, carry it over to your Cryptohopper’s Baseconfig under the “Exchange” settings.
Hold off on saving these keys within Cryptohopper for now; ensure they are securely saved on Kraken first.
Step Five:
Forge a second API Key by mirroring the steps above. Once you’ve blessed both Kraken and Cryptohopper with your new keys, give them a moment to whisper to each other. Soon, your Kraken balance will unfurl before your eyes on Cryptohopper.
Troubleshooting: Clearing the Fog
Sometimes, the connection might hit a snag, and your exchange balance might play hide and seek. If that happens, it could be due to your browser’s “auto-fill” feature. Outsmart this by turning off auto-fill, switching to incognito mode, trying a different browser, or pausing your password manager.
Trading with Kraken: Navigating the Essentials
- Kraken’s Minimums and Requirements:
To ensure smooth sailing, familiarize yourself with Kraken’s minimum trade amounts for the Base currency €5, $5, Bitcoin it's 0.0001 BTC, for Ethereum it’s 0.01 ETH. For those interested in trading with alternative base currencies, a comprehensive list is available for your convenience.
Simply click here to explore your options. - Kraken’s Exchange Status:
If Kraken seems to be sending out distress signals, check the exchange’s status here to see if there’s a storm you should know about. - Geographic Restrictions:
Remember, not all treasures can be plundered from every corner of the map. Some trading pairs may be out of reach depending on where your flag is planted. Check out Kraken’s restricted markets for your locale here.
Use Ticker Rate:
The Price Compass The ticker rate is your bot’s guiding star, helping it navigate the price levels at which to place orders.
You’ve got three paths to choose from:
- “Highest bid/Lowest ask”:
This default setting uses the highest bid for buying and the lowest ask for selling. - “Use last tick if higher/lower”:
Your bot will use the last tick price, but only if it’s more favorable. - “Always use last tick”:
Trust in the last tick’s price, come what may.
Notifications: Your Bot’s Chatter
- Notification on trade:
The Victory Cry Toggle this on if you wish to be heralded with a notification every time your bot clinches a trade. - Notification on trade error:
The Warning Flares Mistakes happen, but you can choose to be alerted immediately, so you’re always in the know and ready to troubleshoot. - Notify on canceled order:
The Change of Plans Memo If an order retreats and gets canceled, this toggle ensures you’re informed posthaste.
Your Baseconfig is the brains of the operation, and now you’re equipped to set it up for success with ease and clarity.
2. Config Pools:
Your Strategy Cauldrons Here’s where you mix up potions for each currency, tailoring strategies for the whimsical moods of volatile assets. You might want to be aggressive with Bitcoin but treat Ethereum like a delicate flower. Config Pools let you do just that, allowing for a personalized touch in the chaos of currency trading.
Let’s take a whimsical dive into the settings that could make or break your next beach holiday fund.
Basic settings
Naming Your Financial Steed
First things first, christen your Config Pool with a name that sings to you. Perhaps ‘Fortuna’s Favor’ or ‘Digital Gold Digger’ — something that sparks joy each time you gaze upon your dashboard.
Enable/Disable
The switch here is akin to the on/off button of the config pool.
Leave it ‘on’ to let the magic flow, or ‘off’ if you feel like pausing the alchemy.
Currencies using this pool
Here’s where you pick your players. Choose the digital coins that will dance to the tunes of your Config Pool. Will it be the famed Bitcoin, the illustrious Ethereum, or perhaps a wildcard from the crypto realms?
Buy Settings:
Choose your buying style — are you a ‘market order’ maverick, ready to seize the coin at the drop of a hat? Or a ‘limit order’ strategist, waiting for the perfect moment to pounce?
Market Order:
The Quick Draw Imagine you’re in a duel with the markets, and speed is of the essence. A market order is your weapon of choice when you need to execute a trade, pronto! It’s the equivalent of walking into a shop and buying at the current price, no haggling. You get your crypto coins instantly, but here’s the catch: the price might be a tad higher, especially in a market that’s as volatile as a caffeinated squirrel.
It’s perfect for traders who prioritize execution over price precision.
Limit Order:
The Sniper’s Aim Now, if you’re the patient spider in the web of crypto, a limit order might just be your style. You set your price, lie in wait, and only strike when your target hits. It’s like setting a trap for the perfect price — you might wait longer for the trade to execute, but you could snag a better deal.
This is ideal for traders who prefer precision and are willing to play the waiting game.
The decision hinges on market conditions and your trading philosophy.
If you’re riding the waves of a news breakout, a market order ensures you’re on the board swiftly. But if you’re the “plan and execute” type, watching the tides with a calculating eye, then a limit order allows you to catch the wave at just the right moment.
In essence, the choice between market and limit orders hinges on your trading tempo and appetite for risk. Like a maestro conducting an orchestra, it’s all about timing and rhythm in the symphony of trading.
A Tick-Tock for Your Transactions
Set the countdown for how long a buy order can hang around before it’s shown the door. Time is money, after all.
The Cool-Down
Twist This toggle is like telling your bot to take a breather after a trade, so it doesn’t get overzealous and buy too much of the same coin.
Strategy
Your Secret Sauce Decide if you want to spice things up with a Strategy, customizing the Baseconfig’s wisdom for your Config Pool’s unique palate.
Trailing Stop-Buy:
The Sly Hunter Enable this feature to have your bot stealthily follow the price hike before pouncing on the buy button.
Here’s how a Trailing Stop-Buy order can be strategically used:
Imagine the price of an asset is rapidly falling. You believe this is a temporary setback and expect a sharp rebound — a V-shape recovery.
As the price is falling, you set a Trailing Stop-Buy order with a trailing percentage — say 2%. This means your order will trigger a buy if the price rises 2% from its lowest point, wherever that might end up being.
The price hits a bottom and starts to rise sharply, signaling the recovery phase of the V-shape. As it rises, your Trailing Stop-Buy moves up with it, maintaining the 2% distance from the rising price.
If the price recovers to a point where it has increased by 2% from its lowest point during the drop, your Trailing Stop-Buy order is triggered. You buy the asset at this new price, catching the recovery early because of the trailing mechanism.
A Trailing Stop-Buy can help you enter the market just as the turnaround is confirmed, hopefully allowing you to capitalize on the rest of the upward trajectory.
Sell Settings:
Take profit at
Here you’ll define your victory lap: the profit percentage at which you’d like to exit a trade. Set a number that makes you do a happy dance, and once your position hits that sweet spot of profit, your bot will spring into action and execute a sell order. This goalpost is adjustable, so you can fine-tune it within your Config Pools to match your changing strategies or mood swings.
Order type
Decide how your bot should wave goodbye to your assets. A market order will ensure a swift exit — think of it as the fire escape of selling — it’s immediate but could mean leaving money on the table or taking a hit if the market is playing hard to get. A limit order, on the other hand, is like putting your asset on display until the right buyer comes along, willing to meet your price — it may take time, but you could get a better deal. This setting, too, is a hand-me-down from your Baseconfig but is not set in stone; tweak it as you see fit.
Max open time sell
Here’s where you clock the patience of your sell order. Specify how long your bot should wait with its ‘For Sale’ sign before calling it quits on an order. A short fuse means your bot gets back in the trading game quickly after an aborted sell, but beware — it might also mean getting only a slice of the pie rather than the whole banquet. The starting countdown is what you originally told your Baseconfig, but feel free to adjust the timer in your Config Pools for a different tempo.
Sell strategy
Flip this switch if you want to sell like a grandmaster chess player. When your technical analysis (TA) strategy gives the nod, your bot will make its move and execute a sell. Just keep in mind, this could sometimes mean folding your hand even when the chips are down. If you’ve previously mapped out a Sell Strategy in your Baseconfig, those settings will appear here by default. But don’t fret; you’re the captain here and can adjust the course for each Config Pool.
Only sell in profit
Activate this feature to ensure your bot only says farewell to your assets when they’re in the green. If your strategy or a TradingView Alert hints it’s time to sell, this setting ensures only profitable positions leave your portfolio. It’s like having a quality control check before your goods go to market. Engage this, and it takes precedence, sidelining other sell directives.
Sell in profit percentage
Set the bar for when strategy-based sales should kick in. Determine the minimum profit percentage that makes you tip your hat and let a position go. If your gains haven’t hit this mark, your bot will hold off, waiting for the tide to rise.
Stop-Loss
Stop-Loss settings are predefined rules set to sell an asset when it reaches a certain price to limit potential losses.
Enable
Give your bot the green light to implement a Stop-Loss, which acts as your financial guardrail. It’s a pre-set boundary to prevent significant losses by automatically selling off your position if the market turns south. If you’ve previously set up Stop-Loss parameters in your Baseconfig, they’ll be your starting point here. Yet, you’re free to customize them to each Config Pool’s strategy.
Stop-Loss Percentage
Here’s where you specify your risk tolerance. Input the percentage drop that triggers a Stop-Loss sale, like a circuit breaker. Say you can stomach a 2.5% dip — plug that figure in. This way, if your asset takes a 2.5% hit, your bot will jump into action and sell, helping you to step off a sinking ship early.
Trailing Stop-Loss
This toggle introduces a moving Stop-Loss, one that shadows the price as it climbs and sets a new floor along the way.
Setting the Trailing Percentage
Determine how far you want the price to fall from its peak before your bot acts. This sets a dynamic threshold that moves with the price, securing gains as they accumulate.
Arm Trailing Stop-Loss
Decide the profit percentage that must be reached before your Trailing Stop-Loss kicks in. This ensures that you’re not just breaking even, but covering fees too. For instance, input 1% to make sure the Trailing Stop-Loss activates only when you’re in the black by at least this margin.
Use Trailing Stop-Loss only
With this switch, you tell your bot to rely solely on the Trailing Stop-Loss to decide when to sell, bypassing other sell signals. It’s a commitment to letting your profits run and cutting losses based on the asset’s highest achieved price.
Reset Stop-Loss after failed orders
Toggle this to reset your Stop-Loss after an order is canceled — due to either not being filled or lingering past its time limit. It’s like saying, “Try, try, try again,” to your bot, ensuring it always has a safety measure in place.
Only sell with profit
Lastly, this toggle ensures your bot plays it smart — it checks if selling via Trailing Stop-Loss will lock in profits. If a proposed sale doesn’t end in green, your bot will hold off, avoiding a loss-triggered sale.
Auto Close
Enable
Activate this feature to implement a systematic approach to your trading strategy. Traders and miners often find it beneficial to synchronize their positions and have the option to automatically exchange them for a more stable currency. It’s important to note that, when enabled, all positions will be liquidated after a set time, regardless of their profitability. If you have the ‘Auto Close’ feature enabled in your Baseconfig, these settings will be automatically applied here. However, you have the flexibility to fine-tune and customize them in the ‘Config Pools’ section.
Close position after X time open
Specify the time duration before your trading bot initiates the automatic liquidation of all positions.
Dollar-Cost Averaging (DCA)
Dollar Cost Averaging
Turn on this feature to incorporate Dollar-Cost Averaging into your trading strategy. If you have DCA enabled in your Baseconfig, the settings will be inherited here. However, you have the freedom to adjust and refine them in the ‘Config Pools’ section.
Order Type
Select the preferred order type for your trading bot’s buy orders. Market orders execute immediately but may result in reduced profits or increased losses, especially during periods of low market volume or high volatility. Limit orders allow you to specify a particular price, but take longer to fill.
DCA after X time open
Define the timeframe after which your bot will create a DCA order for your position. This feature is particularly advantageous for beginners looking to accumulate Bitcoin or another cryptocurrency over an extended period.
DCA max retries
Set the maximum number of DCA orders your bot can generate for a specific currency. Keep in mind that setting this number too high could lead to higher losses, especially if used as a risk management tool against underperforming positions.
DCA set percentage trigger
Specify the percentage by which the price must fall before your bot initiates a new DCA order. Enter a positive value. This can serve as an alternative to shorting or a stop-loss strategy. It’s important to note that, after a new position is created or merged following your DCA order, the price needs to decrease by the configured DCA percentage before it triggers again. In some cases, the DCA action may conclude later than expected due to unfilled limit orders. Consider using market orders for a faster execution.
DCA buy immediately
Toggle this option to enable immediate DCA purchases when the specified percentage loss threshold is reached. Please be aware that the bot will make purchases without considering your overall strategy, potentially leading to unfavorable timing.
DCA Order Size
Select the desired order size from the available options, each with varying levels of risk:
- Double Down: This option initiates a DCA order with the same amount as your total open positions for a specific currency.
- Triple Down: Opt for this choice to open a DCA order twice the size of your current open positions for a particular currency.
- Custom Percentage: Define your preferred percentage to determine the DCA order size.
With these settings fine-tuned, your Config Pool is now a reflection of your financial flair and wisdom.
Onward to prosperity!
3. Signals:
The Prophets of Profit
The Signals tab is akin to consulting an oracle, where you receive prophecies of profits from Marketplace seers. But remember, once you’ve set sail on a signaler’s advice, your ship won’t change course even if the winds of your Baseconfig or Config Pools shift.
What are Signals?
Have you ever envisioned a scenario where an experienced third-party analyst could step in to guide your trading decisions with precision and expertise?
With Signals by Cryptohopper, that vision becomes a reality. This innovative feature empowers you with the advantages of a third-party analyst’s insights, all while safeguarding your personal data.
Let the analyst provide strategic guidance to your trading bot, suggesting which currencies to buy and when to do so.
Unlocking the Potential of Trading Signals
Cryptohopper has gone the extra mile to enable signalers to deliver highly customized trading signals.
- Tailored Take Profit
- Personalized Stop Loss Percentage
- Dynamic Trailing Stop Loss Percentages
In essence, Signals by Cryptohopper offers you a sophisticated and personalized approach to cryptocurrency trading, harnessing the expertise of third-party analysts and providing you with the tools to shape your trading strategy according to your unique preferences and financial aspirations.
4. Triggers:
Your Magical Traps Triggers are the tripwires you set up to catch or avoid surprises. A price drop here, a market tumble there, and voila! Your bot knows to stop buying or take other clever actions to protect your treasure.
Understanding Triggers
Triggers serve as the building blocks of your trading strategy, allowing you to create safety mechanisms or automate specific actions for your trading bot. They offer the flexibility to set conditions that trigger responses, helping you navigate the complexities of cryptocurrency markets effectively. One practical example is the ability to establish a Trigger that can halt your bot’s activities when Bitcoin (BTC) experiences rapid price surges, a valuable tool for traders who prefer to hedge against BTC’s volatile movements.
Exploring Trigger Functionality
Triggers offer an array of possibilities to enhance your trading strategy.
It’s important to note that the following examples are illustrative and should be viewed as guidelines. The dynamic nature of cryptocurrency markets means there are no universally applicable “golden settings.”
Your ideal settings will depend on the specific market conditions and your unique trading strategy.
Example 1: Trading with the Trend (EMA Triggers)
Trading in alignment with prevailing trends is a fundamental approach, especially for conservative day traders and scalpers. To identify the broader trend, trend-following indicators on longer timeframes can be employed. An Exponential Moving Average (EMA) Trigger is a valuable tool in this context. By utilizing EMA crossovers, such as the intersection of a fast 10 EMA and a slower 20 EMA, you can enable or disable buying actions based on the favorability of the trend.
How To Create an EMA Trigger:
Select indicator(s):
EMA
Trigger when EMA:
Signals a buy
EMA Short Period:
10
EMA Long Period:
20
Select action(s):
SET BUYING STATUS
Set status:
Enabled
Cooldown period:
Configure a personalized cooldown period; let’s use a 5-minute interval as an illustrative example.
Be sure to hit that “Save” button — a small action with a big impact!
Now, celebrate your completed Bullish EMA Trigger— you’ve just unlocked a powerful tool for your trading arsenal!
Example 2: Adapting Templates to Market Conditions
In this scenario, we establish two Triggers: one for bullish market conditions and one for bearish market conditions. This setup allows your trading bot to dynamically adjust its behavior in response to market conditions.
Here’s an illustration of the bullish Trigger:
Name:
Bullish Template
Enable:
On
Select Exchange:
Kraken
Select Market:
BTCUSDT
Select candle size:
1day
Select indicator(s):
EMA
Trigger when EMA:
Signals a buy
EMA Short Period:
10
EMA Long Period:
20
Select action(s):
LOAD TEMPLATE
Load template:
Bullish Template
Overwrite triggers:
Do not overwrite/reset triggers
Cooldown period:
15 min
Be sure to hit that “Save” button
Having explored the trigger for an upward movement (bullish), let’s now turn our attention to the opposite scenario.
And here’s an illustration of the bearish Trigger:
Name:
Bearish Template
Enable:
On
Select Exchange:
Kraken
Select Market:
BTCUSDT
Select candle size:
1day
Select indicator(s):
EMA
Trigger when EMA:
Signals a sell
EMA Short Period:
10
EMA Long Period:
20
Select action(s):
LOAD TEMPLATE
Load template:
Bearish Template
Overwrite triggers:
Do not overwrite/reset triggers
Cooldown period:
15 min
Be sure to hit that “Save” button
It’s crucial to note that, when configuring these Triggers, you should use the same indicator and trading pair on the same exchange for both the bearish and bullish Triggers. Diverging from this approach by employing different indicators or trading pairs may lead to Triggers being activated excessively.
Don’t venture into the wild just yet! Test your spells with a Paper Trading bot and use the Backtester to see how your strategies would have fared in the battles of the past.
5. Ensuring Correct Bot Setup: A Knight’s Check-Up
Your Cryptohopper bot is your steed in the joust of trading. The Troubleshooter is your squire, ensuring your armor has no chinks.
A quick visit to this handy tool can save you from a dragon’s fiery breath. And if you’re ever lost, our round table of support knights is just a chat bubble away.
And don't forget there’s a battalion of tools at your disposal:
- The Manual General with an Automated Army: Manually command your entry into battle but let your bot’s automated legions handle the selling.
- Strategy Designer: Mix indicators and concoct powerful strategies, or pick a battle-tested one from the Marketplace.
- Signals: Not sure when to strike? Let the signalers send you signals, the war drums that tell you when to charge.
- AI Strategy Designer: Let the artificial oracle sift through strategies and pick the one with the vision of victory.
- TradingView Alerts: Send messages straight to your bot to act on your behalf, a real-time messenger that never sleeps.
Understanding Subscriptions: Your Access to the Royal Arsenal
Each subscription — be it Explore, Adventurer, or Hero — grants you a single warhorse for the real-money battlegrounds and a wooden steed for practice jousts.
Monitoring Your Bot on the Go: Your Raven in the Sky
The market never sleeps, and neither should your vigilance. Use the Cryptohoppers mobile app to keep a raven’s eye view of your bot’s activities, ensuring you never miss a beat.
6. Conclusion:
Now you’re equipped with the secrets to turn the Cryptohopper into your personal gold-spinning gnome. Remember, in the world of automated trading, a well-set bot is a goose that lays golden eggs.
Don’t let hesitation hold you back. Seize the opportunity to make your financial dreams a reality. Set up your trading bot, trust in your skills, and let your wealth grow effortlessly.
Happy trading, brave adventurer!
