Home Insights Introduction to Gunbot

Introduction to Gunbot

by Matthew Harris

When it comes to trading – speed and automation are almost a prerequisite. Especially when it comes to cryptocurrency.

Gunbot caught our attention recently because it’s a state of the art trading bot that works on both computers and servers. However, the claims by Gunbot to be able to “generate profits by automatically executing your trading strategy,” as well as provide more consistent results really peaked our interest.

In an attempt to help you find the best of the best industry tools, over the next few weeks we’ll be setting up and testing Gunbot. We’ll publish a series of articles on our findings so if you have any questions or want us to focus on something specific, please comment below or reach out to matthew@cryptotradernews.com.

The Basics

In order to ensure that your trading API secret key stays private, Gunbot only runs on your local computer or server (Windows, Mac, Linux, and ARM). This also helps ensure that no one can monitor or influence your trading. The recommended system specs are at least 2 GB RAM, 10 GB of free disk space, and at least a 64-bit CPU with a stable broadband connection.

We found that licensing for Gunbot is actually pretty cool – you purchase their special GUNTHY tokens which determines the level of license that you receive. You’re also free to run multiple instances across multiple platforms and devices.

Installation and setup was pretty straightforward — the program runs in a terminal window and you control it through a browser interface. However, learn from our mistake.

On our first attempt, we forgot to save the Bittrex API secret key, the first exchange comes pre-configured, so we had to contact Gunbot Support to reset with a new API key. Support was really easy to deal with and after that, everything was up and running.

First Impressions

We really like that you can connect with multiple exchanges and that there are tons of trading strategies available (which we’ll be analyzing later) that are divided into three groups — indicator based, priced action based and black box.

Indicator strategies strictly trigger trades based on the indicator they are named after (ADX, ATRTS, bb…) and can be combined. These strategies allow very fine tuning to personalize to your heart’s content.

Price action based strategies, namely PingPong (PP) and Trailing Stop Stop Loss (TSSL), only work with bid/ask prices, disregarding the lag that indicators might bring into any strategy. PP is great for ranging markets, where the bot will just buy and sell when set prices are reached or exceeded. TSSL is just pure price trailing, this is especially powerful for selling assets because usually when users want to take profits, they are not really looking at indicators, they just want to sell when price peaked.

On the other hand, the blackbox strategies are for newbies. They hardly require user configuration, trade frequently and can give great results during sideways or bullish markets.

With Gunbot, everything is configured based on the trading pair. Obviously, you can only trade pairs supported by the exchanges that you have connected – another thing we learned the hard way 😉

A Little Advice For Gunbot Users

When it comes to choosing which pairs to trade, there are a few things we thing you should keep in mind.

  • Don’t trade coins you’re not wanting to HODL for a longer time.
  • Focus on top volume trading pairs, this is especially useful on lower volume exchanges where the bottom volume pairs are often completely useless for bot trading because there is no volume to absorb trades.
  • Don’t start trading anything that is even close to it’s all time high rate.
  • Stay away from low satoshi valued pairs, like DOGE.
  • Look for coins that have at least 1% difference between their daily high and low. Without this minimum volatility, it’s extremely difficult to successfully trade it using a bot.
  • Don’t believe 99.9% of so called “signals.”

Over the next few weeks we’re going to take a deep dive into Gunbot, providing in-depth reviews of the different strategies and how to get the most out of them. Again, if you have any questions or would like us to explain a certain strategy, be sure to reach out to us below.

If you haven’t already obtained Gunbot and you want to follow along with us as we test it out, or you want to start using it on your own, you can get your license for this powerful, easy to use trading bot at a 50% discount on their website. You can also learn more about Gunbot and even check out a Live Demo.

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