A comparison of different simple bots on spot for those wondering about “short” deals on spot. It’s not about gaining from the “short” deal itself but from the mindset to hold base and profit from its price changes.
This is a basic example and could surely be enhanced regarding its settings. But even like that it might be interesting to get started.
The idea would be to start with the same $ amount in e.g. four different sub-accounts. E.g., $100 in USDT for the long bots and in BTC for the “short” bots each.
Just for information, your first link is not showing any bot but the settings are no hard to find looking at the other bots.
Are you planning to do some backtests, opening these bots and show the results later or just having a discussion on what would be the best option?
To improve the settings, it may be worth taking the (S-10) DCA by Simultaneous Deals made by @Rossano and compare the results obtained with each one of these options. Also something that would be super nice, is the possibility of doing a multi-bot backtest for these kind of situations where you want to profit from price changes and you are opening a short and a long at the same time.
The best option is to run all 4 together - performance are not important when comparing against each others because they perform best in turn. If you run all 4 when longs wait shorts work and viceversa
A few additional thoughts regarding Trading Strategies on the Crypto Spot Market
When the Base Currency is Strengthening:
If you expect the base currency (the first currency in the trading pair) to increase in value, consider using a strategy similar to “short selling” on the spot market.
This involves holding the base currency and selling portions of it as the price rises. By selling at higher prices, you effectively average your selling price upwards.
As the price peaks and begins to reverse, you can buy back the base currency at a lower price, thereby increasing your overall holdings.
This approach allows you to accumulate more of the base currency while it is gaining in value, ultimately maximizing your holdings and benefiting from its price appreciation.
When the Quote Currency is Strengthening (or the Base Currency is Weakening):
If you expect the quote currency (the second currency in the trading pair) to strengthen, meaning the base currency is weakening, focus on executing long trades.
In this scenario, use your base currency to buy more of the quote currency as the base currency declines in value.
By doing so, you accumulate more of the quote currency at lower prices. If the market eventually reverses and the base currency strengthens again, you can convert the quote currency back into the base currency at a favorable exchange rate.
This strategy helps you increase your holdings of the quote currency, which is appreciating, while taking advantage of the temporary weakness in the base currency.
