Binance trading bot
ENHANCE YOUR TRADING EXPERIENCE
Have you ever dreamed of growing your capital while you sleep? With the assistance of our Binance trading bot, that dream could now become a reality. Our unique software solution provides you the opportunity to benefit from the volatility on the world’s leading cryptocurrency platform.
READY TO BECOME A BINANCE BOT EXPERT?
Our own journey to success with Binance bots was one of trial and error. We spent over 4 years developing a working Binance trading bot strategy and only then could we transform that understanding into useful IT products and services. To ensure your learning journey is less bumpy than Oxido Solutions’, we have created a 10-point content program of key things you need to know about this fascinating topic at this stage.
BINANCE SPOT VS FUTURES
Apart from being a platform for NFT enthusiasts, Binance consists of two exchanges: Binance Spot and Binance Futures. Choosing on which exchange your Binance bot should operate is vital, and this requires understanding the differences between Binance Spot and Binance Futures. We’ve jotted down a few key points for your consideration.
However, as an IT firm, we’re not able to guide you on which platform best fits your needs and goals. We also can’t verify whether you’re allowed to trade on these platforms. As a result, we strongly advise you to do your own research and, if needed, speak with a financial expert.
|Contract types||Spot||Coin-M, USD-M, options|
|Average daily trading volume||USD 7.5B||USD 48.7B|
|Risk management features||Less||More|
OUR BINANCE BOT EXPERT ON PLATFORM CHOICE
“Since the inception of Binance, I have been involved in developing trading bots on this platform. I have built bots for both Binance Spot and Binance Futures, which has given me a deep understanding of the conditions where your Binance bot would perform best on either exchange.”
“This exchange only supports Binance trading bots for spot trading, which means your bot can create buy and sell opportunities for cryptocurrencies only in a rising market. If you’re betting on the future of crypto, Binance spot bots could also serve as a tool for a long-term buy-and-hold strategy. Personally, I use the Binance spot bot of Oxido Solutions to generate buy opportunities for Bitcoin with the stablecoin USDT at the most favorable price based on my predefined selection criteria. I then use this Bitcoin as collateral for our Coin-M strategy on Binance Futures, which aims to accumulate more Bitcoin over time.”
“Unlike Binance Spot, Binance Futures allows you to use trading bots that can help grow your capital even when the market is trending downwards. This is done through the use of futures contracts, which enables you to speculate on the future price movement of an underlying asset based on predefined selection criteria, regardless of whether the price goes up or down. Additionally, unlike spot trading, you only have to expose a fraction of your capital to the market, as a well-configured trading system can borrow the remaining capital under relatively favorable market conditions.”
DESIGN APPROACH BINANCE TRADING BOTS
The design of a Binance trading bot can be approached in three ways. It can be designed to produce buy and sell opportunities based on technical analysis, fundamental analysis, or a combination of both. To determine which approach suits you best, we have outlined the differences between the technical and fundamental approach.
Analysis of quantitative data based on technical indicators.
Frequent changes: suited for short and long term investing.
Analysis of qualitative data with fundamental indicators.
Less frequent changes: more suited for long-term investing.
A Binance trading bot for BTC USD-M uses technical indicators such as RSI, MACD and Bollinger bands. It analyzes the chart, market data and other quantitative data to identify trends and patterns based on predefined parameters and then generates a trading opportunity.
A Binance bot analyzes the underlying fundamental data of a cryptocurrency coin of a blockchain company. This includes product news, industry trends, and management data based on predefined parameters and then produces a buy or sell opportunity.
EXAMPLE TA & FA
A Binance bot designed based on both a technical and fundamental approach could use the best of both worlds. For instance, if you are running a USD-M strategy on Ethereum, it could be configured to not only detect a buy opportunity when the price is breaking out of the top range of the Bollinger Band and other technical indicators. Another criterion is that there should not be any negative news on social media or any other fundamental indicator turning negative that day about Ethereum.
BINANCE BOT DATA
Data stands as a cornerstone of any Binance trading bot. To put a winning strategy into play, you’ll need access to a complete and accurate set of data.
This boils down to historical data, allowing you to check how your strategy would’ve played out in the past, and real-time data, which is key to achieving profitable results in live trading.
Historical price data
REAL-TIME PRICE DATA
HISTORICAL TRADING VOLUME
REAL-TIME TRADING VOLUME
ORDER BOOK DATA
BINANCE BOT CODING SKILLS
There are platforms and providers that allow you to purchase a pre-built Binance trading bot and customize one to your liking. In such instances, you do not necessarily require any knowledge of programming languages, but it is useful to understand how the bot technically operates. On the other hand, if you want to develop your own Binance bot, you will need to master programming languages. These languages are commonly categorized into closed-source and open-source categories. Closed-source languages are specifically designed for use on a particular platform, whereas open-source languages can be used across multiple platforms.
Pinescript is a proprietary programming language based on C, offered as one of the tools by the popular charting platform TradingView for developing a Binance bot. It allows you to create your own strategies and technical indicators.
MetaTrader5 (MT5) is another widely-used closed platform for building bots. Developers can leverage the MT5 software kit, which is based on the programming language python, to create Binance bots and indicators tailored to their trading strategies.
If a closed platform doesn’t have the necessary tools you need to create a Binance trading bot, you have the option to develop a custom strategy from scratch or based on open-source libraries. Python offers the most options for this.
BACKTEST BINANCE BOT
Before your Binance bot strategy can go live, it needs to go through rigorous testing. A necessary tool for this is backtesting software. A backtest is a simulation of how a trading bot would’ve performed using historical market data. Oxido Solutions has had good runs with the following backtesting systems:
|Accessibility||Beginner and advanced||Advanced|
|Level of customization||High||Very high|
HISTORY OF BINANCE BOTS
1949: Introducing rule-based trading
Have you ever wondered how the Binance bot came into existence? Let’s take a trip back to the first half of the 20th century and explore some historical events. In 1949, Richard Donchian launched Futures Inc, the first-ever trading rule-based fund, which utilized predetermined rules to generate actual trading buy and sell signals in the futures markets. This concept was ahead of its time and employed mathematical systems based on moving averages of commodity market prices. Despite the lack of internet support, the team behind it manually charted the markets using data from ticker tapes. This was the foundation for rule-based trading and paved the way for the Binance trading bot and other trading bots that we use today.
Mary Max Markowitz, Ed Thorp and Michael Goodkin created a system for arbitrage trading using trading bots. This served as the starting point for the development of the trading bot systems that are currently known.
In the 1970s, the world of trading bots took a significant step forward with the launch of Nasdaq. This US-based exchange provided fully automated trading, which was a revolutionary concept at the time.
The use of computers and technology in trading became more widespread and traders began to tap into the power of bots to analyze market data and generate trading opportunities.
Bitcoinica and Mt. Gox, two cryptocurrency exchanges that are no longer operational, were among the first to offer support for cryptocurrency bots and automated crypto trading solutions.
With the launch of Binance, the platform enabled the development of Binance bots for spot pairs. Jarno seized this opportunity and created Oxido Solutions’ Binance spot bot in the same year.
The usage of trading bots is gaining popularity, with trading bots like the Binance bot, Bybit Bot, and OKX bots being involved in approximate 80% of all trades executed in the cryptocurrency market.
With the start of Binance Futures, we have released our first Binance bot designed for Coin-M and USD-M products. This enables our clients to receive trading opportunities for crypto-settled derivatives.
A rapid rise of artificial intelligence technologies like ChatGPT and BloombergGPT shapes the opportunity create more advanced AI-based Binance bots and other trading bots.
OUR BINANCE BOT SERVICES
At Oxido Solutions, we are experts in the technical design, IT development, and implementation of Binance bots for various trading strategies. Our in-depth knowledge of IT, trading, and the cryptocurrency market enables us to cater to a broad audience. From seasoned investors to junior and experienced traders. To ensure that we can help as many parties as possible, we have bundled our expertise into a range of IT services and products. Please note that due to regulatory compliance, some of our services may not be fully accessible to you.
If you qualify for our Binance signal service, you will have the opportunity to generate an extra income while you remain in control over your assets. All buy and sell opportunities are generated by our two unique trading bots: the Range Maker and the ATR.
Are you seeking a partner to collaborate on the IT aspects of a trading bot strategy? Or perhaps you need us to review the code of your existing crypto trading bot or underlying IT infrastructure? For all IT consultancy needs related to crypto bots, you can turn to Oxido Solutions.
Don’t worry if your trading bot isn’t performing as well as you had hoped. Sometimes, just one missing feature can be the key to unlocking its full potential. At Oxido Solutions, our technical indicators might be what you need to get your bot back on track and performing at its peak.
OUR BINANCE TRADING BOT STRATEGY
Developing a crypto trading bot strategy requires diverse knowledge and experience. Do you want to avoid the hassle of developing and maintaining your own Binance bot strategy? Consider accessing the Binance trading strategy of Oxido Solutions as it includes a ton of ground-breaking features to increase your chances of success in the cryptocurrency market. Here’s what sets our trading strategy apart:
Our trading approach involves following the direction of the market trend, which is called a trend-following strategy. We hold the believe that if a particular asset is moving in a specific direction, it’s more probable that it will continue moving in that direction than to suddenly reverse. This approach allows us to capitalize on both upward and downward market trends. To assist us in identifying and tracking these trends, our crypto trading bots use technical analysis and artificial intelligence.
3 risk levels
Our Binance trading strategy accommodates three risk profiles: low, medium, or high-risk, correlating to risk levels of 2%, 4%, and 6% of the trading capital per trade, respectively. Please be aware that slippage, which is the difference between the expected and actual trade execution price, has not been accounted for. While the low-risk profile may yield lower profits, it also results in smaller drawdowns, offering a more conservative approach to Binance bot trading.
The Range Maker is a trend-following algorithm that Jarno developed in 2017, and it was made available to the public two years later. We believe that many trend-following algo traders use Bollinger Bands and other standard methods to calculate the trading range, which can make them susceptible to market maker manipulation. The Range Maker, however, calculates the trading range in a unique manner. When combined with other customized features, this results in consistently stable performance.
The Average True Range (ATR) algorithm is a trend-following Binance trading bot that was developed in 2020 to operate alongside the Range Maker. It reacts more quickly to minor trend movements and outperforms the Range Maker on shorter time frames. By combining the ATR with the Range Maker, we achieve improved overall performance on a monthly basis as they provide a hedge for each other. As such, our Binance trading bot strategy is better equipped to anticipate changing market conditions.
The chop filter is a technical indicator that could be considered a true game-changer, as it solves one of the biggest challenges in our industry. Trend-following strategies often excel during periods of strong trends, but may struggle during sideways price action. The chop filter is able to measure the strength of the market and respond accordingly. When the market’s trend is weak, it ensures that our algorithms don’t take a position. This has resulted in a reduction of up to 50% in the drawdown of our strategy.
One of the largest risks of trend-following trading strategies is over-optimization. This risk emerges when strategy parameters are tuned so closely to past market data that the strategy becomes excessively specialized and performs poorly on new, unseen data. This issue can happen when traders constantly adjust the strategy parameters to fit historical data perfectly. To mitigate this, our strategy includes an auto-optimization function that adjusts the algorithm parameters in line with prevailing market conditions.
BINANCE FUTURES BOT
Oxido Solutions has developed a Binance futures trading bot capable of generating quality buy and sell signals for Binance Futures. This powerful tool could be your ticket to generating an extra income stream on the leading cryptocurrency derivatives exchange.
To use the Binance trading bot, you need to subscribe to our signal service for Binance Futures. You will then receive buy and sell signals on your Binance account. These signals can be automatically converted into orders with your permission. Here’s how it works: the Binance bot creates a trading opportunity, sends it to our Alpha Shifter middleware, which then forwards the information to your Binance account. Upon your authorization, Binance will automatically convert these signals into orders. You keep control over your funds and can disable the Binance trading bot at any time by disconnecting the API connection.
Our Binance Futures bot focuses exclusively on creating buy and sell signals for Bitcoin and Ethereum Futures trading pairs. Why? These pairs are renowned for their high liquidity – a critical factor for effective trading. Plus, the vast amount of historical price data for these pairs allows us to perform extensive backtesting, ensuring the reliability of our Binance trading bot. In fact, our backtesting showed that our Binance Futures bot has been performing excellently, even before we started collecting live data in 2020.
The Binance bot supports generating opportunities for perpetual futures, a derivative product that allows speculation on future asset prices without expiration dates, unlike traditional futures contracts. There are two types: USD-M Futures and Coin-M-Futures. If you prefer earning more USD Tether stablecoins instead of Bitcoin or Ethereum, choose USD-M Futures and provide USDT for our signal service for Binance Futures. Alternatively, for using Bitcoin or Ethereum as collateral and accumulating more of them, opt for Coin-M-Futures.
Our Binance trading bot is designed to create opportunities which incorporate isolated margin, a feature that helps you manage the risk involved with each individual trade. Think of it as if you were setting aside a specific amount of money for different purchases. With isolated margin, you allocate a certain amount of funds for each trade, and then only use those funds for that specific trade. This way, if one trade doesn’t perform well, it won’t impact your other trades.
OUR SIGNAL SERVICE PLANS
Ready to make a move? With the Binance signal service of Oxido Solutions, you can receive reliable trading signals to help you earn an additional income on the most popular cryptocurrency exchange. You can receive the signals by email, Telegram, Binance API or any other preferred channel. Please note that as a non-financial service provider, our signals are not customized, and all subscribers receive the same signals. We also do not execute orders on your behalf. We trust our Binance trading bots and are excited to offer you a free 14-day trial. If you are happy with the signals, you can upgrade to a paid subscription with us.