Bybit trading bot
BOOST YOUR TRADING WITH THIS POWERFUL TOOL
Have you ever thought about your money working for you, even when you’re not actively managing it? With our Bybit trading bot, you’re taking a step in the right direction as it can assist you in generating high-quality buy and sell opportunities in the crypto market. This allows you to have more time for the things that truly matter to you.
READY TO BECOME A BYBIT BOT SPECIALIST?
Our experience with Bybit trading bots has been a journey of learning and refining. It took us around 1 year to develop an effective Bybit trading bot strategy, which we have now transformed into valuable IT products and services. To make your learning process smoother, we have curated a content program highlighting the 10 key things you need to know about this exciting subject.
BYBIT SPOT VS DERIVATIVES
Bybit consists of two exchanges: Bybit Spot and Bybit Derivatives. Deciding which exchange is suitable for your Bybit bot is important, and it requires understanding the distinctions between Bybit Spot and Bybit Derivatives. We’ve provided some key points for you to consider.
However, as an IT company, we are unable to offer advice on which platform is best for you or determine if you have authorization to trade on these platforms. We highly recommend conducting your own research and seeking guidance from a financial expert if needed.
| SPOT | DERIVATIVES | |
| Leverage trading | No | Yes |
| Contract types | Spot | BTC-USD-SWAP, BTC-USDT-SWAP |
| Average daily trading volume | USD 0.7B | USD 7.5B |
| Risk management features | Less | More |
| Trading fees | Higher | Lower |
| Hedging | Not supported | Supported |
| Trading pairs | 280 | 214 |
OUR BYBIT TRADING BOT EXPERT ON PLATFORM CHOICE
“Since the beginning of Bybit, I have been actively involved in developing trading bots specifically for this platform. I have created bots for both Bybit Spot and Bybit Derivatives, which has provided me with a comprehensive understanding of the optimal conditions for your Bybit bot to thrive on either exchange.”
Bybit spot
“This exchange only supports Bybit trading bots designed for spot trading, enabling your bot to generate buy and sell opportunities for cryptocurrencies in a bullish market. If you have confidence in the future of crypto, Bybit spot bots can also serve as a tool for a long-term buy-and-hold strategy. Personally, I use the Bybit spot bot of Oxido Solutions to identify favorable buying opportunities for Bitcoin using the stablecoin USDT, based on my predefined selection criteria. I then use this Bitcoin as collateral for our Bybit Inverse contracts strategy, which aims to accumulate more Bitcoin over time.”
Bybit Derivatives
“In contrast to Bybit Spot, Bybit Derivatives allows you to use trading bots that have the potential to increase your capital even during a downtrend in the market. This is achieved through the use of futures contracts, which allow you to speculate on the future price movement of an underlying asset based on predefined criteria, regardless of whether the price goes up or down. Furthermore, unlike spot trading, you only need to allocate a fraction of your capital to the market, as a well-configured trading system can borrow the remaining capital under favorable market conditions.”
DESIGN APPROACH BYBIT TRADING BOTS
When designing a Bybit trading bot, there are three main approaches to consider. You can choose to base it on technical analysis, fundamental analysis, or a combination of both. To help you determine which approach is most suitable for you, we have highlighted the key differences between the technical and fundamental approaches.
TECHNICAL ANALYSIS
FUNDAMENTAL ANALYSIS
FOCUS
Analysis of quantitative data based on technical indicators.
Investment type
Frequent changes: suited for short and long term investing.
Focus
Analysis of qualitative data with fundamental indicators.
Investment type
Less frequent changes: more suited for long-term investing.
EXAMPLE TA
A Bybit trading bot for Bybit Derivatives 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.
EXAMPLE FA
A Bybit bot analyzes the fundamental data of a cryptocurrency coin from a blockchain company. This includes product news, industry trends, and management data based on predefined parameters and then creates a buy or sell opportunity.
EXAMPLE TA & FA
A Bybit bot that combines both technical and fundamental approaches can leverage the strengths of each method. For example, when running a Bybit Inverse Contracts strategy on Ethereum, the bot can be programmed to identify buy opportunities based on technical indicators like the breakout of the top range of the Bollinger Band. Additionally, it can consider fundamental factors such as monitoring social media for any negative news or any other indicators signaling negative sentiment about Ethereum on that day.
BYBIT BOT DATA
Data plays a crucial role in the effectiveness of a Bybit trading bot. Having access to comprehensive and reliable data is essential for deploying a successful strategy.
There are two types of data to consider: historical data and real-time data. Historical data enables you to analyze how the strategy would have performed in the past, providing valuable insights. On the other hand, real-time data is vital for achieving profitable performance during live trading. Having up-to-date information is crucial for making informed decisions and adapting to current market conditions.
Historical price data
REAL-TIME PRICE DATA
HISTORICAL TRADING VOLUME
REAL-TIME TRADING VOLUME
ORDER BOOK DATA
TRADING FEES
EXCHANGE DATA
TECHNICAL INDICATORS
FUNDAMENTAL DATA
BYBIT TRADING BOT CODING SKILLS
When it comes to acquiring a Bybit trading bot, you have options. Some platforms and providers offer pre-built bots that you can purchase and customize according to your preferences. In such cases, you don’t necessarily need programming language knowledge, although it’s helpful to have an understanding of how the bot operates. On the other hand, if you want to develop your own Bybit bot, programming language mastery is required. Programming languages can be categorized as closed-source or open-source. Closed-source languages are designed for specific platforms, while open-source languages can be used across multiple platforms. Understanding the differences between these language categories can guide you in choosing the right approach for your Bybit bot development journey.
Closed-source
Open-source
Pinescript
Pinescript is a unique programming language based on C, exclusively provided by TradingView, a widely-used charting platform, for developing Bybit trading bots. With Pinescript, you have the power to design your own strategies and create custom technical indicators that suit your trading preferences on Bybit.
MetaTrader5
MetaTrader5 (MT5) is a popular closed platform that many developers use to build Bybit trading bots. With the MT5 software kit, which utilizes the python programming language, developers can create customized Bybit bots and indicators that align perfectly with their unique trading strategies.
Python
If a closed platform lacks the essential tools for developing a Bybit trading bot, you have the flexibility to create a strategy either from scratch or using open-source libraries. Python is a versatile programming language that provides a wide range of options for developing your own customized Bybit trading bot.
JavaScript
JavaScript is an open-source alternative that is relatively easy to learn. However, it may not be the most suitable option for Bybit trading bots that generate buy and sell opportunities for high-frequency trading strategies, such as arbitrage or market making.
BACKTEST BYBIT BOT
Before implementing a Bybit bot strategy in live trading, it is crucial to conduct thorough testing. Backtesting software plays a vital role in this process. Backtesting involves simulating how a trading bot would perform using historical market data. At Oxido Solutions, we have had positive experiences with the following backtesting systems:
| TRADINGVIEW BACKTEST | BACKTESTER | |
| Type | Closed-source | Open-source |
| Accessibility | Beginner and advanced | Advanced |
| Interface | User-friendly | Complex |
| Strategy development | Yes | Yes |
| Indicator development | Yes | Yes |
| Level of customization | High | Very high |
| Multi-timeframe analysis | Yes | Yes |
HISTORY OF BYBIT BOTS
1949: Introducing rule-based trading
Have you ever wondered about the origins of the Bybit bot? Let’s journey back to the first half of the 20th century and explore some historical events. In 1949, Richard Donchian introduced Futures Inc, the first-ever trading rule-based fund. This innovative fund used predetermined rules to generate real trading signals in the futures markets. It employed mathematical systems based on moving averages of commodity prices, a concept that was revolutionary at the time. Despite the absence of internet support, the team manually analyzed market data from ticker tapes. This pioneering approach laid the groundwork for rule-based trading and paved the way for the development of Bybit trading bots and other crypto trading bots.
Mary Max Markowitz, Ed Thorp, and Michael Goodkin played a pivotal role in the creation of arbitrage trading systems using trading bots. Their innovative work served as a significant milestone in the development of the trading bot systems we know today.
The 1970s marked an important era in the world of trading bots with the introduction of Nasdaq. This groundbreaking US-based exchange brought forth the concept of fully automated trading, revolutionizing the industry at that time.
As computers and technology became more prevalent in the trading world, traders started embracing the use of bots to analyze market data and uncover trading opportunities. This utilization of bots empowered traders with enhanced capabilities to navigate the financial markets.
Bitcoinica and Mt. Gox, two now-defunct cryptocurrency exchanges, were pioneers in providing support for cryptocurrency bots and automated crypto trading solutions. They played a key role in introducing these technologies to the crypto market.
When Bybit was introduced, it opened the doors for the development of Bybit bots specifically designed for spot pairs. Recognizing the potential, Jarno took advantage of this opportunity and created Oxido Solutions’ Bybit spot bot in the same year.
Trading bots such as the Bybit bot, Binance Bot, and OKX bots have experienced a remarkable surge in popularity, enabling them to be involved in approximately 80% of all trades executed in the cryptocurrency market, revolutionizing the way investors and traders engage with digital assets.
With the introduction of Bybit Derivatives, we have proudly unveiled a Bybit bot designed for USDT Perpetual and Inverse Contracts. This allowed our clients to seize trading opportunities for crypto-settled derivatives and expand their investment potential.
The meteoric growth of artificial intelligence technologies, such as ChatGPT and BloombergGPT, presents a promising opportunity to develop increasingly sophisticated AI-powered Bybit bots and other trading bots with enhanced capabilities and intelligence.
OUR BYBIT BOT SERVICES
At Oxido Solutions, we specialize in designing, developing, and implementing Bybit bots for different trading strategies. With our extensive expertise in IT, trading, and the cryptocurrency market, we cater to a wide range of parties, including seasoned investors, junior traders, and experienced traders. To serve our diverse audience, we offer a comprehensive range of IT services and products. However, please be aware that certain services may have regulatory restrictions that could limit accessibility.
Signal service
By qualifying for our Bybit signal service, you can unlock the potential to earn extra income while maintaining control over your assets. Our exclusive trading bots, the Range Maker and the ATR, will generate high quality buy and sell opportunities, ensuring you can make the most of your trading experience.
IT CONSULTANCY
Are you looking for a partner to collaborate on the IT aspects of your trading bot strategy? Or do you need assistance in reviewing the code of your existing crypto trading bot or IT infrastructure? For all your IT consultancy needs related to crypto bots, Oxido Solutions is here to help.
IT DEVELOPMENT
Our IT team consists of experienced traders who also have programming skills. We can assist you with the IT development of your bot using various programming languages, such as Python, TradingView, and JavaScript, depending on your specific requirements.
INDICATORS
If your trading bot is not meeting your expectations, there’s no need to worry. Often, a single missing feature can make a significant difference in unlocking its full potential. At Oxido Solutions, our technical indicators can provide that missing piece, helping you optimize your bot’s performance and achieve its maximum capability.
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OUR BYBIT TRADING BOT STRATEGY
Creating a successful Bybit bot strategy demands expertise and experience. If you prefer to skip the complexities of developing and managing your own bot strategy, consider accessing the Bybit trading strategy of Oxido Solutions as it includes lots of innovative features to enhance your chances of success in the cryptocurrency market. Here’s what makes our trading strategy stand out:
Trend-following
Our trading strategy revolves around following the market trend, known as a trend-following approach. We firmly believe that if an asset is moving in a particular direction, it’s more likely to continue in that direction than to abruptly reverse. This enables us to capture opportunities in both upward and downward market trends. To identify and track these trends effectively, our crypto trading bots uses technical analysis and artificial intelligence.
3 risk levels
Our Bybit trading strategy supports three risk profiles: low, medium, and high, corresponding to risk levels of 2%, 4%, and 6% of the trading capital per trade. Please note that the calculations do not account for slippage, which is the difference between the expected and actual trade execution price. The low-risk profile aims for smaller profits but also ensures smaller drawdowns, providing a more cautious approach to Bybit bot trading.
Range Maker
In 2017, Jarno created the Range Maker, a trend-following trading algorithm. Two years later, it was released to the public. Unlike many other algo traders who use conventional methods like Bollinger Bands to determine the trading range, we have taken a different approach. Our unique calculation method for the trading range, combined with custom features, ensures a consistently stable performance that is less susceptible to market manipulation.
In 2020, we introduced the Average True Range (ATR) algorithm as a complementary Bybit trading bot to work 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 enhance the overall performance of our strategy on a monthly basis, as they provide a hedge for each other. This integrated approach enables our Bybit trading bot to adapt to changing market conditions more effectively.
The chop filter is a ground-breaking technical indicator that addresses one of the major obstacles in our industry. While trend-following strategies tend to thrive in strong trending markets, they can face difficulties during periods of sideways price movement. The chop filter effectively measures the market’s strength and adjusts our algorithms accordingly. When the market’s trend is weak, it prevents our strategies from taking positions. This innovative feature has led to a decrease of up to 50% in our strategy’s drawdowns, improving its overall performance.
One of the challenges in trend-following trading strategies is the risk of over-optimization. This happens when strategy parameters are finely tuned to historical market data, resulting in poor performance when applied to new, unseen data. This problem arises when traders continuously fine-tune the strategy to fit the past data perfectly. To address this, our strategy incorporates an auto-optimization function that dynamically adjusts the algorithm parameters based on current market conditions. This ensures that the strategy remains adaptive and capable of delivering consistent performance in changing market environments.
BYBIT DERIVATIVES BOT
The Bybit derivatives trading bot of Oxido Solutions is able to generate high-quality buy and sell opportunities for Bybit Derivatives. This could help you generate an extra income on this top-tier cryptocurrency derivatives exchange.
Signal service
To receive buy and sell opportunities for Bybit derivatives, subscribe to our signal service for the Bybit trading bot. Our Bybit bot finds opportunities, sends them to a middleware layer, which then forwards them to your Bybit account for manual conversion into orders. Unfortunately, we cannot facilitate automatic conversion of these opportunities into orders as we are an IT company, not a financial institution. However, you can authorize Bybit to process the signals into orders via their API.
Trading pairs
Our Bybit Derivatives bot only creates buy and sell opportunities for Bitcoin and Ethereum Futures trading pairs. This is primarily due to their high liquidity, a crucial element for effective and efficient trading. Furthermore, the vast amount of historical price data for these specific trading pairs enables thorough backtesting, ensuring the reliability of our Bybit trading bot. For instance, even before we began gathering live data in 2020, our backtesting revealed that the Bybit derivatives bot had been performing strongly.
Perpetual Futures
The Bybit 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: USDT-Perp and Inverse. If you prefer earning more USD Tether stablecoins instead of Bitcoin or Ethereum, choose USDT-Perp and provide USDT for our signal service for Bybit Derivatives. Alternatively, for using Bitcoin as collateral and accumulating more of it, opt for Inverse.
Isolated margin
Our Bybit 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 take the next step? With Oxido Solutions’ Bybit signal service, you can receive reliable buy and sell signals to help you generate extra income on this popular cryptocurrency exchange. You can receive the signals by email, Telegram, Bybit 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 Bybit 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.
Track record
Risk management
UNIQUE
STABLE
FAST
DYNAMIC
ENTERPRISE-READY
SUPPORT
COMPLIANT
LET’S MEET
Curious to learn more about our Bybit trading bot services or have any questions? Don’t hesitate to contact me directly or leave a message using our contact form. I’m here to help you and provide the information you need.
