Earning “Real” Dollars with our Kraken Bot: Your Guide to Passive Income
1. INTRODUCTION
Cryptocurrency, since its launch in 2009, has been a transformative force in finance. Bitcoin is now among the top 10 assets by market cap, alongside giants like Amazon, Apple, and Microsoft. Even though there is a lot of trading in crypto every day, many people remain unsure about cryptocurrencies. Some find it difficult to understand, while others are hesitant to add crypto to their portfolios.
At Oxido Solutions, we’ve spoken with many traditional investors. They were excited about our bots’ performance but often found crypto details challenging. In the Netherlands, there’s a saying: “What the farmer doesn’t know, he doesn’t eat,” which speaks to a fear of the unknown. Even though we did well with crypto fans, it bothered us that many traditional investors didn’t take us seriously.
Motivated by our competitive nature, we created the Oxido Solutions trading bot for Kraken Futures. This tool allows for earning from crypto without owning it. This blog provides clear and complete information about a solution that suits both crypto skeptics and enthusiasts seeking diversity. We’ve organized the content into five sections for ease:
✓ ABOUT US
✓ DEFINITION
✓ FEATURES
✓ PROS & CONS
✓ SERVICES
2. ABOUT OXIDO SOLUTIONS
Oxido Solutions is a tech company in Amsterdam focusing on cryptocurrency trading bot solutions. Founded in 2020 by Jarno de Vries and Guido Lassally, de Vries is the driving force behind Oxido Solutions. He developed not only the Kraken bot but also bots for Bybit and Binance, as well as the OKX bot and its infrastructure. What drove him? His personal experience with manual crypto trading, which was time-consuming and stressful. The birth of his daughter inspired a shift to trading bots for passive income. After creating successful crypto trading bots, Jarno teamed up with Guido Lassally to launch Oxido Solutions. Our clients now include wealthy individuals, family offices, and hedge funds.
3. WHAT IS KRAKEN FUTURES?
Kraken Futures, introduced in February 2019, is a top cryptocurrency futures trading platform associated with the Kraken exchange, which started eight years earlier. While Kraken primarily offers spot trading, Kraken Futures specializes in futures contracts trading.
New to crypto trading? Then, it’s essential to know the difference between spot and futures. Spot trading means you own cryptocurrencies and trade at the current market price, instantly. Futures trading, however, involves contracts for buying or selling an asset at a future date at a set price, allowing speculation on price movements without owning the asset.
Kraken Futures allows users to buy futures contracts using fiat currencies like USD, EUR, and GBP as collateral. This approach reduces the volatility risk of using crypto as collateral. It’s also fully integrated with Kraken’s spot exchange, enabling users to move large amounts of fiat to trade futures contracts without holding crypto assets.
4. WHAT IS A KRAKEN TRADING BOT?
A Kraken trading bot is a software tool that automatically executes trades on the Kraken exchange according to set rules. It’s designed to spot buy and sell opportunities based on these rules and work with other systems. A good Kraken bot can increase capital and lower risks. To pick the right Kraken trading bot, you should understand its key parts. At Oxido Solutions, we consider these parts to be:
4.1. Exchanges
Kraken has different products for various needs, split into Kraken Spot and Kraken Futures.
4.2. Approach
You can build a Kraken trading bot with different methods, like using technical analysis, fundamental analysis, or both, depending on your trading style.
4.3. Data
A Kraken bot analyzes trading data to find possible trading chances on Kraken, considering market trends, past data, and other important details.
4.4. Technology
The tech setup of your Kraken trading bot should match your investment aims, including your choice of programming languages, testing tools, and middleware to make sure it suits your exact needs.
KRAKEN
5. OUR KRAKEN TRADING BOT PHILOSOPHY
At Oxido Solutions, we’re well-versed in crypto bot tech and trading methods. We’ve tested and used these methods extensively, combining them with our innovative ideas to form a distinct trading philosophy. Our Kraken trading bot is built on four core beliefs:
✓ Markets move in cycles
✓ Risk management is crucial
✓ Automated trading beats manual trading
✓ Follow the market trend
5.1. Markets Move in Cycles
We understand that markets go through cycles, which is central to our trading approach. Each cycle comes with its own set of challenges and chances. We believe a solid Kraken trading setup should handle all market cycles and their price movements, including:
– Bull Market: Prices are rising, and there’s a lot of confidence and positivity.
– Bear Market: Prices are dropping, leading to a negative outlook, requiring caution and smart planning.
– Sideways Market: Prices fluctuate within a certain range, lacking a definite trend, calling for detailed analysis.
5.2. Risk Management is Crucial
We place risk management at the core of every Kraken trading plan. It involves identifying risks, assessing their likelihood and impact, and taking action to reduce them. Here’s why it’s vital:
– Preventing Big Losses: Risk management is like a safety net. Not having a trade loss limit is risky, like driving without seatbelts. Setting trade loss limits is essential to protect your investments.
– Staying in the Game: Effective risk management can enhance the balance between risk and reward in your trading approach. It’s about managing the risk on each trade to prevent depleting your capital with a few bad trades.
– Making Wise Choices: Staying level-headed is key in trading. With clear rules for acceptable losses, you can make informed, rational choices rather than impulsive ones driven by fear or greed.
5.3. Automated Trading Beats Manual Trading
We firmly believe that automated trading is superior to manual trading for success with Kraken bots. Nowadays, most trades are executed by bots, which are constantly being improved with tech like AI. The shift to automation presents more obstacles for manual traders. Here’s why we focus on automated trading:
– Accuracy: Humans have limits in processing data quickly, making manual trading challenging. Bots can handle vast amounts of data swiftly and execute more precise trades.
– Consistency: Emotions can affect trading, leading to inconsistent results. Automated trading eliminates emotional bias, ensuring trades stick to a consistent, logical plan.
– Adaptability: Manual traders might struggle to adjust to new market conditions, but automated systems excel at this. They can analyze market data in real-time and make quick, smart decisions.
5.4. Follow the Market Trend
Our strategy leverages market inefficiencies, aligning with the ‘follow the trend’ mindset. This method capitalizes on long-term market trends influenced by momentum and investor actions, offering:
– Viability: Trend-following strategies work with market cycles, ensuring there are always opportunities.
– Gains in Both Directions: Strategies focused on derivatives can profit from both rising and falling trends.
– Thriving in Volatility: Trend-following methods perform well in active markets like cryptocurrencies, even in highly volatile conditions.
LET’S TALK
6. Key Features of Oxido’s Kraken Trading Bot
You now know what a Kraken bot does, the unique aspects of Kraken Futures, and our trading philosophy. Here’s how we’ve turned that philosophy into reality with our Kraken trading bot’s main features:
6.1. Our Trading Strategy
Our Kraken bot follows trends based on technical analysis, using only quantitative data to make decisions. It has a dual-strategy setup with two versions of the ATR indicator, our special trend-following trading algorithm. Each one starts trades when prices cross certain levels. With one ATR for 8-minute periods and another for 9-minute periods, they hedge each other to maintain steady performance in different market situations.
6.2. Trading Pairs
The bot handles two kinds of crypto perpetual futures: Standard and Inverse. Perpetual Futures bet on crypto’s future price without an expiration date, settling in fiat currencies like USD or stablecoins like USDT (USD Tether). On the other hand, Bitcoin Inverse Futures, also perpetual and expiration-free, settle in Bitcoin, letting traders speculate directly in cryptocurrency. Our bot supports both for Bitcoin and Ethereum, enhancing flexibility and risk control in the unpredictable cryptocurrency market.
6.3. Risk Levels
Our bot has three risk settings—low, medium, and high—tying to risk exposures of 2%, 3%, and 4% of your trading funds per trade. These settings don’t account for slippage. The low-risk option targets modest gains with minimal losses, for a more cautious trading approach.
6.4. Isolated Margin
The bot includes an isolated margin feature for managing risk on individual trades. It’s like earmarking specific funds for each trade. This way, a loss in one trade doesn’t impact the others, giving you more control over your risk.
6.5. Sideways Filter
To tackle weak trends that can hurt trend-following strategies, we’ve added a sideways filter. This tool spots sideways price movements, helping our system skip trades during weak trends and only enter trades during strong ones, reducing losses and boosting profits.
6.6. Double Stop Loss
Our risk strategy includes a double trailing stop loss with two parts:
– Primary Trailing Stop Loss: Set when a trade starts, it’s initially placed far from the entry point and adjusts with price changes. It risks no more than 2% (low risk), 3% (medium risk), or 4% (high risk) of your funds, not including slippage.
– Secondary Trailing Stop Loss: Activated when a trade is in profit, it kicks in when the price moves favorably, then trails the price up, closing the trade if it drops slightly. We mainly use limit orders to close positions to prevent slippage and extra costs, with market orders as a backup.
6.7. Alpha Shifter
For quick and accurate delivery of buy and sell signals from our Kraken bot to Kraken and other major crypto exchanges, reliable middleware is essential. Oxido Solutions developed Alpha Shifter to fill this gap. It’s a cutting-edge middleware designed to meet our needs. Alpha Shifter works as a smooth bridge for sending trading signals between different systems or applications, playing a key role in the smooth operation of our Kraken trading bot.
PERFORMANCE
7. Risks & Solutions for Kraken Bot
At Oxido Solutions, we’ve dealt with many challenges in starting our Kraken bot services. Knowing the possible risks and our solutions is important. These cover different aspects, including IT risks, market risks, and regulatory risks.
7.1. IT Risk
Building and operating a trading bot can run into technological troubles like incorrect data, coding mistakes, or server issues. These can disrupt the creation of accurate trading signals, leading to possible capital loss. To minimize IT risks, we’ve developed a top-notch IT infrastructure. Every component is rigorously tested and regularly updated to ensure it’s reliable. Our error management system is quick to detect and correct any issues, reducing their impact.
7.2. Market Risk
The performance of our Kraken bot is tied to market conditions and its adaptability. Market risks can arise from price swings, economic shifts, or unforeseen events. Although we can’t control the market, our bot contains sophisticated risk management tools to adapt to these changes. This includes setting limits on losses per trade, varying stop-loss strategies, and a filter to sidestep trading during unfavorable conditions. Our aim is to mitigate issues caused by sudden market changes.
7.3. Regulatory Risk
Operating a Kraken bot involves navigating through regulatory risks posed by financial market laws and regulations, which might restrict service access or require certain licenses. Oxido Solutions keeps up with regulatory updates by maintaining open communication with Kraken, other exchanges, and global regulators. We adapt our services to comply with regulations and can assist with connecting to experts for dealing with local restrictions or licensing requirements. While we steer clear of offering financial advice, we’re ready to support any IT-related inquiries.
8. ADVANTAGES BYBIT TRADING ROBOT
When you use Oxido Solutions’ Kraken trading robot, you’ll join a competitive field with thousands of other bots in the crypto market. So, what benefits does our Kraken bot have over other investment options? Let’s look at the 6 main advantages.
Passive Income
The Kraken trading bot can help you create a passive income stream by automatically finding trading opportunities based on set rules and strategies.
Less stress
Our bot gives traders a way to avoid the emotional stress of manual trading in unstable markets, while still having the opportunity to make profits from the cryptocurrency market.
Save time
With the Kraken trading bot, you can work on other things or activities while it runs in the background, possibly making profits from the cryptocurrency market without needing your constant attention.
Save Costs
Our Kraken trading bot can find buy and sell opportunities with lower transaction costs than manual trading, thanks to its fast data processing skills.
MORE EFFICIENT
The Kraken Bot can run non-stop, letting you take advantage of market opportunities and possibly make profits even when you’re not at your computer. This leads to more efficient and productive trading.
Diversification
A Kraken trading bot can help you diversify your investments by finding trading opportunities for multiple cryptocurrencies and trading pairs at the same time.
9. SERVICES
Now that you’ve learned about the Kraken bot, you might be looking for more information or perhaps you’re ready to see what our Kraken bot can do. In any case, you are not a guinea pig. Many institutional investors and wealthy individuals benefit every day from our risk-focused trading bot and if you want to check its track record, we can give you access to our data room and special read-only API keys.
Interested in giving it a go? We offer a variety of services and products related to the Kraken trading bot, customized to fit your investment style, experience, and where you are located.
Disclaimer: The opinion expressed in this blog is for general informational purposes only and is not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
