How to make money with a Bybit Trading Bot
1. INTRODUCTION
Do you want to earn passive income from the crypto market, without spending hours on trading stuck at your screen? That’s what Oxido Solutions’ Bybit trading bot can do for you. It can help you spot top-notch trading opportunities on Bybit, one of the world’s leading cryptocurrency trading platforms. This means you have more time for the things in life that matter most to you. Learn all about our Bybit trading bot software in this blog. To make it easy for you, we’ve broken down the content into these 5 sub-topics:
✓ ABOUT US
✓ DEFINITION
✓ FEATURES
✓ PROS & CONS
✓ SERVICES
2. ABOUT OXIDO SOLUTIONS
Oxido Solutions is an IT company based in Amsterdam that that specializes in crypto trading bot solutions. It was established in 2020 by Jarno de Vries and Guido Lassally. De Vries is the technical mastermind behind Oxido Solutions. He created and built not only the Bybit trading bot, but also the Binance trading bot and the OKX bot, as well as the supporting IT infrastructure. What motivated him? Besides his IT work, Jarno traded cryptocurrencies manually, often staying up all night, which was exhausting. The birth of his daughter encouraged him to make a change, leading him to concentrate on trading bots to earn passive income. After developing a series of successful crypto trading bots, Jarno wanted to share his success with the world, so he teamed up with Guido Lassally to start Oxido Solutions. Today, our clients include high-net-worth individuals, family offices, and hedge funds.
3. WHAT IS BYBIT?
Bybit is a trading platform that was founded in March 2018 by Ben Zhou, a former derivatives trader. Initially, the platform focused on crypto derivatives trading, which involves contracts like futures and options that are linked to cryptocurrency values. Later, Bybit broadened its services to include spot trading, which allows users to directly trade and hold cryptocurrencies. This increase of services has helped Bybit become one of the top 3 global trading platforms.
4. WHAT IS A BYBIT TRADING BOT?
A Bybit trading bot is a software program that follows predefined rules to help you automate trade execution on Bybit. It is designed to find and act on buying and selling opportunities based on these rules and interact with other systems. A well-made Bybit bot can help you increase your capital and lower risks. To find the right Bybit trading bot, you need to understand its key components. At Oxido Solutions, we think these components are:
4.1. Exchanges
Bybit has a variety of products to meet different user needs, split into two main categories: Bybit Spot and Bybit Derivatives.
4.2. Approach
You can create a Bybit trading bot in a few different ways, such as using technical analysis, fundamental analysis, or a mix of both, depending on the strategy that aligns with your trading philosophy.
4.3. Data
A Bybit bot uses trading data to analyze and identify potential trading opportunities on Bybit. This data includes market conditions, past trends, and other relevant factors.
4.4. Technology
Your investment goals determine the technical setup of your Bybit robot, which involves selecting programming languages, backtesting tools, and middleware to make sure it meets your specific needs.
BYBIT
5. OUR BYBIT TRADING BOT PHILOSOPHY
As experts in crypto bot technology, Oxido Solutions knows all the common trading methods. Through a lot of testing and practical use over the years, we’ve blended these insights with our creativity to make a unique trading vision. This vision is the foundation of our Bybit trading bot, guided by four main principles:
✓ MARKETS ARE CYCLICAL
✓ RISK MANAGEMENT IS PRIORITY ONE
✓ NO MANUAL TRADING
✓ THE TREND IS YOUR FRIEND
5.1 Markets are cyclical
At Oxido Solutions, we understand that markets move in cycles—a key part of our trading philosophy. Each cycle has its own difficulties and opportunities. We think the best Bybit trading setup should handle all types of market cycles and their related price actions, such as: BULL MARKET: This market has rising prices, high confidence, and optimism in this upward trend. BEAR MARKET: This market has falling prices and pessimism, and requires caution and strategic planning. SIDEWAYS MARKET: The market fluctuates within a range, without a clear direction, and requires careful analysis.
5.2. Risk management is priority one
We think risk management should be the core of every Bybit trading strategy. It means identifying potential risks, assessing their probability and impact, and taking steps to minimize them. Here’s why risk management is important:
AVOIDING BIG LOSSES: Like a car’s safety features, risk management in Bybit bots is essential. Not setting a trade loss limit is like driving without seatbelts, risking big financial damage. Setting limits on trade losses is crucial for preserving investments.
HELPS YOU STAY IN THE GAME: Good risk management can enhance the risk-reward ratio of your trading strategy. It’s about managing how much you risk on each trade to avoid losing your capital through a few bad trades.
MAKING SMARTER DECISIONS: Staying calm is important for trading on Bybit. With set rules for acceptable losses, you can make smart, rational decisions instead of acting out of fear or greed, which can spoil your trading strategy.
5.3 No Manual trading
At Oxido Solutions, we firmly believe in the superiority of automated trading methods over manual ones for success in Bybit bot trading. Most of the trades are now done by bots, which are enhanced with advanced technologies like AI. This shift towards automation means manual traders on Bybit face more challenges. Main reasons for our focus on automation are:
ACCURACY: Manual trading on Bybit, especially at medium or high speeds, is difficult because of the human limit in processing data fast. Automated bots can process a lot of data quickly and do more precise trades. They work all the time, adjusting to market changes right away, something hard for manual traders.
CONSISTENCY: Trading can be emotional, with fear and greed often causing different outcomes. Automated trading eliminates these emotional biases, ensuring trades follow a set, rational strategy. This discipline helps achieve long-term profits and avoid big losses.
ADAPTATION: Manual traders may have trouble adapting to new market conditions, while automated systems are good at this. They can look at market data in real-time, making smart decisions fast. This speed lets our Bybit trading bots use new opportunities right away, staying ahead in the changing market.
5.4 The trend is your friend
At Oxido Solutions, we aim to take advantage of inefficiencies in the crypto market, following the philosophy that ‘the trend is your friend’. This strategy means that aligning trading actions with the current market trend usually leads to better results than resisting it. This approach is based on the fact that market trends tend to last for a relatively long time, driven by momentum and investor behavior. So, using these trends is usually less risky and more simple than trying to speculate on when they will change.
Other reasons for our trend-focused trading bot software are:
VIABILITY: Markets are naturally cyclical and influenced by trends. While the causes for new trends may change, there are always opportunities for trend-following traders as long as price movement exists.
TWO-WAY GAINS: A trend-following strategy, specially designed for derivatives, allows for trading in both rising and falling markets, making profits from both upward and downward trends.
VOLATILE-FRIENDLY: A trend-following method is very effective in active markets like the cryptocurrency market, where trends can be seen even during periods of high volatility.
LET’S TALK
6. FEATURES OF OXIDO’S BYBIT BOT
You already know what a Bybit bot is, how the platform has grown into a major trading platform, and our vision for trading on Bybit. In this chapter, you’ll discover how we’ve turned that vision into a working product, our own Bybit trading bot, and its main features.
6.1. Our Bybit Strategy
The Bybit trading bot is a trend-following bot based on technical analysis, making decisions only based on numerical data. It uses a multi-strategy approach with two versions of the ATR, our own trend-following algorithm. Each version applies breakout strategies to signal buys or sells when prices move past a set range. With one ATR for the 8-minute and another for the 9-minute timeframe, they provide mutual hedging to balance performance across different market conditions.
6.2. Trading Pairs
The Bybit trading bot was first developed for two types of Bitcoin perpetual futures: Standard Bitcoin Perpetual Futures and Bitcoin Inverse. Standard Perpetual Futures are contracts that speculate on the future price of Bitcoin without an expiration date, using fiat currency like USD and stablecoins like USDT (USD Tether) for settlement. On the other hand, Bitcoin Inverse Futures, also without an expiration date, are settled in Bitcoin itself, letting traders speculate on price movements directly in cryptocurrency. These tools give traders flexibility in strategy and risk management in the unstable crypto market. Since February 2024, the Bybit trading bot has also supported both types of perpetual futures for Ethereum and all major altcoins, including Solana, Polkadot, and Cardano.
6.3. Risk Levels
Our Bybit trading robot offers three risk levels: low, medium, and high, matching risk exposures of 2%, 3%, and 4% of the trading capital per trade, respectively. It’s important to note that these calculations do not include slippage, which is the difference between the expected price of a trade and the price at which it is actually done. The low-risk level aims for smaller profits but also has smaller losses, providing a more cautious approach to bot trading.
6.4. Isolated Margin
Oxido Solutions’ Bybit trading bot supports isolated margin, a useful feature that helps in managing the risk of each individual trade. It’s like setting aside a specific amount of money for different expenses. With isolated margin, you set a certain amount of funds for each trade and use only those funds for that trade. This makes sure that a bad trade won’t affect your other trades on Bybit, giving you more control over your risk management.
6.5. Sideways Filter
One of the biggest challenges with trend-following trading bot strategies is their poor performance during weak trends. Oxido Solutions has introduced a solution with its sideways filter. This technical indicator detects sideways price movements early on. As a result, our trading system avoids trades during weak trends and only engages when there’s a strong trend, lowering losses and increasing profits.
6.6. Double Stop Loss
Our double trailing stop loss is a key part of our risk management strategy. Here’s what makes it special:
PRIMARY TRAILING STOP LOSS: This activates right away when a position is opened. It’s set at a large distance from the entry point and changes with price movements. The distance is based on market conditions and the size of the position, considering the user’s risk profile. This means at the start of the trade, no more than 2% (low risk), 3% (medium risk), or 4% (high risk), not counting slippage, is risked through the primary trailing stop loss.
SECONDARY TRAILING STOP LOSS: This activates only when the position is in profit. It starts if the price moves a bit in the desired direction. From there, a trailing stop loss is used, moving up with the price and closing the position if it drops a bit. Positions are mainly closed using limit orders to avoid slippage and extra Bybit trading fees, with market orders as a backup if the limit order isn’t filled.
6.7. Alpha Shifter
To make sure buy and sell signals from a Bybit trading bot get to Bybit fast and accurately, middleware software is crucial. Middleware acts as a bridge for sharing data between different systems or applications, playing a key role in the operation of a Bybit trading bot. At Oxido Solutions, we saw that the current middleware options didn’t suit our specific needs. So, we made Alpha Shifter, our own advanced middleware trading system that efficiently sends trading signals to Bybit and other major crypto trading platforms.
PERFORMANCE
7. BYBIT BOT RISKS & SOLUTIONS
At Oxido Solutions, we’ve encountered many challenges in launching our Bybit trading bot services. It’s important to understand the potential risks and our solutions. These include – but are not limited to – IT risks, market risks, and regulatory risks.
7.1. IT Risk
Developing and running a trading bot involves technical aspects that could cause IT-related issues, such as wrong or missing input, coding errors, or server outages. These problems can prevent the generation of accurate buy and sell signals, leading to possible financial losses. To reduce IT risks, Oxido Solutions has built a strong IT infrastructure. Every component goes through rigorous testing and regular software and hardware updates to ensure their reliability. Our error management system quickly detects and fixes any errors, minimizing their impact.
7.2. Market Risk
The success of your Bybit trading bot depends on market conditions and the bot’s ability to adapt. Market risks can come from volatility, economic changes, or unexpected events. We can’t control market conditions, but our Bybit trading bot has advanced risk management features to adapt to changes. These features limit losses per trade, use dynamic stop-loss mechanisms, and have a chop filter to avoid trading in bad conditions. Our goal is to lower losses from unexpected market events.
7.3. Regulatory Risk
Using a Bybit trading bot also involves dealing with regulatory risks from financial market laws and regulations, which could restrict access to services or require specific licenses. Oxido Solutions stays updated on regulatory changes by keeping open lines of communication with Bybit, other exchanges, and regulators worldwide. We modify our services to follow regulations and can connect you with experts for advice on any regional restrictions or licensing requirements. While we don’t give financial advice, we’re here to help with any IT-related questions.
8. ADVANTAGES BYBIT TRADING ROBOT
When you use Oxido Solutions’ Bybit trading robot, you’ll join a competitive field with thousands of other bots in the cryptocurrency market. So, what benefits does our Bybit bot have over other investment options? Let’s look at the 6 main advantages.
Passive Income
The Bybit 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 Bybit 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 Bybit 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 Bybit 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 Bybit trading bot can help you diversify your investments by finding trading opportunities for multiple cryptocurrencies and trading pairs at the same time.
9. SERVICES
You’ve just learned a lot about the Bybit bot. Hopefully the article has given you a lot of insights for further research or maybe you are fully convinced of the power of Bybit and the trading bot that we have developed for this platform. In any case, you are not a guinea pig. Numerous institutional investors and high net worth individuals benefit daily from our risk-focused trading bot and if you want to verify the track record, we can give you access to our data room and special read-only api keys. Are you curious to try it out? We have different services and products for the Bybit trading bot, customized for you based on your investor profile, background, and location.
