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In this article, I will share details on how I configured Trality crypto trading bot for trading ADA and XLM coins with RSI and STOCH indicators
This is my algo trading bot I originally launched in mid-May 2021, by setting it up to sell EUR-XLM pair based on RSI strategy, bit latter I added ADA coin to this setup, but then I noticed that bot has used all buying power to purchase only ADA coins, which is not what I actually wanted and here I decided I need to fine-tune some settings, defining that say only 50% can go in purchasing one coin, And then I remembered during the day I played with BTC RSI+STOCH indicators and decided it would be smart adding STOCH to this bot also.
What Is a Stochastic Oscillator?
A stochastic oscillator is a momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period of time. The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result. It is used to generate overbought and oversold trading signals, utilizing a 0–100 bounded range of values.
without further ado, here are settings and a few backtests from my Trality crypto trading bot for EUR-ADA and EUR-XLM coins
Here I did some little fine-tuning, setting the buy amount to 90% from the total portfolio. I just want to keep some 10% for opportunity
Also, I set the maximum buy Amount to 45%, as I have 2 coins for trading I want them to be split evenly. Frankly, this part is a bit confusing, and I will keep testing
RSI Settings + Backtesting
here are my RSI settings for trading XLM and ADA coins against EUR
- Action: BUY RSI Candle size 1h, oversold 38
- Action: SELL RSI Candle size 1h, overbought 45
BackTesting RSI strategy on Trality
The bot did in total 56 trades and generated 17.47% against 14.45% buy and hold. though there were a thing concerning me - RSI is a good indicator but it can give false true, and when looking through the chart I noticed there were a few situations when bot bought, but the price continued to drop and then sold with a loss (minimal bur loss).
I decided to add STOCHI indicator to the trades
- Action: BUY STOCH Candle size 1h, oversold 30
- Action: SELL STOCH Candle size 1h, overbought 80
here is backtested result
Backtestng RSI+STOCH strategy on Trality
The little fine-tuning in the bot gives a small boost and increases the number of trades to 70.
Now it was all about restarting the bot and wait for the first results and keep finetuning.