What You'll Learn
- Different types of trading bots and their use cases
- How to configure bot parameters safely
- Backtesting and paper trading strategies
- Best practices for bot deployment and monitoring
Types of Trading Bots
DCA Bot
BeginnerAutomatically buy at regular intervals
Best for: Long-term accumulation of tokens you believe in
Key Settings
Investment amount
Frequency (hourly/daily/weekly)
Target token
Stop conditions
Grid Trading Bot
IntermediateProfit from price oscillations in a range
Best for: Sideways or range-bound markets
Key Settings
Price range (upper/lower)
Grid levels
Investment per grid
Rebalancing rules
Momentum Bot
AdvancedBuy on upward momentum, sell on reversal
Best for: Trending markets with strong volume
Key Settings
Technical indicators
Entry/exit conditions
Stop loss rules
Take profit targets
Arbitrage Bot
ExpertExploit price differences across exchanges
Best for: Market inefficiencies and price gaps
Key Settings
Exchange connections
Minimum spread
Slippage tolerance
Fee calculations
Step-by-Step Bot Creation
1
Choose Your Strategy
Select a bot type that matches your trading goals
- Consider your risk tolerance and experience level
- Choose based on market conditions (trending vs sideways)
- Start simple with DCA or grid bots for beginners
- Review bot performance examples in our marketplace
2
Configure Parameters
Set up your bot's trading rules and limits
- Define entry and exit conditions clearly
- Set appropriate position sizes (1-5% of portfolio)
- Configure stop losses and take profits
- Test parameters with historical data first
3
Backtest Your Strategy
Test your bot against historical market data
- Use at least 6 months of historical data
- Test in different market conditions (bull, bear, sideways)
- Analyze key metrics: win rate, profit factor, max drawdown
- Optimize parameters based on backtest results
4
Paper Trade
Run your bot with virtual money first
- Test for at least 1-2 weeks in paper trading mode
- Monitor bot behavior and decision making
- Verify all conditions trigger correctly
- Check performance matches backtest expectations
5
Deploy with Small Capital
Start live trading with minimal risk
- Begin with 1-2% of your total trading capital
- Monitor closely for the first few days
- Gradually increase allocation if performing well
- Always have a plan to stop the bot if needed
Configuration Example
Here's an example configuration for a simple DCA bot:
// Example DCA Bot Configuration
{
"name": "SOL DCA Bot",
"type": "dca",
"token": "So11111111111111111111111111111111111111112",
"settings": {
"amount": 10, // USD per purchase
"frequency": "daily",
"maxInvestment": 1000, // Total investment limit
"stopLoss": 0.3, // Stop if down 30%
"takeProfit": 2.0 // Take profit at 100% gain
},
"conditions": {
"minVolume": 1000000, // Minimum 24h volume
"maxPrice": 200 // Don't buy if price above $200
}
}Best Practices & Safety Tips
Do's
- Always backtest before deploying
- Start with small amounts
- Monitor bot performance daily
- Set clear stop conditions
- Keep detailed performance logs
Don'ts
- Never invest more than you can afford to lose
- Don't set and forget - always monitor
- Don't over-optimize based on past data
- Don't run too many bots simultaneously
- Don't ignore market condition changes