Bonfida (AMA) Featuring Compendium.Finance

3rd June 2021.

Welcome to the Bonfida Ask Me Anything (AMA) with Compendium Finance. For the month of June to promote the Bonfida x Serum Trading Competition we have lined up a series of guests to help provide insight to automated trading and how to get involved.

The transcript below follows the format as BOLD TEXT is interviewer and NORMAL TEXT is the interviewee.

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Thanks for taking the time to discuss with us building bots and being in the Bonfida trading competition.

Tell everyone a bit about yourselves

What is Compendium, what do you do

Thanks for having us here!

A bit about myself, I initially got involved with crypto starting with mining eth and btc, that drew me to learning how to trade and eventually to using and developing algos in the pursuit of always-on passive gains. Since then I have been involved in marketing several crypto companies, and consulting with different blockchain based companies. My main interest continues to be automated technology that can help predict markets and provide a solid edge.

I’ve been an avid bitcoiner for some time, and experimented with the technology in early stages. During the last few years I’ve consulted for many blockchain-based companies and helped to establish and develop wallets, exchanges, and payment systems. I’ve always been involved in mining and trading assets. This interest eventually brought me to automated trading strategies to increase involvement when I can’t be present.

CompendiumFi is the extension of these automated trading ideas. We provide an overall platform that gives access to these and other services for traders!

That is quite the background you’ve had.

Would you say that developing algo based trading bots is more effective than human trading?

Glad to see that your early experiences have led to the development of Compendium and now you’re offering algos to help other people automate their trading.

Each has their place, in my experience algo trading has the benefit of emotionless execution based on logic that i neither have the time nor mental fortitude to take on. I utilize that for a large portion of my portfolio, including subscribing to all bots on our platform. As far as human trading I find myself mostly limited to keeping a degen account due to lack of time to sit and stare at charts all day.

That is one of the main reasons why I’ve chosen to automate my trading.

Bots are a great way to remove the emotion from trading.

How long have you been trading for?

You must have some first hand experience in order to translate that into a trading bot

I initially got involved in crypto in 2015 when a buddy of mine introduced me to mining. I gathered all the spare gpu’s I could find and started a farm. Since then my interest expanded to trading once I got more familiar with the space, and developing bots to take on the heavy lifting.

Makes sense. We cannot all be staring at our charts all day.

Are you involved in Traditional Finance? If so, how would you say that trading in Crypto compares?

I am involved in tradfi, but as the years go on that involvement gets smaller and smaller as the crypto industry continues to expand and evolve. As far as tradfi comparing to crypto, it doesn’t. And I rather enjoy the more volatile markets. Crypto is the future of france.

So the fast pace of crypto is preferred. Love it.

So moving on to strategies in trading.

Would you use the same principles for trading in traditional finance compared to crypto?

Some of the same technical analysis would apply but there can be many more determining factors with a 24/7 international market. Especially when each region may be separate in their bearish or bullish sentiment.

I see.

When it comes to trading do you feel that there is one strategy that can be applied to all market conditions? If not, why is that?

I’m a busy man, so automated trading helps with realized passive gains while I continue to design and develop our platform. I’m currently a subscriber to every bot on our platform and have portfolio allocation to all strategies. Automated trading also helps take the emotion and pure time dedication out of the equation. My ultimate favorite strategy to apply to the market is our proprietary machine-learning algorithm which is publicly available for BTC and SOL. However, I do feel something like MACD or RSI can be applied at a higher timeframe for simplicity. No strategy will always have a 100% hit rate because market conditions can change over time causing meta decay. Then you need to go back to the drawing board and make tweaks!

Makes sense.

So how would you describe your Machine Learning bot as a trading style?

It’s highly momentum based. It does however tend to see amazing setups sometimes where I would not.

That is one of the benefits of bots. They see opportunities where we do not.

So let’s talk a bit about your bot entry in the Bonfida — Trading competition.

So you’ve entered a bot — Son of Sam.

How is it going in the competition?

Pretty well for a mostly untested version of the bot. We have had this iteration of the strategy vaulted for a bit and the trading competition was a perfect place to see how it may perform under stress tests!

If anyone wants to see the bots performance they can see it here: https://bots.bonfida.com/#/competition

Quite impressive % gain in only 1.5 weeks. + 35.14%

It’s a marathon, not a sprint 😁

So anyone can enter into your trading pool on Bonfida Bots.

That is one of the perks of having bots on Bonfida

We don’t charge anyone to use the bots upfront. Authors take only a very small % fee at the end of every 30 days.

Which I still find pretty awesome. I love that concept.

It is great!

So, the Son of Sam bot is here if anyone wants to check it out: https://bots.bonfida.com/#/pool/HmNYssreA6VhUVjocB5q7SJfcdymu2Hvtv7vsRLX2HXA

So talking about building a bot.

What are some of the advantages and disadvantages of trading bots?

The main advantage of using a trading bot is sleepless trade execution. They are always on, always trading per the code. I would say the main disadvantage would be depending on market condition and style of trading bot it may be temporarily unsuited for the climate, however in my experience on a long enough timeline you will realize consistent gains with a well written bot. To get started designing your own trading bot I would suggest learning the basics of pinescript and starting with a simple tutorial, then expanding on it. Don’t be afraid to experiment!

That makes sense.

I find some of the algos/bots I use love to enter trades when I’m asleep. So that is a huge benefit there.

I like how you’ve said that when choosing a bot you have to commit for a long enough duration.

Trading algos isn’t a way to get rich overnight. They stick to their logic and provide consistent returns.

How many hours would you put into making an effective bot?

It varies depending on the strategy, a simple indicator algo can be put together in a few minutes, however a more complex algo can take months to develop. And over time you find ways to improve upon them, so I would say some are never really finished. In addition to the development, we dont rely on backtesting, we prefer to forward test all our algos to get real life trade data

That is a good way to put it.

So you can provide ongoing adjustments to the bot when it’s needed.

Why do you prefer to focus on forward testing compared to back testing?

Backtesting is a good way to get a sense of previous performance, but there is no substitute for running it live on a test account. This way we can see how drawdown, funding fees, trade fees, etc have a tangible effect on the algos performance. also slippage can play a part in performance and we want to provide stats that show real life performance of a bot.

That makes sense.

So at Compendium do you factor in all these variables (Funding rates/Trade fees) when reporting returns?

We do! Our system takes multiple factors such as real-time slippage, funding fees, and any trading fees into account when reporting bot performance data. All of our data comes from live test accounts that would function the same way as a user account. This way you know EXACTLY what youre getting instead of being left in the dark.

That is great!

And the same goes for the reporting on Bonfida Bots.

When building your bot, what is your thought process from the start? How would you plan and go about your bot creation?

It can take some time for more complex bot development. Start with an overall goal and what you may want to see realistically out of your strategy.

Understanding which indicators and tools may help you or align with your ideas can put you in a great spot.

That makes sense. So step one would be defining what type of trading bot you will want to make.

IE — Trend, Scalp bot

Correct!

Do you have any valuable tips for anyone looking to create a bot?

I would say that if you are just getting started, keep it simple and learn basic pinescript. familiarize yourself with how simple MA’s work, then expound upon it from there. experimentation is key.

That makes sense.

Keep on experimenting. These things take time

We’ll also be releasing educational material for our platform and building on bonfida bots as well! This includes our signal provider suite 👀

That is great! Let us know how the development goes!

So going to on to Bonfida Bot and getting your bot linked up to it.

How was the process?

How was the overall experience?

The bonfida bot setup is pretty seamless, I had no trouble at all and am impressed by the Solana and Serum ecosystem. The CompendiumFi team is excited to be building on top of this platform to offer new experiences. I have created Bonfida bots using the tradingview implementation and the custom sdk, both were simple but I would highly recommend some preliminary coding knowledge for the latter.

We are glad you’ve had a good experience building on Bonfida.

If anyone wants to see a tutorial on setting a bot on Bonfida — https://www.youtube.com/watch?v=6BFmyi0qnEI

So moving on.

Where can we find out more information about your bots?

so you can find out more about their bots they offer on on-chain on Bonfida here at https://compendium.finance/

Our Website is the best place to find more info on our bots. Along with our proprietary algos we are also adding many third party authors including the Overhead Gains Suite of bots and OpTesla. If you are interested in listing your bot you can register it directly on our website. We never hold any source code and only require signals to be sent to our webhook, ensuring complete IP retention by the author. You can also find two versions of our CompendiuML strategy on bonfida bots and the “Son of Sam ‘’ version currently in the trading competition.

Thanks for that.

One last question,

What were some of the best trades you’ve bots have done and some of the worse?

The CompendiuML strategy has had some excellent trades in catching momentum so far this bullrun. I’d say the worst was when we were in a profitable trade that then got affected by the Elon tweet FUD — but ended up not taking a huge loss in the end due to optimal algo exit. We have built in risk management systems that prevent catastrophic loss or liquidation (if trading on perps markets).

No indicators can predict Elons tweets.

Well, that is all I have for tonight.

If anyone has any questions, please get in touch with Compendium.Finance or Bonfida. We will be happy to clarify any points you may have.

Thanks for being our 1st AMA guest for the Bonfida Bots competition.

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