17th June 2021.
Welcome to the Bonfida Ask Me Anything (AMA) with Overhead Gains. 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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Welcome to our AMA with @mcored from OPTESLA
Great to be here!
Tonight we will be discussing his trading bots and his strategies towards trading.
So to kick it off. Let’s start with a bit about yourself.
Sure! Hey everyone! Outside of this cryptosphere, in the real world, I am a civil engineer with software engineering at heart. There is a story to it, let’s say it shall we? I started uni nearly 2 decades ago hoping to come out as a software engineer but my dad convinced me to do civil engineering. So I ended up converting my SE units to complete my computer science degree and started taking up civil engineering units. Ever since graduating I have been finding challenges at home and work environments to automate with my coding, and make things run more efficiently.
Currently I work for a road authority as a project/contract manager delivering major civil infrastructure projects, so bots are part of my alternate life.
That is an interesting background. Glad to see you are getting the most out of the Computer Science units today.
It was an odd combo but yes, I have made it work to suit my lifestyle and needs.
I see. So with that occupation you will require a lot of attention to detail and organsation skills.
Would those skills help you with your experience and involvement in crypto?
Absolutely helps. Almost all my crypto investments have work style research approach, and organising my crypto assets according to a management plan!
I have no issues showing one of my mind maps?
Of course not. Go ahead. Would love to see your approach
Ok let’s see how I can share it here. One sec.
So that’s my current distribution of assets — the way I like to have presented. I just find myself at peace when shown that way.
That is a very visual way to interpret your thought process.
Absolutely. For anyone interested, that’s using MindMup and Google Drive.
What is your involvement in Crypto?
Knowingly only 3 years ago, but I had bought $10 worth of Bitcoin in 2014 to donate to a website without realising the true potential of bitcoin. If only i realised the investment value back then!
You’ve had exposure for quite some time! Lets hope you don’t think about that $10 donation too much.
What got you into automated trading?
I still use that service so I am good
Bitcoin Pizzas 2.0
Before I answer that question, I should say three principles govern my life: efficiency, consistency and compliance. I got into automated trading as I realised trading can be done more efficiently by automating and also because I could program. I understood the importance of emotionless trading the hard way.
That makes sense.
How long have you been trading in crypto?
After going through spot trading and an ICO investment spree in late 2017 (was late to the game), in 2020, I got into futures trading — got liquidated and lost $86k capital including investment from home loan equity. It was my first and (determined to be) the last trade done with full of emotion.
So in the beginning of 2021, I started from scratch after looking back and analyzing all my lessons learnt. I am a true believer in following a Trading Plan. As a trader you need to have a Code of Practice, and you just gotta follow it. I have written a Trading Plan that I actively follow and update regularly.
That is an expensive lesson. Glad you’ve taken a positive away from that liquidation.
Are you involved in traditional finance?
I changed all my strategies from 2017, and that’s how OpTesla began. Initial capital was from cashing out Annual Leave.
So I should say no one should fully give up, because we are so early in this game.
I am not involved in traditional finance. But I knew that volatility is where the money is. I skipped stocks, and jumped from Property straight to Crypto.
That is quite the jump from property to crypto.
Automated trading vs human trading. What do you prefer?
Especially after my big loss, I definitely prefer automated trading. There is no emotion with automated trading and I achieve both efficiency and consistency. Also with my kids, automated trading is a no brainer.
Of course. We cannot be awake 24/7 to monitor markets. So its good to have some bots doing the heavy lifting.
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?
That is an interesting question. In my case, which is consistent with the implementation of OpTeslaBot, I like to minimise the number of strategies in developing a bot. It may not have the best ROI in all market conditions, but overall it should be positive. The more strategies there are, the more noise there is and the greater chance for the bot to have a conflicting direction. Speaking of OpTeslaBot, it is a bot created out of curiosity to see if I could compete with a well known bot I soon became disappointed with. I wanted to see if I could create a bot with first principles and still reach this other bot’s ROI. It is so far going in the right direction.
That is an impressive way to get started.
How does the OpTeslaBot handle a fakeout?
Put it straight, no bot can be 100% immune from a fakeout, but OpTeslaBot has a custom algorithm to not ape into a indecisive bullish or bearish movement (without going into too much detail.
Of course. OpTesla has to maintain its edge.
What are some of the advantages and disadvantages of trading bots?
You might not guess this, but the algorithm is simply based on trigonometry.
That is interesting.
One obvious advantage of human trading is that you can be aware of market sentiment — especially our Anakin Skywalker Elon Musk. I have not come across a bot that can pull market sentiment data and perform trading strategies to execute trades. I am too involved with my family life to explore this. I believe they exist, where some could be tapping into EquBot AI etc. The clear advantage with bots is the emotionless trading, consistency and 24x7 uptime.
Saying that, there is a consistent theme amongst previous authors about the emotionless trading being a big winner here.
Yes, and the set and forget approach is a hard discipline to follow though.
How did you find setting your BOT up on Bonfida Bots?
Setting up the bot on Bonfida was pretty straightforward thanks to the step by step YouTube video. It is a very innovative way to make bots available to the masses. Kudos for that!
Where did you learn about creating bots?
I have been programming for nearly 20 years, and being a cofounder of ShareX, my tendency is to always create a desktop app whenever I find a problem. I learnt and implemented everything from scratch to create a bot as a desktop app for BTCMarkets, and Binance after that. I was experimenting with grid bot implementations when it had not caught mainstream yet.
That is quite the experience you’ve got.
I’m interested in ShareX.
So what is ShareX?
Oh glad you asked! ShareX is an open source screen capture, file sharing and productivity tool. @Jaexx and I started it off, and before that we were coding ZScreen together, I bet nobody has heard about that one.
We have a website for it if anyone is interested.
That is interesting. I will look into that
Comes handy for sharing those winnings
Any tips for someone looking to create a bot?
Tips wise, definitely learn Pine Script. I was implementing everything manually using C# as I mentioned earlier until I met @OverheadGains. One more thing I would say is, save a copy of your code on GitHub each time you finish a coding session. It will help you compare your previous code and help you in diagnosing regression bugs etc.
That is some great advice there.
@OverheadGains was a great guest last week for our AMA.
What is better Leading or lagging indicators — What do you find effective for varying market conditions?
I like to keep things simple. As I mentioned earlier, and I personally like trend indicators. Trading Analysis make use of a range of mathematical models, and trend indicators have most of what you need. OpTeslaBot itself uses trend indicators with a custom algorithm I talked about, to minimise trading in ranging markets.
I like that it doesn’t overtrade in ranging markets.
Choppy markets are a bots enemy.
Should you pair two types of indicators together to provide more confidence in your bots trading plan?
I believe so. I think you need at least two indicators to confirm your strategy gets you enough confidence.
What time frames would you suggest for a scalp and trend bots?
I believe 4H is a good time frame. During our testing we found that 4H yielded the highest ROI.
4HR time — frame seems to very common amongst bots.
Where can we find out more information about your bots?
OpTeslaBot is listed at the CompendiumFi marketplace. I should mention that OpTeslaBot has some nice ui touches from @Jaexx who is the lead developer of ShareX, and extensive testing to cover both kind of markets with toggles such as optimal ranging filter, long/short only thanks to @ulquiomaru. I could not make getsharex site clickable by the way.
Is there a one-size fits all approach for a bot in all market conditions?
I should also mention, OpTeslaBot is also submitted for the Bonfida competition although two days later. Got busy with work and totally missed it.
The main thing is that the bot is entered into the competition.
I think it is possible to implement an all rounder bot that works well in all market conditions. The ROI however will not be consistent across all conditions. My favourite bot type is scalp bots that have a higher ROI during scalping, but also come out positive during a trend.
100%. I personally prefer to run different bots depending on the market conditions. Or run a series of bots that cater to wider market conditions.
What were some of the best trades you’ve bots have done and some of the worse?
I was so hyped to see this was in action — the best trade the bot has done so far was a buy at $2,343.00 and a sell at $3,954.60. Touchwood, the bot has not done a trade worse than a 10% loss to the best of my knowledge so far.
That is an impressive trade!
A 10% drawdown is great!
That is all for the questions I have tonight.
Thanks for being our guest tonight!
Thank you! I enjoyed my time chatting here tonight
If anyone has any questions please contact either @mcored or myself we will help answer them for you
@mcored , the transcript will be uploaded to our Medium over the weekend. So if anyone is after any of the information discussed tonight please keep an eye out on our Medium.