Choosing what Cryptocurrency Pairs to Trade


This article will help you to choose the most appropriate and effective cryptocurrency trading pair.
Let us take a look at new indicators presented in summary table of tab menu [Volatility Indicators]

1) Indicator of the volatility (RB indicator)

if you want to increase revenue from trading with RevenueBot, you should choose the appropriate trading pair with high volatility.

We have calculated indicators of the volatility (RB indicators) for every trading pair presented on cryptocurrency exchanges.

Indicator of the volatility (RB indicator) – is the number of cryptocurrency oscillations on 0.5% for the specified time period (1, 3, 6, 24 hours) in 1 minute intervals

2) Trading risks

In addition to high volatility you should understand the possible risks of trading.

You must analyze trading sygnals and indicators for risk assessment.
RSI indicator – is the important indicator for determining trading pair risk. It reflects the trend power, ranges from 0 to от 100. RSI provides signals when the cryptocurrency is oversold (<30) and when it is overbought (>70).

Trade Pump/dump - is a defining attribute for risk assessment

Total trading volume for the latest 24 hours and if there was pump/dump in the recent past – are the defining attributes for risk assessment.

The indicators mentioned above are made for integrated assessment of trading pair. And are contained in summary table of tab menu [Volatility Indicators] and for integrated assessment of trading pair

The screenshot below shows the content of the table:

RB indicators for the latest 1, 3, 6, 24 hours are presented in the columns:


rb1h-1m
rb3h-1m
rb6h-1m
rb24h-1m

In cells of [rb] columns you can see rise/fall in the price in % for the chosen period of time.

Sorting the data of the selected field in descending order helps to determine high volatility trading pairs for the chosen period of time.

RSI indicators for the latesr 3, 6, 24, 48 hours are presented in the columns:

rsi3h-5m
rsi6h-15m
rsi24h-1h
rsi48h-2h
24hvolume - trading volume of the pair in the last 24 hours.
Pump/Dump - shows if there was a pump/dump in the last 24 hours.

Accordingly you always can assess the volatility of chosen trading pair or find another one based on the indicators we examined in the article.

A concrete example: Which trading pair is better?

Let’s refer to summary table with volatility indicators and see how to use it:

Click on [Volatility Indicators] tab menu https://app.revenuebot.io/office/#/volatility-indicators and you will see the table:

By default, rows are sorted by column rb1h-1m, in order to show to the user the most volatile cryptocurrency pair in the last hour.

As you can see, pair BCHSV/BTC is on the first place with 8 oscillations (for 0.5%) in the last hour and 154 – in the last 24 hours.

You can also see that trading volume reached 11454 BTC in the latest 24 hours and the price increased by 65% in the latest 24 hours, however, the rise of price stopped in the last hour (you can see 0%).

Thus, if you take first 5-15 pairs from the taable you will be able to find the best trading pair that fit your strategy.

Finding the most appropriate trading strategy

1) Strategy for users who want to use bot rarely

Some users prefer not to spend a great deal of time working with bot, and want to configure bot only once, enter it rarely and check the statistics. Such users will make little profit, but without big risk (it’s on average 0.2-0.7% to deposit per day). They must choose trading pair very carefully, diagnosing all the risks. The cryptocurrency should not have frequent pumps/dumps, trading volume should be more than 100 BTC per day and it shouldn’t be little-known or new. Don’t forget to configure filters to start the bots. We also recommend to split the depo into several reliable trading pairs and use non-aggressive settings for the grid of orders – ratecover ≤30% and profit <1%. Number of orders in each order grid and martingale percentage (how much more percent each next order in the grid will be weightier than the previous one) need to be chosen on the basis of deposit amount, because minimum order amount is limited on cryptocurrency exchanges and it can be impossible to devide the depo into 20-30 orders.

2) Strategy for users who want to use bot frequently

Some users can spend a great deal of time working with bot, controlling the trading, changing strategies and configues. Such users are able to make large profits. We recommend to use the most volatile cryptocurrencies pairs that you can trade with profit right here and now till you have time for monitoring. And stop trade if you leave your RevenueBot account.
In this strategy you can use aggressive settings of order matrix with rate cover ≤15%. Also you can configue logarithmic distribution of orders with high ratio (>1.5) to receive more number of orders near current price ща cryptocurrency exchange and activate more depo amount in trading.