Latest Updates - January 2023

QUAD Selling via QUADX is not available yet, but it will be available soon. Stay tuned for updates.
You can now automate the trades of your QUADX account using bots, and take advantage of bot trading with no fees.

Overview

In this article, we'll get you started quickly with the Quadency bots. Bots help you automate buying and selling based on a strategy. If you want to learn about what are bots, make sure to go through this article.

Details

To get started with Quadency, simply head towards the Bots tab.

In this tab, you will find everything related to your bots, from analytics to status, and will be able to manage all of your bots from one place. You will see all the available bots for you to use. Within this space you will have access to two pages:

My bots: to manage your bots already created
Available bots: to access all the available bots, simple or advanced, and to create one.

For now, click on available bots to find select a bot.

Trading Strategies

These bots are based on trading strategies and offer more personalization. You will find bots like the Market Maker, Grid Trader, Smart Order, Rebalancer, Market Maker Plus, and DCA (Accumulator).

Technical Indicator Strategies

These bots are the easiest to configure. Some are indicator-based strategies like MACD, Mean Reversion, Bollinger Bands, DMAC, and Multi-Level RSI.

Build Your Own

Quadency also offers fully customizable strategies with TradingView bot and the Strategy Coder.

My Bot Workspace

Once you found a strategy that suits your need, click the green “select” button on the right side, and it will take you to the bot workspace. Here, you will find two or three tabs:

Parameters: This is where you configure your bot
Backtest: In this tab, you will be able to see the results of your backtests.
Live Mode: get insights and find real-time info about your live bot
Note: some bots that rely on real-time order book data cannot be backtested, thus the backtest tab will not be available.

Getting a bot started

Let’s get you started by configuring a simple bot like MACD, backtesting it, and then running it live.

1. Configure your Parameters

In your parameters tab, you will see at least 2 sections, general settings, and strategy settings section.

General settings:

Configuration name: this is the name of the bot, platform sets a name by default, but you can change it at your convenience.
Exchange: this is the exchange to run the bot on. Select the exchange you will use from the drop-down menu.
Account: this is the account you will run this bot. Select the account from the dropdown menu.
Market: this refers to the trading pair you will use. If your exchange supports the trading pair, it will be there for you to select.
Available balances: this will reflect the available balance of the assets you selected in the market section. So if you select BTC/USDT on the market section, the available balance section will show the balance for BTC and USDT.

Strategy settings:

These are specific to each bot, even though some settings like Candle Timeframe are used on all Indicator-based bots. You can find more information about these in every bot guide. Reviewing the guides will help you set a correct and valid set of parameters. In our example, the MACD bot has several Strategy Settings:

Candle Timeframe: Select the chart time frame to run this bot on.
MACD Slow period: Specify the look-back period (number of bars) for the slow-moving average calculation
MACD Fast Period: Specify the look-back period (number of bars) for the fast-moving average calculation
MACD Signal Period: Specify the look-back period (number of bars) for signal line calculation
Exit Condition: Select how the bot should close a position (open trade) whether on an Indicator Confirmation or pending a Profit Target or Stop Loss.

Indicator-based bots have a third section, Profit & Risk Management. This section is only useful when you wish the bot to close the positions when a Profit Target or a Stop Loss is reached.

Need ideas? Try Smart Suggest to quickly find potentially profitable configurations for bots!

Once you've configured the parameters to your liking, you can go ahead and backtest your strategy.

Note: you can create multiple instances (copies) of the same bot to try a different combination of pairs and strategy settings.

2. Backtestesting

Disclaimer: Backtested or simulated performance results have inherent limitations and should not be interpreted as a recommendation to buy or sell any assets nor a guarantee of future returns. Actual results will vary and Quadency makes no representation or warranty regarding future performance.

Backtesting a strategy can be a helpful step to help you determine the optimal parameters for your bot. Please feel free to review this backtesting guide to have a good understanding of what are backtests.

Keep in mind that if you are backtesting a strategy, you are assuming that at some point you will use the same strategy with the parameters you set, so try to make configurations as close to reality as possible.

To run a backtest, simply click the "Backtest" button.

You will be prompted to select a backtest timeframe. The timeframe dictates how far back in time you'd like to start the simulation of this strategy.

Example: if you select 1 Year, and the candle timeframe selected is Daily, the simulation will run on ~365 daily candles, ending today.

You can stop the backtest at any time while it is running. Stopping the backtest will discard any results and is only needed if for some reason it is taking too long to complete. Generally, the time it takes to complete a backtest depends on two factors:

Candle timeframe
Backtest timeframe

Note: Shorter candle timeframes generally take longer as there are many more bars to process.

3. Interpreting the results

Once your backtest has been completed, you can check the backtest summary to know if your configuration could be profitable.

Backtest Summary:

Return: This is the overall return of the strategy over the backtest period. It is calculated as PnL / Starting capital or (Ending Capital - Starting Capital) / Starting Capital.

Starting Capital: This is the capital you will give the bot to start trading with, the bot will use this amount to place buy orders of the asset. In this backtest, our bot was allocated $1000 USDT as the starting capital at the beginning of the backtest period.
Ending Capital: This is the resulting equity of the capital managed by the bot. It includes profit/loss from all closed positions as well as any open positions that would not have closed at the end of the backtest period.
Profit/Loss: This is the net profit/loss as a result of all trades, plus profit/loss in any remaining open positions. It is calculated as (Ending Capital - Starting Capital)
Trades: This is the total number of trades executed within the backtest period
Backtest Completed: The timestamp of the last backtest completion.
Backtest Window Start: This is the timestamp of the first bar of historical data used for this backtest.
Backtest Window End: This is the timestamp of the last bar of the historical data used for backtesting.

Performance: The performance chart shows how the capital managed by the bot has grown or declined over time. Flatlines indicate periods in which the bot had no open positions and therefore the capital was not subject to market movement.

Market chart: All trades executed by the bot are plotted on the chart for easier visualization. Green arrows indicate the bot executed a buy, and red arrows indicate the bot executed a sell. You can also hover over the red/green arrows to see the amount and price that was traded.

Trades table: Each trade executed by the bot will show up in the trades table. All buy and sell orders will show up here.

Activity logs: This section will give you more information regarding the bot trades including the exact time of the trade or the event that triggered the trade.

If you want to update the parameters and run another backtest, simply make the changes in the parameters tab, and click the backtest button again to run another simulation.

4. Run your bot live

Before running your bot live, it is important that you refer to the details below for complete information that you should know before starting your bot live.

Steps to do before you can start your bot live:
a. Select which currency to pay your bot fees with, refer to our 'How to select the currency to pay fees?' article.

b. Deposit the currency you prefer to pay your bot fees with. In depositing assets to your Quadency account, refer to 'How to deposit assets in your Quadency account?' article.

c. For details that are important to know before running your bot live, please review the ff.

Once you've decided on a strategy or bot that works for you, backtested its results(if possible), the results are convincing enough for you to start running the bot live, and have reviewed the 'Steps to do before you can start your bot live', you can then start your bot by pressing the "Start Live" button.

Once started, the bot will begin implementing your bot's parameters, monitoring its performance, and evaluating the trade conditions at the end of each new candle.

For example: if you selected a 1-minute candle timeframe, the first signal evaluation will happen within the next minute or so. If you selected a daily candle timeframe, the bot will wait for the current daily candle to close.

Live results will become visible after the first candle has been completed. You can begin to monitor the bot's live performance, which visually looks very similar to the backtest results, with the exception of the trading section.

For the live mode in addition to the performance summary, you will see the open positions, open orders, and trade history associated with your bot.

Open Positions: This is where you can see any current holdings that the bot has purchased. In this example, the 0.03 BTC were bought and the current open PnL is -$7.60 for this position. Overall return is shown in the Live Summary in the top section of the Live Mode tab. Stats in the Live Summary are updated every minute.
Open Orders: This is where you can see any open limit orders waiting to be filled. Whether there will be any open orders depends on the bot's strategy.
Trade History: This table shows all trades (buys/sells) conducted by this bot.

You can stop a bot at any time by clicking the live mode tab, then click the “stop live” button on the right top corner. A message will display asking if you are sure you want to stop the bot, click on stop bot. Note that if there are any open positions, you will need to close them manually. Follow this guide to stop your bot manually.

Additional Information

Adding a new bot

You can run multiple bots at a time. If you want to leave one bot running, and start another bot, simply go to the bot tab, click on the available bots section, click the select button of the bot you want to add, configure the bot and start it live. You will be able to see both bots running on the “my bots” section.

Note: the number of live bots running is determined by your Quadency tier depending on your QUAD holdings or trading volume. Click here to learn more about Quadency tiers.

Tips

Shorter candle intervals result in more frequent trades than longer ones
A tighter profit target and wider stop-loss will result in smaller but frequent profits
Bots evaluate the position at the end of each candle interval, it is possible for the bot to not place any order if the conditions are met within the candle timeframe but not at the end.
Be sure to back-test your settings before starting live to make sure the strategy performs well on the market and the timeframe selected
Any profits from trades are automatically reinvested in subsequent trades. For example, if you start a MACD bot with $100, and the first trade results in a $2 profit, the next trade will use $102, and so on.

We hope you found this guide to be helpful in getting started with Quadency Bots. There are many more strategies in the works (simple and advanced) so be sure to check back regularly for updates or to join our Telegram, Discord, and Twitter.

If you have any questions, comments, or suggestions, please feel free to reach us by emailing [email protected] or initiate a live chat from the button in the bottom right corner of your screen.