October 4th Update: Switching to Regression Slope Cross for our Bitcoin Trading Bot
Well, we now know that the $360 resistance level broke very easily and we are now testing $350, which requires a change in our bitcoin trading bot strategy. The weekend has just begun, which means fresh fiat cannot hit the exchanges until monday or tuesday, so those who want to buy coins as cheaply as possible. Given this, I expect the downtrend to continue until we hit the next resistance point and bounce off of it.
Since we can assume the downtrend will continue, I am now going to use the bitcoin trading bot that I have been using this week and change from PPO to Regression Slope Cross. Regression Slope Cross is the most advanced indicator that Haasbot has to offer and it can be tweaked to work great in the mid term and short term. For the short term, I will be using Regression at 100 data length, or candles. 100 data length for Regression Slope Cross is great for very short term fluctuations and I am extremely confident that this will perform well in these market conditions. Once we do hit the bottom of this short term bear market, I will then up the data length to 300, in order to catch more mid term price fluctuations.
As you can see, Regression Slope Cross has been doing very well against historical data of the last 24 hours, I will will go ahead and apply this indicator without any insurances for my bitcoin trading bot, because I am willing to take small losses in order to secure my position for the trend reversal that should occur at some point this weekend. I should get some decent profits and/or be able to secure my fiat amount due to the uncertainty and downtrend for this market.
Overview over the last 24 hours
Well, I had not anticipated that $360 resistance level would break so quickly, which resulted in the loss of roughly ~$2 usd (trading 1 full bitcoin) due to my inaccuracy and using the 15 minute PPO. Looking at the Bitcoin Wisdom charts, MACD-Histogram would have performed about the same, with very small losses. I can accept small losses in a bear market like this, because when you are examining the bigger picture, it is clear that a trend reversal is coming soon, unless ~$340 is broken, which means that we are in a new bear territory.
I wish you all the best luck with your bitcoin trades, and I know hope that this blog helps to show you how interesting and useful bitcoin trading bot software is. I personally love the fact that this bitcoin trading bot has secured my position during this downtrend and has only lost ~$2, which is absolutely acceptable to me. But anyways, have a good weekend and happy trades!