I am happy to announce, that after a long testing period, I am finally releasing my Bitcoin trading bot to the public.
It will need RFT’s Architect EA to run. Download the setfiles here:
The Chopper runs on BTCUSD on the 1h (hourly) timeframe.
Why is the BTC Chopper so special?
I created the BTC Chopper trading bot after many years of trying to find the one algorithm that actually turns profits on the long run, without liquidating an account. The catch is that BTC used to be a rather immature asset class on its own, with ever changing group of traders, investors, market makers, etc. This made BTC trading extremely unreliable and impossible to figure out.
However, after the Bitcoin ETFs have been finally appeared in the US market, the institutional players have entered the game. This has stabilized the market, and after long, BTC can be traded based on algorithms. No more market makers and scam exchanges hunting stoplosses, dumping billions in value, liquidating entire fortunes.
goes ballistic and you can probably sail through the months with less, but like I said, this is not intended to be a high risk algo, so if you want it safe, I would recommend a starting balance somewhere around the 5K range.
Mechanics under the hood
So how does the Chopper actually work? At its core, it is basically is a scalper with martingale support. The quick scalps generate profits of around 1 dollar per trade. However, when the first and second positions do cannot close in profits, it means that there is unusual movement in the markets, and the algo turns into beast mode, it means it starts building a bigger position and that bigger position will eventually close out in bigger profits. This is why it is not a scalper but, more like a chopper.
Once crucial aspect that I included in this algo is the temporal logic, which means that there is 1 trade opened per hour at maximum. This is one the reasons why the Chopper performs so well. When I was compiling the criteria for trades, looking back at the historical price action of Bitcoin, what I noticed was that even during the most aggressive selloffs or moonshots, there was no continuous one directional movement for an extended period of time, there was always some liquidity pool or sell-wall that was eventually touched. In other words, the Chopper will never suffer from quick selloffs, quite the contrary, it is only going get into a noticeable drawdown if the price action goes slowly in only 1 direction for a long period of time, let’s say 24 hours, non-stop. Anyone who has been involved in trading Bitcoin, will know that even during the worst of times, every one-directional move has limited temporal effect. Usually within a couple of hours there is some pull-back in the price, no matter the direction. This is one of the most crucial elements of the trading logic.
The second one is the cautious martingale configuration. Usually martingale setups will increase lot sizes with every trade or every second trade when the price goes against the positions. With the Chopper, the position sizes increase by a multiplier of 1,5x, every 3 trades. This means that the first 3 trades are with 0.01 lot size, levels 4 to 6 are 0.02, levels 7 to 9 are 0.03, levels 10 to 12 are 0.05, then next batch is 0.07 and so on and so forth. This allows the Chopper a great deal of flexibility. I never really saw a huge basket that was getting me into a serious drawdown, these lot size increases are reasonable, the grid distance is also manageable.
These are the basics that you need to need to know in order to get a fair understanding of how the Chopper is configured. One or two trades every day, which is scalping, unless some major moves are happening, and then it turns into beast mode, closing out with substantial profits.
How to get the Chopper
The Chopper works as a setfile that you can load into the Architect EA. This means, that in order to use it, you will actually need to have a copy of the Architect. It’s an amazing EA, if you have been watching my videos you will know its capabilities, so I will not go into details just now. The download link is in the description field too. You will get 3 setfiles: you get the standard Chopper, but you will find 2 others: one is for the moderate users who want to have even lower drawdowns and are happy with lower profits, the other is an aggressive version, which produces simply stellar profits, in exchange for a potential stoploss along the way. Obviously the first one is the one that I battle tested and has been running on my live accounts for months, the other two is mostly for experimenting.
Buy the Architect here, by clicking on the image below, and use the code: 15OFF at the checkout to get a 15% discount!
Limits of the Chopper
It is important to see what the Chopper can do and what it cannot. While this bot seems to be generating consistent gains month over month, I would use it as an additional diversification method to compliment other trading bots. The standard settings that are in the download package are performing quite well as long as the price of BTC is above 50K, which also defines this market cycle of crypto. It means that for the foreseeable future, this configuration will probably work well. However, in case there is a critical shift in market conditions, and BTC drops and stays below 50K for an extended period of time, I think the algo will see limited effectiveness. Also, there is no telling how the Chopper would perform under extremely bullish scenarios, let’s say when the price of BTC goes and stays above 200K. I will probably need to revise the steps of the grid.
However, as long as the price is moving between 50 and 200K, I am confident that the Chopper will perform according to expectation.
Why release it publicly?
One last point to clarify: why am I releasing it to the public, especially for free? If this algo helps anyone in turning some profits, I’m happy. On the other hand, I my main intention is to encourage everyone to take a look under the hood and see how the trading logic is configured, motivate people to make tweaks and adjustments, and share those results. I hope that the power of the community will eventually make the Chopper even better. I will post updates frequently about the performance, any possible improvements, so make sure you follow along if this is something that is interesting to you.