How to Use Tradingview With Trading Bots

When it comes to investments, you need contemporary tools to optimize the profitability and manage risks. A TradingView bot is a great instrument that should be in the arsenal of every crypto investor who wants to make real money.

Whether you need automation is not a question. All contemporary retail traders must use the full spectrum of tools available to them in the industry. Modern automation tools offered by companies like WunderTrading can dramatically improve the profitability of any given trading strategy if you understand technical analysis and risk management.

The beauty of algorithmic trading

One of the biggest weaknesses of any scalping or day trading strategy used in the crypto market is that people cannot remain active in the market around the clock. When Binance US has its most active period, OKX may not have the highest trading volume. However, after the sun sets in the Americas, Asian markets start waking up.

Bots have several advantages over human traders:

•         A trading robot can work 24/7 without losing its focus or consistency. It is a perfect machine designed to receive certain alerts and immediately open a market order when conditions in the market are close to perfect according to the selected strategy.
•         You don’t need to overpay for the service. Contemporary automation providers offer flexible payments plans. For example, WunderTrading has a special plan for all registered users that allows them to run up to five bots for free. It is not enough for a really good strategy, but can be sufficient for something like a single-asset swing strategy.
•         Robots follow exact instructions without a fail. Many human traders have very good strategies that produce many true positives, but they second-guess themselves and do not follow through with opening the market position and miss out on many opportunities to make a profitable trade.

How does TradingView play into all of this?

Automation is a very specific tool that needs instructions and conditions to work. A script will not operate properly if it does not have trading signals. Something must trigger the dormant bot into action and give it an instruction.

A typical bot has three components:

1.       A signal generator that gives out alerts.
2.       A script deployed on an automation platform that receives signals.
3.       An exchange where bots can open market positions.

Signals can be given out manually, but it won’t be proper automation. It is still mostly manual. You only cut some idle time and increase the reaction speed of the trading system. To build truly automated trading systems (ATS), you need to use TradingView.

This online-only terminal is one of the things that completely changed the world of retail trading and transformed the relationships between technologies involved in financial markets. Before TradingView, bots were niche products offered platform-wide by brokerage service providers and exchanges. Today, third-party developers can focus on perfecting automation and offering competitive products to retail traders.

The only significant thing that happened is the creation of TradingView.

Using advanced strategies

TradingView is an excellent platform that has immense utility. With its ongoing development, the list of useful tools keeps expanding. While the richness of features is quite hard to fully cover in a single article, we can still describe TradingView as a sum of its distinct parts:

•         Advanced charting tools. Graphical overlays like straight and curved lines, Fibonacci lines, fractals, and more can be very informative for a trained eye. You can make predictions about the price direction based on extrapolations and historical data.
•         Sophisticated technical indicators. You cannot really impress any retail trader with typical RSIs and MACDs, but TradingView can offer a wide range of custom solutions exclusive to the platform on top of the standard list of indicators. Hash Ribbons for Bitcoin is a great example — an independently developed tool created specifically for this platform.
•         API integration and script writing. The platform has a unique environment where integrations with exchanges and service providers are effortless. TradingView also has Pine Editor that allows users to write custom code in a user-friendly language. This script allows you to generate very specific signals for bots.

TradingView allows its clients to deploy dozens of indicators on multiple charts simultaneously and conduct thorough analysis of the current market situation.

From the trading automation point of view, TradingView is excellent because it stores a massive amount of historical data. Backtesting and paper trading are easy when you have so much information about price action to play with.

The excessive market data also makes it possible for traders to estimate volatility and compare various assets to each other with the advantage of having the whole history of every asset taken into consideration. Predicting volatility, trends, and correlations can be possible with the range of tools available in the catalog of TradingView.

How to use TradingView with bots

While the minutia of creating a bot that utilizes signals from a sophisticated trading strategy deployed on TradingView can be learned only through detailed tutorials, the general gist of it is quite simple:

1.       Create a new account on WunderTrading if you still do not have one.
2.       Connect an exchange account that you want to use for automation.
3.       Go to TradingView and open a chart with historical data from the selected exchange.
4.       Use the tutorial on WunderTrading to learn how to send signals to bots.
5.       Go to the “My Bots” section in the WudnderTrading dashboard.
6.       Create a new bot and set up the source signal as TradingView.
7.       Launch the bot and closely monitor its performance.

You don’t need to use the TradingView API manually. The WunderTrading platform will do everything if you set up hook for the script correctly.

The main takeaway

It is not hard to create an advanced strategy using TradingView. You can go to forums and find systems created by power users and tested by retail traders from the massive TV community. Just don’t forget about strategy testing and try to play around with instruments provided by this analytical platform as regularly as possible.