This will be a simple and straightforward guide to educate those interested in learing more about the bitcoin trading bot Profit Trailer and are looking to get into crypto trading with it. This is not meant to be an in-depth or technical guide ut more of an introduction.

What is Profit Trailer?

Profit trailer is a program that runs on your PC which will trade cryptocurrency coins for you automatically on various exchanges. It does this by continuously pulling and pushing data to and from the exchange to “watch” the market there. It uses this information to make decisions automatically for when to buy new coins and when to sell the coins you hold.

How does Profit Trailer make these decisions?

Profit Trailer makes buying and selling decisions based on various settings that can be adjusted in the configuration files (We’ll get to those in a moment) on your computer. In practice, the bot tries it’s very best to follow the age-old market rule of buy low, sell high. How does it do this?

Checkout Profit Trailer Here:

https://profittrailer.com/pt/CryptoGnome

Let’s create an example:

Based on our settings, Profit Trailer is ok with trading ABC coin on the market. Since we have available money in our account the bot will be watch ABC to try and figure out what is a good time to buy it. ABC coin starts to drop in value and the bot notices this. Remember the bot is talking back and forth to the exchange many, many times a second so it can see these changes in real time. So now that the bot sees that ABC is dropping, instead of buying right away, the bot says, “Hey maybe if I wait around just a bit and see what happens I might get a better deal” This is what is called “Trailing”. The bot will continue to “trail” the value downward, watching it very closely. Suddenly, somebody else has bought into the coin and the value begins to rise. The bot says, “Oh, the value is going back up, it’s reached a good buy in price, I’m going to buy ABC now!” So the bot automatically places an order with the exchange to buy a set amount of ABC.

Congratulations, you now have a bunch of ABC coin! But you only want to hold it till you can make a profit right? So how does the bot know when to sell ABC coin?

In our above scenario let’s assume that after the Bot bought ABC that it continued to drop in value a little more and now the coin is -5% under your bought cost. This means that the bot will not sell ABC until the value rises at least 5%, because only then would you be able to make a profit. Remember, buy low, sell high! As the coin rises in value it will be watching it very closely as it increase in value. Once the value of the coin rises to above your initial buy in cost, the bot says, “Yay! We’re in the green it’s time to start following the profit UP!” This is where the namesake of the Bot comes from “Profit Trailer”. The bot will do the same thing as it did when looking to buy a coin but in reverse. As the coin continues to rise in value, the bot will keep a VERY close eye on it’s value. At some point somebody is going to start selling ABC coin and the value will start to decrease. That’s when the bot says, “OK the value is dropping now, I’ve rode the profit wave up as much as I can, it’s time to sell!”, and instantly places a sell order for all of your ABC coin. You’ve made a successful and profitable transaction!

Help! My coin went down a lot in value, how will I ever make a profit!

Sometimes, no matter what, the bot is going to buy a coin that it thought was a good deal, but because of the volatility of the market, the value of the coin may continue to drop. Let again look at ABC coin and see how the bot tries to get out of a bad situation.

So the bot purchased ABC coin, but unfortunately, the value of the coin has continued to drop. What can the bot do to try and help you dig your way out of a big profit hole? This is where DCA comes into play. DCA stand for “Dollar Cost Averaging” If you want to read more about the specifics of DCA you can read up on it here: https://www.investopedia.com/terms/d/dollarcostaveraging.asp

With DCA you can substantially cut the amount of value the coin would have to gain in order for you to sell back to the market at a profit. With our ABC coin, let’s say we bought one coin for a dollar. Since our buy in the value has dropped 25%, what we have now in ABC is only worth .75 at the current market value. Instead of waiting around for the value of ABC to rise a whopping 25% just so we can sell at a profit, we can DCA or “Double down” on our investment price by buying twice the amount of ABC coin at the current .75 price. Because of the way averaging works, we would then only have to wait for the coin to rise in value up to .87 cents for it to become profitable for us to sell. You can set the bot to DCA at any point below the original value for as many times as you want.

IMPORTANT: Just remember each time the bot “Doubles Down” on a coin it comes with double the cost! For example, if you were to double down 6 times on a $1 buy in value, the cost amount to do so would be as follows:

1st DCA on $1 initial buy in value= $2

2st DCA on $1 initial buy in value= $4

3st DCA on $1 initial buy in value= $8

4st DCA on $1 initial buy in value= $16

5st DCA on $1 initial buy in value= $32

6st DCA on $1 initial buy in value= $64

So as you dig into the settings for the bot, make sure you keep in mind how much it’s going to cost every time you allow the bot to DCA….it adds up FAST!

How much cash will the bot make me every day???

It’s great to think about how much the bot has the possibility of making you in USD each day, but you really need to primarily be concerned with how much BTC (Or ETH/USDT) it can make you a day. When you ask around, other users of the bot will give you varying amounts of daily profit, ranging from .5% to 5% a day. There are MANY factors involved with how much the bot will profit in a day. Settings, market conditions, ect, ect. But on average, with the bot setup properly and configured correctly based on YOUR capital, a range of 1%-2% can be expected.

I hope this helps give you an idea of how Profit Trailer works in the most basic of ways. Keep in mind there are many settings and adjustments that you will need to make to your configuration files that will fine tune when/how and why the bot does what it does.

If you are looking for more information regarding Profit Trailer please visit the Github & Profit Trailer Wiki Here:

https://github.com/taniman/profit-trailer

https://wiki.profittrailer.io/

If you want to discuss Profit Trailer or have questions regarding Profit Trailer we have a great community on our Discord server here:

https://discord.gg/YD48BT

If you are interesting in purchasing Profit Trailer head to their main website here:

https://profittrailer.com/pt/CryptoGnome/