Your trading bot in quarantine
What is this quarantine, why is it there, what can you do to make it a success, and when do you get out of it?
Your trading bot in quarantine
BOTS wants to make sure that everyone in the world has the opportunity to build a second, passive income through investing. To do so, we need the help of our bot creators. But what can you expect from us, what do we expect from you, and how do things work? Let’s tell you all there is to know.
Let’s take a look at the quarantine period. When you’re a new bot creator to the BOTS app, your algorithm will do its first trading trial in the so-called ‘quarantine environment.’ But what is this quarantine, why is it there, what can you do to make it a success, and when do you get out of it? Let’s dive in.
What is the quarantine period?
As a new bot creator, the quarantine is the initial period when you will test your algorithm in a paper trading environment. This is an environment where we simulate what happens on the actual market without going there. When your bot sends us signals during the quarantine period, the orders don’t go to the real market. Instead, they stay within the quarantine environment and are monitored internally to be analyzed. Then, based on real market data, we can test the results your newly developed bot achieves.
So basically, the quarantine period is a testing phase. In this phase, we’ll determine how your algorithm would function in the real market: now and in the future.
Why is there a quarantine period?
This quarantine period ensures that your algorithm performs the way you initially thought it would. We know it’s pretty easy to make a small mistake with your back tester, or your algorithm might be overfitted for one specific set of data. If that is the case, your algorithm might perform exceptionally well in the past year but might lose all the funds in the coming months. As you can imagine, this is something we’d like to avoid.
In short: we need to make sure that what happens in the paper trading environment matches your backtesting results.
In addition, this quarantine also functions as a technical check. This paper trading environment is particularly fit to see whether all your signals come through correctly, if all the correct orders are placed at the right times and if there aren’t any connection issues.
How long does the quarantine period take?
The length of the quarantine period depends on your bot. If your bot is programmed to make many trades per week, BOTS can gather all the necessary data more quickly. If your bot trades a bit less often, say once or twice a month, we’ll need more time to collect the data. In addition, if we run into issues, errors, or bugs, we might have to extend this quarantine period.
What can you do to make this quarantine period a success?
Fortunately, you can do a few things as a bot-creator to make the quarantine period a success. It all starts with recording your performance: what performance do you expect from your bot during this period? If there are differences between your reports and ours, there’s a mismatch that we’ll have to investigate.
Another way to keep yourself involved during quarantine is to monitor the signals you’re sending and your responses from our API. If you run into any issues, our Bot Creator Team will always ask you for the messages you’ve sent and received during this period. This helps them identify the problems .
How do you get started in the quarantine period?
When you have developed your bot and backtested it, you can apply to enter the quarantine period. You might’ve already discovered our Onboarding Guide. This Guide has loads of information and allows you to upload your bot with the Bot-Form. You fill the form, send it in, and our Bot Creator Team will schedule your bot for quarantine!