If you are interested in running sophisticated automated trading strategies (ATS) like AI crypto trading systems, you will be sorely disappointed. However, many other automation techniques work here well thanks to natively deployed features and several specialized providers supporting it directly.
We will talk about different methods of automating trades on this platform and how to maximize the efficiency of grid and dca robots offered by the CEX natively. We strongly believe that it is possible to create a balanced portfolio of positions based solely on robots.
Why should you use an automated trading bot for FameEX?
We have to start with some benefits enjoyed by users of this platform to explain why automation is an important part of any strategy that can work well here.
● The spot market is very diverse and deep. The exchange offers 183 different digital assets forming 191 pairs. The daily trading volume of over $4 billion indicates deep liquidity suitable for a wide range of strategies including market-making, HFT trading, and arbitrage. The biggest trading pair here is BTC/USDT with a 24-hour volume of over $2.1 billion making it a great target for DCA systems.
● The margin trading account is a good choice for many users who are interested in increasing their potential profitability. You can access USDT and USDC futures as well as option contracts with ultra-fast expiration (under 3 minutes). Derivatives can be used to hedge against various market risks associated with holding long positions. Options are purely speculative instruments that some investors find attractive.
● The Launchpool is regularly updated with interesting up-and-coming projects where you can be an early adopter. You won’t be able to set up a FameEX trading bot for this particular section of the exchange but having an option to quickly jump on a hype train is often a privilege. You can earn a variety of rewards by simply depositing USDT tokens to the exchange and participating in the spot market.
● A functional API port. Users with some technical expertise and developers can interact with the CEX directly via the API port. It can be used to deploy a FameEX API trading bot with tools like HummingBot or applications from GitHub. People who know how to code can develop their own tools and connect them to the CEX directly.
These advantages make this exchange an attractive destination for thousands of retail traders. The presence of native automation features also plays a huge role in increasing the popularity of the platform. For example, you can easily launch a FameEX grid trading bot to capitalize on the consistency of the DCA price selection method and reliably make money on the spot market. A crypto grid bot is a time-tested instrument that has a solid track record.
How to pick the right FameEX bot for beginners
The variety of automation instruments can be a detriment in some cases. Diversity often overwhelms newcomers and becomes the main cause of hesitation. Having just a couple of options is great for novices. This exchange offers exactly that — simplicity. A person without any prior exposure to the world of automation and investing won’t feel confused by the complexity of available tools. Instead, they will simply pick one of two options:
- A DCA trading bot for FameEX is a simple algorithm that follows the basics of the distributed cost average system which is a time-tested approach to reducing the average price of asset acquisition. It works well when you want to create a solid long position and want to make sure that you don’t overpay for an asset. By splitting a single purchase into a series of smaller positions, you are able to cut the cost of investment by a significant margin. A crypto DCA bot works well for investors interested in holding Bitcoin or Ethereum.
- The grid system is partially based on the DCA method as it usually selects entry points using this approach. It splits a single position into multiple and creates exit points for each of them. Lines on the chart form a net giving this strategy its iconic name. A typical FameEX grid strategy trading bot is capable of consistently producing small profits. It is not the main money-maker. Instead, you should think of it as a tool to preserve wealth, generate respectable passive income, and allocate capital to the ecosystem without actively managing it.
These two options are the only ones available to the clients of the CEX. You can also try using other methods including the following:
● Develop a robot. GitHub has a plethora of various applications that can be used as is or after some tinkering. Building proprietary software can be a rewarding experience but it works only for investors with solid technical expertise and coding skills.
● Use HummingBot or similar tools. HummingBot is an open-source automation platform developed by a team of volunteers and funded by several CEXes including Binance, Kraken, Coinbase, and many others. A person without any technical know-how will struggle with such tools but it will work well for those who are experienced with old-school programs with outdated user interfaces.
● Look for a third-party provider that supports the exchange directly. Unfortunately, some of the best automation vendors in the crypto ecosystem are not integrated with this Australian CEX. However, you can still talk to customer support specialists and ask them to add the exchange to the list of supported platforms.
Since HummingBot and other open-source projects also have their lists of supported CEXes, it may take you quite a while until you find a tool that works well with this exchange. For instance, if you want to run an automatic market-maker spot trading bot for FameEX using HummingBot, you need to check whether a CLOB connector for the exchange is available in the GitHub repository. Otherwise, you are out of luck.
Which are third-party providers the best?
Even if you cannot use industry-leading services to deploy various FameEX bot trading strategies, it is still important to know how they work. According to a survey of several hundred investors, over 65% of individual retail traders use automation to some extent. The share of active bot users will inevitably increase in the near future.
You should learn about the best instruments available to retail investors operating in the world of cryptocurrencies. We will give you several examples of companies that deserve your attention.
● Cryptohopper is one of the most popular platforms in the sector. It has a solid product lineup that was recently expanded with an AI grid bot that can adjust positions according to the changes in market conditions. Cryptohopper has a flexible pricing system allowing users to choose their plans. You can create all sorts of ATS designs and deploy them on 12 supported CEXes including Binance, Coinbase, Kraken, KuCoin, and many others.
● 3Commas has one of the strongest social components in the industry. The marketplace of ideas is full of signal sources, unique strategies, add-ons, TradingView systems, and more. You can also simply go to the copy trading section and start following one of the thousands of vetted managers offering their services for a small fee or even for free. 3Commas can be an expensive tool to use as its annual payment is high enough to wipe out small gains that a low-budget investor will make from something like a FameEX arbitrage trading bot.
● Cryptorobotics is an interesting platform that offers a wide range of different ATS designs, social trading, analytics, portfolio tracking, and more. It is a good choice for people who are interested in using advanced strategies and do not mind dealing with an overdesigned user interface that can confuse even an experienced user of automation services. The complicated dashboard and difficult onboarding are some of the most notable issues with the platform. Otherwise, it is a solid provider that has many interesting tools in its arsenal.
● GunBot has recently made a splash in the crypto community by deploying its AI assistant that can write scripts and deploy robots based on descriptions received from users and written in natural language. In essence, it is a ChatGPT-like bot that has been modified to work well within the confines of this particular automation provider. GunBot can work across DeFi and CeFi making it a sound pick for many users who are interested in exploring the world of decentralized finance.
● TradeSanta is famous for its massive catalog of premade strategies. The platform offers over a thousand different templates including some unique trading tools for FameEX or any other centralized exchange. TradeSanta is a great choice for a newcomer eager to explore the cryptocurrency market and experiment with various investment approaches. The provider also has a flexible pricing system that caters to investors on a low budget. If you want to find a good starting point, taking a second look at TradeSanta is a good idea.
● WunderTrading is a highly versatile crypto trading platform that offers a wide range of different tools that can be used by newcomers and veterans quite successfully. The platform has some of the best ready-made solutions including an AI-assisted statistical arbitrage system and a very reliable grid robot. You can also use signals from suppliers that you trust or create a unique strategy on TradingView and automate it using the capabilities of the WunderTrading technological infrastructure. If you need a FameEx arbitrage trading bot capable of bringing in consistent returns, you must talk to the customer support of WunderTrading right now and beg them to add this particular exchange to the list of supported platforms.
These are industry-leading providers with powerful automation tools that can elevate your investment game to the next level. The only issue is that they do not support this CEX directly.
How to set up a trading bot on FameEX
The process of launching an autonomous robot on this exchange is quite simple. Below is a simple step-by-step guide explaining how to get started:
- Go to the official FameEX website and register a new account.
- In the uppermost horizontal menu, choose “Trade -> GRID”.
- Choose the pair you want to work with (BTC/USDT is the default).
- Click “Spot Grids” in the rightmost menu, and pick “Custom” or “AI Strategy”.
- Select price ranges within which your robots will operate.
- Choose the number of instances (positions) used by the Bitcoin trading bot for FameEX.
- Select the size of investable capital and click “Start Grid Trading”.
The robot will be launched immediately. It is a good idea to limit the amount of funds available to it and track its performance for some time before committing to a larger size of investable capital. This particular FameEX bot setup tutorial is for GRID robots only. DCA buying is not yet supported by the updated technological platform of the CEX to which all users are being systematically migrated.
The AI strategy does not require the same level of tuning and can generate solid profits as is. As of the time of writing, the 7-day annualized return was over 130%.
The main takeaway
This particular exchange is a great choice for people interested in building a portfolio full of long positions hedged by futures. It also has a respectable automation suite offering a reliable grid strategy to all its users. If you need a more advanced crypto DCA bot or an AI-enhanced statistical arbitrage system, you will have to look elsewhere. Otherwise, it is a perfect choice for investors who do not want to complicate their journey through the world of cryptocurrencies.
