🍅Modules & Algorithms

Algorithms are the beating heart of the Tradetomato ecosystem. If you are familiar with automated trading, you will have likely gone through the process of configuring a bot to buy & sell e.g. Bitcoin, based on certain conditions. We take this process one step further by introducing modules and algorithms - which you can think of as a flow that links one or more trading bots (we refer to them as modules) together using dependency-based logic.

Modules are the building blocks of an algorithm. Each module serves a specific purpose: spot trading, margin trading, rebalancing, switching trading strategies, and many more. By linking modules together using dependencies, you can create intricate action flows (across connected exchanges and wallets) that completely automate your portfolio. We refer to these flows as algorithms. If you create a single module, it will be displayed as a stand-alone module in your overview. Once you create dependencies between two or more modules, they will be grouped and represented as an algorithm.

This might sound confusing at first, but it allows you to have incredible control over your trading flows. For example, imagine a scenario where you would first like to buy Bitcoin with your preferred currency if the price has risen by 5% in the past 24 hours. Imagine that you would also like 50% of that Bitcoin to be used to buy Ethereum if the price has increased by 1% relative to Bitcoin in the past 3 hours. The resulting module would then include a module that buys and sells Bitcoin and can create sub-positions to trade Ethereum while it's holding Bitcoin.

Modules function based on a set of pre-defined rules that we call conditions. Conditions are based on the tools you choose to use. Our ever-growing collection of tools currently features:

Indicators: Quantitative tools used in technical analysis to interpret and forecast market movements (Bollinger Bands, RSI, MACD, KAMA, etc.).

Candlestick Patterns: Candlestick patterns are a visual representation of price movement over a specific period of time.

Filters: Thresholds and rules to define specific market scenarios (e.g., % change in price in a specified period).

Safeties: Protective mechanisms that allow you to limit your losses (e.g., stop loss).

Profit guards: All the tools you need to secure your gains (e.g., take profit).