Documentation - Best practices

Trading bots available on the Psyll platform are advanced tools that automate the investment process. They enable users to react to market signals in real time, optimize entry and exit points, and consistently execute pre-defined strategies without emotional interference. However, even the most sophisticated bot requires conscious supervision from the user. Proper practices in monitoring, planning, and data analysis significantly enhance both the effectiveness and safety of automated trading.

Below is a set of recommended principles and guidelines to help you fully utilize automation potential while maintaining control and capital security.

Regular monitoring of bot performance

Although Psyll bots operate fully automatically, their performance depends on current market conditions, exchange connectivity, and strategy configuration. For this reason, even automated systems require regular oversight - at least periodic reviews of results and trading activity.

In practice, you should:

Check bot logs to ensure all transactions are executed according to the intended logic.
Analyze response times to trading signals, especially during periods of high volatility.
Observe notifications within Psyll’s system, which report API errors, exchange disconnections, or rejected orders.

Even small discrepancies between expected and actual bot behavior can result in losses, so systematic monitoring remains the best preventive measure.

Tip: Active traders should review bot performance daily. For long-term strategies - at least once a week.

Analyzing order slippage

Price slippage occurs when a market order is executed at a price different from the expected one - usually worse. In cryptocurrency trading, this can be caused by low liquidity, data transmission delays, or order sizes exceeding market depth.

Regular slippage analysis helps assess execution quality and strategy stability. If you notice frequent or significant differences between signal and execution prices, consider:

Reducing the position size, or
Choosing a bot operating in a more liquid market.

This helps maintain strategy consistency and reduce unnecessary losses caused by technical factors rather than trading logic.

Example: A bot places a buy order for BTC/USDC at a signal price of 64,000 USDC, but execution occurs at 64,200 USDC - a 0.3% slippage, which can heavily affect short-term strategies.

Planning capital allocation

Effective capital management is key to long-term success in automated trading. Each bot operates within a defined investment budget that must align with your risk level and strategic style.

Single-position bots

For bots that open only one position per signal, it is recommended to allocate a small portion of your total capital. This approach minimizes risk since the bot does not increase exposure as trends develop. It also allows you to run multiple bots across different trading pairs - improving diversification and portfolio stability.

Recommendation: A single bot should not control more than 5 - 10% of your total trading capital.

Pyramiding bots

For strategies using pyramiding, the approach differs. Each additional position increases total exposure, making capital structure planning crucial.

Before activating the bot, use the Pyramiding Planner available in the bot panel. This tool analyzes historical data and generates allocation variants - from highly aggressive to conservative - helping balance exposure, cost, and expected performance.

Tip: Avoid assigning all your capital to a single pyramiding bot. Always leave a safety margin for unfavorable trading streaks.

Setting realistic expectations

Psyll bots rely on logic and data-driven strategies, but they do not eliminate market risk. The cryptocurrency market is highly volatile, with rapid price swings and occasional liquidity gaps - so caution is essential.

Automation improves decision efficiency, not replaces investor judgment. The most successful users treat bots as supportive tools - maintaining discipline, reducing emotional errors, and executing strategies consistently.

Remember: Steady, moderate profits over time are far better than risky attempts to achieve short-term records.

Data analysis and ongoing optimization

Psyll provides detailed performance analytics - including win ratios, average profit/loss, streaks, position counts, and pyramiding effectiveness. Regular data review helps you:

Detect inefficiencies in bot performance.
Understand correlations between configuration parameters and outcomes.
Optimize exposure and risk for better consistency.

Security and technical best practices

Psyll never has direct access to your funds. Bots operate exclusively via exchange APIs, executing trades within granted permissions.

To ensure full security:

Use API keys with limited permissions (trading only, no withdrawals).
Regularly rotate API keys, especially after testing new bots.
Monitor API activity logs and connected IP addresses.
Enable two-factor authentication (2FA) to protect platform access.

Technical security and API control are just as important as trading strategy - neglecting one can undermine the other.

Summary

Effective use of Psyll trading bots combines automation, data analysis, and mindful capital management. Regular monitoring, slippage analysis, careful allocation, and realistic expectations enable traders to build stable, long-term strategies.

For pyramiding bots, responsible planning and the Pyramiding Planner are key to balancing risk and reward. For single-position bots, diversification and limited exposure remain the foundation of safety.

In short: A bot does not replace the investor - it empowers them. Responsibility, observation, and optimization form the three pillars of successful automated trading on Psyll.