How to choose the best pair

[LordBB]

Dear all,

noob question here but:
- is there any threads about advices to know how to choose the best pairs?

I don't really know where to start and how to choose particulary a good pair.. (maybe it's based on volatility, etc..?).

Thank you so much in advance for your help!

Ciao

[Kris191]

Pair choosing is difficult as there is so many to choose from, in principle your currency side of the pair would be a stable coin to enable better trading tracking, but crypot and stable dont really mix. I choose crypto asset that i like the tech and the basic fundamentals hold up i.e does it solve a problem, is the team solid, are they active and ultimately is it a scam?

Once you have the coins you want to trade check which pairs are available ETH, BTC USDT, exchange specific coin like BNB or can you trade with Fiat (USD, EUR etc). Then look at the price history of the coin(i chose to ignore the the December and January bull run). then i ask myself to i believe this coin will become something bigger or has it peaked, if after all that i'm still bought in then i go for it.

Depending on your trading style (Swing, Day or long term) make a plan on when to buy and when to get out AND STICK TO IT. then enter the world of the up and down sideways moving Cryptio exchange, when its good its good when its bad, well it still fun!!

I hope that helps

[LordBB]

Nice reading, thank you, I really appreciate Kris191!

[xFFFFF]

Im always do backtest with my favorite strategies on all pairs, and filter these has trades < 2 on day and then from filtered choose with best profit/day and volume values.

I wrote the BacktestTool app to do such tests on all interesing pairs. If you want to go this way, do the tests in the last 2 weeks, then check how it looks in the last two months. To be sure that the behavior of a given coin was not a short trend like pump&dump or others short moons.

According to my observations, the best are pairs that occur only on one exchange. For example, a BNB pairs from Binance or some USD pairs from Bitfinex. Coins with the highest marketcap (ie BTC, ETH, LTC etc.) are the most difficult.

[LordBB]

Im always do backtest with my favorite strategies on all pairs, and filter these has trades < 2 on day and then from filtered choose with best profit/day and volume values.

I wrote the BacktestTool app to do such tests on all interesing pairs. If you want to go this way, do the tests in the last 2 weeks, then check how it looks in the last two months. To be sure that the behavior of a given coin was not a short trend like pump&dump or others short moons.

According to my observations, the best are pairs that occur only on one exchange. For example, a BNB pairs from Binance or some USD pairs from Bitfinex. Coins with the highest marketcap (ie BTC, ETH, LTC etc.) are the most difficult.

Wao that's crazy, thank you.
I installed it and already got interested results, just discovered the other side of the mountain

Keep up the great work xFFFFF!

[xFFFFF]

In the new version you can run several strategies on multiple pairs, and the app will compare average results and display in a table such as this:

Input data ...


... some time later



results are sorted by percent of profitable backtests on dataset

[BotsEdge]

Besides the fundamental side of a project one more thing is really critical.

You need to check the volume traded of the pair that you chose at the exchange you want to trade at. If there is not enough volume traded there is not much the trading bot can do. Even if it triggers a buy or a sell signal it might not be executed since there is nobody willing to sell/buy at that price level.

You might use a tool like this
https://coincheckup.com/category/trading
and sort for the trading volume column to find trading pairs.

Once you found one you actually need to check Gekko exchanges to evaluate whether your trading pair is there or not.