Exchange fees are an important factor in crypto trading, as they can significantly impact profitability. Gunbot handles exchange fees carefully, using both user-configured fee levels for profit calculations and actual fees provided by the exchange for reporting. Here’s how Gunbot manages these fees to keep trades profitable.
How Gunbot Manages Exchange Fees
Gunbot offers a straightforward approach to handling exchange fees to help you maintain profitability in your trades:
- User-Configured Fee Level: When you set up Gunbot with an exchange, you specify the expected fee level for that exchange. This setting is used to estimate trading costs and set profitable price targets. By incorporating fees into its trading calculations, Gunbot ensures that every trade aims to clear a profit margin above the fees.
- Exchange-Reported Fees: For accurate reporting, Gunbot also uses the actual fee data provided by the exchange on each order. This helps you track exact trading costs and adjust strategies if needed.
Setting Up Exchange Fees in Gunbot
Configuring the fee level in Gunbot is a crucial step in setting up your trading strategy:
- Input the Average Fee: As you connect to a new exchange, Gunbot will prompt you to input the average fee rate you expect to pay on trades. This value should reflect the typical transaction fee the exchange charges, such as a flat fee or a percentage. When you're unsure about the average fee level you'll encounter, you can also enter the highest possible fee level just to be sure to have a safe fee level.
- Accurate Cost Calculations: By factoring in your configured fee level, Gunbot calculates the average cost of assets held and sets targets that account for these fees. This helps avoid trades that might otherwise end up unprofitable once fees are factored in.
Why Fee Configuration Matters
Exchange fees can eat into small margins, especially in high-frequency trading or volatile markets. Gunbot’s approach makes sure your trades aim for a net profit, not just a gross profit that could be reduced by fees. Here’s how Gunbot leverages this fee information:
- Profit Targeting: Gunbot automatically includes the configured fee level when calculating profit thresholds, ensuring that each sell order is set to cover both the asset cost and trading fees. This means you can confidently rely on Gunbot to pursue trades that clear your fee-adjusted profit goals.
- Reporting Precision: Actual fee data provided by the exchange is recorded for each completed trade. This real-time fee reporting is essential for accurate profit tracking and allows you to monitor your trading strategy’s performance against the true cost of each transaction.
Tips for Configuring Exchange Fees
When setting fee levels, a few best practices can help you get the most accurate results:
- Use a Conservative Estimate: Setting a fee level that slightly overestimates typical costs can provide a buffer against unexpected fee spikes. This approach helps keep trades profitable, even if the exchange fee temporarily increases.
- Regularly Review Exchange Fees: Exchanges sometimes change their fee structures. Reviewing your exchange’s fee documentation periodically ensures that your configured fee levels in Gunbot remain accurate and up-to-date.
For more detailed information on configuring and updating exchange fees, refer to your exchange’s support documentation or Gunbot’s official setup guides.