A Look at How Bots Could Change your Trading Game
ots are gaining popularity among crypto traders - and for a good reason.
21:45 18 December 2021
A crypto bot, by its design, aims to eliminate the complexities of manual trading and help a trader make profits on a consistent basis.
In this article, we will take a brief look at how bots could be a real gamechanger in your trading career.
More Efficient than Humans
Using a bot presents more advantages than the conventional trading system which requires human interference to a greater extent.
Humans, no matter their level of experience and skill set, can’t match the bots in terms of monitoring (being able to keep a watch on the market for an extended period of time); processing speed (how quickly they can react to a potential opportunity); capacity (the amount of data one can process), so on and so forth.
And it’s obvious that traders are prone to getting trapped emotionally and make mistakes driven largely by fear or greed, which is not the case with bots.
With a clear rule-based operation, these bots cut out the emotional aspect tied to trading so you can be sure you won’t commit that same mistake out of fear or greed again.
Why Choose Bot Trading…
Any trading bot is basically cut out to perform a number of monotonous tasks 24*7 that include monitoring the market, waiting for the right opportunity to show up, and alerting the trader/ placing the trades themselves- so a significant amount of profits can be made at low risk all without the trader having to move his or her finger.
The algorithmic smarts programmed into these bots allows them to operate round the clock, and a good chunk of their work involves processing heaps and heaps of data every second looking for that statistically significant opportunity to trade that offers maximum profits at minimal risk.
But Each Bot is Built Different
Each crypto bot is built differently. They have been programmed to perform a specific function adhering to the set of logical and conditional rules they’re built on. Yet a majority of bots have some features in common. One feature worthy of mentioning is the intelligent decision engine that keeps combing through the market to see if it can spot any favorable trading opportunities, and when it comes upon one, it runs a quick check if the rules laid out by the trader are met for the trade to take effect. And, just when it thinks the time is ripe and the conditions perfect, it gets the signal generator to send out a timely alert for the trader to act on.
The Right Bot for the Right Job
Bots can do all the heavy lifting for you, but you still need to know which bot to pick and when, and be clear about what rules should go into that bot. That comes with experience and over time.
A bot is as good as the person who developed it. In the same way, a bot’s performance is as good as the person using it. As the old saying goes, ‘garbage in, garbage out.’
To have a decent chance of succeeding at trading with bots, it is really important that you know what you’re doing. And that means being able to understand what’s going on in the market and then picking the right trading strategy that fits with the market movements.
It is quite common to see traders use grid trading as a strategy when the market is locked in a range and moves sideways. A grid trading bot is optimized to take advantage of this particular price pattern. It places buy and sell orders as the market swings back and forth from the highs and lows in that set range, allowing you to generate huge profits in a non-trending market. These bots come into their own particularly when volatility picks up in the market, leveraging on the fluctuations and not wasting the opportunities to make huge profits.
Another commonly used strategy is dollar-cost averaging, which basically lets you invest in crypto assets at consistent intervals, so you avoid the risk that comes with buying all at once. In so doing, the DCA bot lets you accumulate a good number of coins over time for a good average price thereby significantly reducing the level of risk.
At a fundamental level, the two bots behave in their own way: the DCA bot aims to bring down the overall cost of purchase by investing regularly, whereas the grid trading bot closes out the open positions from time to time, keeping a check on your holding.
Choosing the Right Trading Bot
Crypto trading with bots is still an emerging space and a lot of bots, which are still not fully mature, are cropping up left, right and center. And that makes picking the right one for your trading goals and profit expectations all the more important.
Remember, a robust crypto trading platform is one that has a combination of different bots, powerful analysis tools and a wide range of features that help them hone their skills and improve as a trader. With new bots coming through left, right and center, the market is crammed with options, and it may be a little difficult to find your way through all that marketing malarkey. But don’t fret. Your search for the right bot to trade with is over.
We’ve done the research for you and are fairly convinced that not many web applications are as resourceful and powerful as the bitcoin circuit. As the review on tecnoticias.net/2021/04/bitcoin-circuit-opiniones-confiable-o-es-una-estafa-2021 notes, this web app is excellent for all traders no matter their level of experience. It provides a superlative trading experience with a great user interface, a no-nonsense registration process, and a wide assortment of bots. Just make the initial deposit, play with the demo bot to get a feel for trading with the bot, formulate the rules you need the bot to stick to, and let the bots work their magic.