Trading bots are the main tool preferred by traders who do not have the time to follow charts all day and want to maximize their potential profit by making a multitude of transactions at once. As these bots can execute thousands of transactions in a matter of seconds, they aided the development of high-frequency trading.
A bot that only predicts how the market price fluctuates Is not enough to make it in the crypto trading world. The system should also feature a variety of trading tools and strategies.
A good example of an efficient commercial trading bot is Gunbot. Gunbot has 15 different strategies and hundreds of different configurable indicators, which can be combined and adapted by the trader to fit his strategy.
The Crypto CFD Trader robot is also a good system, as it offers fast, safe, and secure trading.
While humans need to rest and sleep, a trading robot can go on forever as long as the computer it runs on has power. The markets never stop, and with a trading bot that can trade 24 straight hours, you are able to take advantage of the entry and exit opportunities of the market. As the trading bot does most of the work for you, you save time by having the entire trading process automated.
Easy to use
Noteworthy bots are Gunbot, Gekko, and Cryptohopper, which feature user-friendly interfaces with different integrated trading strategies. Gunbot and Haasbot are examples of bots that are geared more towards advanced trading, but Haasbot’s subscription-based model is more expensive, while Gunbot offers lifetime licenses.
No emotional involvement
There are a number of emotional reactions which can prevent you from making the right trading decisions. Fear, greed, or panic can make you lose track of your end goal, and you can easily be deterred from your initial strategy.
Having strong emotional responses is normal, especially when it involves the possibility of losing money. But trading bots do not operate based on such impulses, which makes them highly efficient in trading. Their decision-making process is built on past strategies and algorithms to objectively compute the most assessable trading data. You are also exposed to less stress, as you do not have to monitor the charts constantly and worry about every little fluctuation.
The execution speed of a trading robot depends on the speed of the computer it runs on. But no matter what computer you are using, the speed of a bot cannot be compared with that of a human trader which has to make all orders one by one, manually. A trading robot can do the job of multiple people in just one trading session.
Multiple trades at once
Trading robots are able to track multiple currency pairs simultaneously. Traders can hold and run multiple accounts at the same time, as well as perform hundreds of trades in the blink of an eye.
Most people expect that once they install a trading bot, they will get huge returns in a matter of days. While trading bots do make things considerably easier, there is not a magical solution that will instantly make all your trades successful and turn you into the greatest trader of all times.
Also, while there are several advanced trading bots which integrate “Machine Learning” in order to detect shifts in market sentiment to determine the best trades, they are not as accurate as the traditional bots which use only indicators configuration.
A trading bot will not develop a trading strategy for you or configure itself to make the most successful trades. A trading bot will work based on its settings, and it will only execute the set of actions that have been configured by you.
Automated trading has enabled many traders to get past the obstacles that stem from time constraints, speed, and consistency in trading plans. Trading bots, when used correctly, are an indispensable tool in the arsenal of a trader which can ensure them profit.
TheBitcoinNews.com is here for you 24/7 to keep you informed on everything crypto. Like what we do? Tip us some Satoshi with the exciting new Lightning Network Tippin.me tool!