Crypto bots – why use them?

Crypto bot with a slight smile looking at the camera
Image by Tony Coffield from Pixabay
Algorithmic trading, trading bots and automated trading are all the same thing. A strategy is made into a program and then gets executed automatically without the involvement of the trader once strategy conditions are met. The practice is so common that it is estimated that 75% of stock shares traded on U.S exchanges originate from automated trading systems.

Algorithmic trading, trading bots and automated trading are all the same thing. A strategy is made into a program and then gets executed automatically without the involvement of the trader once strategy conditions are met. The practice is so common that it is estimated that 75% of stock shares traded on U.S exchanges originate from automated trading systems.

Meanwhile the 24/7 volatile crypto market makes algorithmic trading even more imperative to traders. Unpredictable big moves can happen at any moment. Waking up to a sudden massive green candle or a bloodbath is commonplace. Any serious trader knows that they can turn these potential perils into opportunities. Crypto bots can give these superpowers to any trader:

Crypto bots never sleep

You are exhausted but must wait and see what Asian traders will do. Damn, the Europeans are pushing the price the other way! Just like that, it’s morning and you’re a zombie on your commute and probably were far from your trading A-Game while sleep deprived.

Cat sleeping

Your resilient bot would not miss a single market move due to fatigue, they run 24/7 as long as crypto is exchanging hands.

Crypto bots can monitor the WHOLE market

The classic trading setup is immediately recognizable by the many screens that traders use and intently watch. Even when trying, it’s difficult to keep track of every detail on BTC/USDT, ETH/BTC, ADA/BNB, BAT/USDT, uh wait EOS is moving too! It can be overwhelming and frustrating to do all of this by yourself, not to mention difficult if crypto trading is not your primary job.

Your crypto bot can watch as many pairs as you throw its way! Cast a wider net and increase your chances of success by finding the perfect setup across the board. You don’t even have to be trading all pairs – you can just set alerts on paper trading for some and relax while your crypto bot is on guard.

Crypto bots feel nothing

It takes years of experience to get used to the emotional strain of trading. It’s so easy to go off script just because someone on Twitter said, “dump alert!” or because your indicator is conflicting with another one. Moreover, executing a strategy consistently even when it lost the last two trades takes epic mental fortitude.

Emotions that a trader experiences
Image by Gino Crescoli from Pixabay

Laser focused 24/7 on what you gave it to do, your crypto bot knows no fear and there is nothing that it will deter it from perfect execution. No doubt, no excitement, no revenge trading. It’s a fast track to gaining a decade of trading experience.

Crypto bots are consistent

In case you’re that rare breed of trader that executes their strategy perfectly each time, please teach us how! The rest of us, tend to get distracted by novel indicators, a strongly moving pair, miss something on the charts, sleep through a setup and sometimes lose faith in our strategy.

Consistency is key! If you don’t execute the strategy as intended, you will not enjoy the intended success. The results will be all over the place which will make improvement impossible.

Crypto bots are faster than you

An indicator on one of your pairs goes off! You search for that confirmation…and yes! Now you need to log in and place the trade…what was the Stop Loss again? If you’ve been watching charts and have been blessed with that perfect set up, you will know that speed of execution is just as important as planning.

Image by Tony Coffield from Pixabay

Crypto bots give you super speed! With slippage (the difference between the expected price of a trade and the price at which the trade is executed) being a factor as well, being fast can make or break a trade.

Crypto bots are precise

Even if you’ve been trading a strategy for a while, you can still make a mistake. Satoshis can be confusing, exchanges can be complicated and human error is more common that we’d like to admit. Stories come out again and again about people making multi billion mistakes when trading due to fat fingers.

Image by 15299 from Pixabay

Crypto bots execute strategies correctly and never suffer from fat fingers. Everything from open and close conditions to amounts and risk management is perfect every time. Don’t expose yourself to errors.

So why is not every trader using crypto bots?

Even though traders would get a boost in longevity, scale, emotionless execution, consistency, speed and precision many traders still don’t use bots and are intimidated by algorithmic trading. It makes sense as only recently the process of running a bot included at least one of these issues:

  • Lack of programing knowledge to turn a strategy into a bot
  • The need to buy a bot from a shady source
  • Lack of transparency of what strategy exactly the bot is executing
  • No backtesting data to prove the bot’s efficiency
  • High costs if you are running a small account
  • Lack of flexibility when creating a bot on an online platform

Therefore wants to allow EVERYONE to create, test and deploy a solid crypto trading strategy. All is done through simple typing so there is no need for programming. All strategies must be tested before they are deployed so every trader is aware what the potential of the automation is. Even with free bots featured on the platform, it is always clear exactly what goes into the crypto bot and backtesting results are ready for viewing. The platform intends to keep its free version so traders with all account sizes can validate their strategies.

The flexibility that offers is unmatched. You can create strategies based on percentage price/volume increases, correlations with stocks or the S&P, candlestick patterns and much more. This is a massive step from ‘When RSI is below 30” simplistic takes often found online.  

So, if you want to automate a part or all your trading systems, develop strategies and test them, use a wealth of indicators, candlesticks, other assets or price action will be a long-awaited addition in your trading toolkit.

What kind of strategy rules can I set in

The video below gives detailed instructions, to check out the platform yourself head here.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like
Does trading beat HODL? The ETH edition
Read More

Is it better to trade or HODL Ethereum in 2020?

In August 90% of ETH holders were in profit. This brings up an interesting question: is it better to hold it or trade it? Trading is highly individual and has plenty of approaches so an absolute answer is impossible. However, we can explore some very common crypto trading strategies and see what might help you make the most out of a bull run. The similar experiment for trading Bitcoin during the 2017 bull run pinpointed some easy and profitable strategies. We hope to provide the same again.
Measure your returns in Crypto
Read More

The many ways to measure your trading strategy returns

There are several different ways to calculate return on investment. Each approach looks at different factors like initial investment, cash flow differences and number of years and combining them might give a better perspective.