Auto Trading Bot: the principle of its operation, advantages and rules of use
Auto trading software implies automated placement of orders for buy/sell transactions, which is provided by a special system or program. Such bots help to considerably reduce time and effort spent by a human for trading at exchanges.
Auto trading system executes an order in the shortest time possible, as soon as all conditions that have been entered in the program strategy have been met. Accordingly, before proceeding to the final customization of the software, you need to prescribe all the conditions of the deals. And for this it is desirable to test them for the final profitability, and only then automate all the processes.
How the system works is described in details.
Auto trading bots are a relatively new service that makes the life of both beginners and experienced investors much easier. In most cases, they are quite complex programs and trading platforms that require external plug-ins.
All traders with a basic knowledge of programming can develop their own application, which will automate the transactions, taking into account individual requirements and real-time practice.
The most popular is automated trading, which is performed as soon as the criteria set by the trader are met.
What are auto trading robots for?
Nowadays, more and more often people try to automate all the processes of their lives to have more time for those things that are really important and necessary. So, auto trading robot allows to fully exclude human participation in trading. Yes, you can keep abreast of the latest news and the program itself, but with the right settings it will work correctly without your extra intervention.
You can connect such a bot to make buy and sell deals with all instruments:
- Futures, etc.
There is also auto trader crypto software for working with cryptocurrencies.
All features of automated trading
To start working with bots you need to develop a strategy that will define the principle of your trading. By using different structures, the system allows you to adapt the program for all categories of investors:
- Retail investor. For such users, the function of automatic trading at a specific time interval is relevant, as well as orders and instruments that fully meet the search criteria.
- Institutional and technical traders. The bot allows to activate not only conditional orders, but also various strategies: scalping, grid or trend trading, etc. Often institutional investors run a customized trading platform for automated trading, which operates according to their own algorithm.
Basic autobot strategies
The strategies that auto trader crypto engages can vary depending on what principle a particular investor is trading on. Among the main options are:
- Automated trades in securities while maintaining a percentage distribution for each.
- Automated trading based on a technical market signal. It requires an elaborate conditional order, which allows you to call an entry price to determine income and expenses.
- Tracking actively developing trends, trends, and trading with the maximum profit that can be obtained from current instruments. To do this, you need to study supply and demand.
How to create your trading strategy? To begin with it is important to determine the terms – they should be clearly defined and easy to follow. In order to develop a growth strategy in trading, they must take into account:
- The way the deal is made: all the parameters that allow you to run a deal are prescribed;
- conditions of closing of the deal;
- restrictions that will suspend the trade;
- additional protection of personal funds.
Keep in mind that the better the program auto trader crypto is designed, the better it will be able to perform automatic trading even without your active participation.