How trading bots can help us to improve our results. These are some of the most important factors we should take into account:
Emotions can be one of the biggest trading saboteurs a trader can find. They will make you overtrade when the euphoria takes over you after some positive trades, and will produce you a big feeling of revenge when you have had losses.
If there is something you can be sure about, is that these emotions will come to influence your trading in a rather negative way. An automated trading strategy will immediately evaporate any external factor that hasn’t been predetermined in the strategy,
The stock market is open 8 hours a day, 5 days a week; the forex market 24 hours a day, 5 days a week; and the cryptocurrency market never closes. Depending on which asset you are trading, it can be pretty exhausting.
There will be times when market will reward you with several profitable opportunities in a small period of time. But get ready for the opposite, long periods of “flat electroencephalogram” charts in which the price doesn’t give you any opportunity to set an order. This can be really despairing for a trader.
Sometimes the charts will tempt you to open positions in setups that are not included in your trading system. Therefore, that haven’t been strongly back tested. On the other hand, a trading strategy will accomplish in exactly the same way that it did during its test period, what will avoid many mistakes.
Volatility is the fuel for price movements and, therefore, what makes a market appealing for a trader. Volatile markets will offer several opportunities for any trader, no matter what the strategy is, and a fast execution is key to close a position with profit.
An automated strategy will be able to open or close positions as soon as your criteria is met. Even a few seconds can be crucial for the profitability of your trading system, which gives advantage to algo trading since the reaction is instant.
If there is something you can be sure about when using a trading bot, it’s accuracy. Price and indicator’s information are data streams. Whether you trade overbought/oversold zones, moving average crossovers or any other type of indicator, your bot will open or close a position at the most precise moment according to your criteria.
Should you use them?
Of course, there might be downsides as well. However, most of them can be solved or highly reduced by imposing daily or weekly monitoring to the strategies.
Whether you should use them or not depends on your preferences as a trader, the type of strategy you are implementing and its degree of automation. What seems to be widely accepted in the trading community, is that any type of automation of your strategy can produce substantial improvements to your results.
These possibilities range from a simple stop loss or take profit, to a fully automated strategy that will trade 24/7 for you in several markets.
Smart Crypto bot
Smart Crypto Bot is a robust automated cryptocurrency trading program in the market. It’s a graphical representation of your trading style and parameters which makes it much easier to use. Smart Crypto Bot is all about the use of smart, complex and intelligent algorithms to trade your crypto coins automatically. Smart Crypto Bot is a powerful crypto trading bot that trades for you either you are sleeping, working at your office or enjoying with your family. This cutting-edge-technology helps you to become a better trader and save time while enjoying crypto profits the easy way.