Trading cryptocurrencies isn’t easy. This is because unlike stock markets, cryptocurrency markets don’t close, and this presents a very stressful scenario for both casual investors and seasoned traders in the industry.
The cryptocurrency market is also very volatile. If you’re a crypto investor, you’re probably familiar with the (sinking or pleasant) feeling of waking up to massive losses or large gains in your portfolio.
So you need a strong tool that gives you an edge. That’s why we created EngineeringRobo.
There are now over 400 Algorithmic Trading Robots available in the world, and more of them are launching every year. All of them provide different combination of buy and sell signals for Forex, Stocks, Commodities, Future and Crypto.
Algorithmic trading (also called automated trading, black-box trading, or algo-trading) uses a computer program that follows a defined set of instructions (an algorithm) to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader.
At the most basic level, an algorithmic trading robot is a computer code that has the ability to generate and execute buy and sell signals in financial markets. The main components of such a robot include entry rules that signal when to buy or sell, exit rules indicating when to close the current position and position sizing rules defining the quantities to buy or sell.
One of the biggest concern that surrounds automated trading platforms is how well they keep client funds safe.
Unlike others, You have full authority on your investment with EngineeringRobo. We strongly believe that your money is yours. Only you have access to your funds — securely held at the exchange of your choice, we do not have any access to your account.
Cryptohopper is a newcomer to the automatic trading scene but has been rapidly growing in popularity for several reasons. For one, they are the only cloud-based cryptocurrency bot on the market, meaning their bot continues trading when the computer is off.
This is a trading bot that was created by HaasOnline back in the beginning of 2014. The trading bot is supported by many Bitcoin exchanges including Bitfinex, Poloniex, BTCC, Huobi, Kraken, Gemini and GDAX. It not only trades Bitcoin but altcoins as well on the various exchanges.
Fast execution. Cryptocurrency markets can shift extremely quickly, and some opportunities last only seconds. Robots can automatically process and act on information that humans can’t.
Reduced human error. Manually entering trade details yourself always introduces the risk of human error. By automating trade execution via a robot, this risk is reduced. Just make sure you don’t make any mistakes while setting up the robot.
Take the emotion out of trading. Effective trading is about having a plan and sticking to it, rather than running with gut feelings. Crypto trading robots take emotion out of the equation and react to pure data only.
Ability to diversify. Using a robot can allow you to trade across numerous accounts or try out various trading strategies. This can help you spread risk across a variety of crypto assets.
Backtesting. Want to test a trading idea? Use a robot to backtest, which is where you test your strategy using historical market data to see how it would have worked. You can also paper trade, which is when you use a robot to trade pretend money against the markets of today.
Poor-quality software. The quality of software varies from one robot to the next and using a poorly coded robot could cause you to lose money. That’s why you need to look for a reputable bot with a proven track record of success.
Bad strategies. The financial market is constantly evolving and trading strategies need to keep adapting to achieve success. If you choose a robot with an outdated or simply inadequate strategy, or match the wrong robot and signals, program it incorrectly or otherwise make mistakes, expect to lose money.
Failing to follow “Sell “ signals. In the event of a “flash crash”, where the price of a cryptocurrency / stock plummets rapidly, traders that have not follow sell signals could potentially suffer heavy losses.
The most important thing to highlight when it comes to cryptocurrency trading robots is that they are not a one-stop passive income solution that will make you money in your sleep. The bots that promise you that will most likely turn out to be scams and will end up losing you money.
The more sophisticated crypto trading robots allow you to set specific parameters at which the robots execute trades on your behalf. These parameters need to be backtested as well as adjusted as you go.
The cryptocurrency market is growing and evolving on a daily basis. Hence, trading strategies need to be updated and adjusted to function in new market conditions as well.
It is possible to generate a trading income using bitcoin trading robots. If you deploy the right strategy and regularly adjust your robot’s settings, it can be a great tool to help you with cryptocurrency trading decisions.
However, crypto trading robots are by no means a set it and forget it solution and should only be used with small amounts of capital as the risks can be higher than if you simply trade yourself.
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