Technology

What is a Crypto Trading Bot? How does it resemble a dollar box?

What is Automatic Crypto Trading?

So what is automatic crypto trading?

If you have ever traded in stocks, CFDs, crypto, etc., you need to learn and adopt a trading system. This system may be based on a technical analysis of the chart and you will have to sit in front of the computer screen every time you decide to make a trade.

Most people see most of the day trading day on the screen.

Now imagine you hired an “expert” to trade with you. This expert looks at the charts for you and trades for you based on her extensive trading experience. And at the end of every day, she reports how much she earned (or lost) for you while sitting on the beach drinking coconut juice from the Gold Coast of Australia.

This “Expert” is a computer program called “Expert Advisor” or “Bot” Trading, which is (mostly) used only for trading in the crypto market.

So, in a nutshell:

Automatic Crypto Trading is the act of buying and selling currency pairs in the crypto market using a computer program.

The platform on which this “Expert Advisor” runs is MetaTrader, and most crypto brokers support the Meta Trading Platform.

So what’s the catch if automatic crypto trading is about getting you a robot to make money in the market while you sleep?

Bad person

Not all expert advisors on the market today are profitable in the long run. Even “good” advisors need to be properly managed and configured to run smoothly. Your capital will increase over time.

Therefore, beginners who just got a new “Kick-Ass” bot, can lose money due to lack of testing, poor configuration, and lack of proper money management.

Good things

But the good news is that if you take the time to test your bot’s properties, make the right settings, make monthly adjustments, and develop a conservative money management strategy, you can get great benefits from trading your bot in the long run. That is.

If done correctly with trading bots, you can earn passive income.

Making 5-10% (or more) of money each month is highly achievable, which is about 79% to 313% per year. This is a big payoff, compared to Australia’s average time deposit of only 6% per year at the time of writing.

That is, you are conservative and use a return on investment of 79% per year. If you invest $ 5,000, you’ll have $ 28,676 in three years.

And all the while, I didn’t do anything other than check the bot every month.

What do you need to start?

Now that you know that a crypto bot can be a “Cash Cow”, how do you get started?

Well, you need three steps:

1) Sign up for the broker

There are many brokers out there. See below for a list of recommended brokers.

Keep in mind that brokers impact performance. Be sure to investigate as some brokers have smaller spreads than others and some brokers can tear you apart and create artificial spikes to push your bot into a stop-loss trigger. please.

First, create a demo account with that broker.

After downloading the broker version of Metatrader 4, simply follow the instructions to install it.

Once installed, open the application and try the interface.

2) Get a bot

There are many bots available for download online, some for free and some that you have to buy. There is a recommended list of bots to use. See below for more information.

Be sure to read about bots before choosing them.

Once you have your bot, all you have to do is copy the bot’s source files to MT4. This procedure is easy, as most bots will guide you through the installation.

3) Test the bot

No matter how good your bot is, you need to do some backward and forward tests on your bot before giving it money to actually play. Once installed, open the application and try the interface.

MetaTrader 4 has a function called called “Strategy Tester”. You can use it to feed historical data to selected bots and see their performance. This is called a “backward test”.

Crypto Trading Bot-Hype and Truth

I want to be honest with you about the crypto trading bot (someone should be). If you have browsed the crypto website enough, you’ve probably heard about Forex trading bots, and you’re completely surprised at what they can do.

They are foretold as the Holy Grail of Transactions (do you like the word?). You can certainly understand why this is the case. After all, you are automatically talking about software that trades crypto markets for you. Who doesn’t like it? The harsh truth is that not many traders are successful in crypto trading bots. 

Final idea

I hope this short article gives you insights into this exciting industry, but I’ve only scratched the surface.

For more information, subscribe to my newsletter by subscribing to the following information:

1) Bonus material on the best free bots currently available and backtesting results showing how much money this bot can make for you. And yes, I’m using this bot myself.

2) Send me a link to my crypto Trading Bot Blog with more valuable information about:

  • List of recommended bots I use
  • How to backtest your bot
  • How to minimize the risk of using a bot
  • List of recommended brokers offering very low spreads

Read More: What Are Crypto Trading Bots? Top 5 Crypto Bots To Start Automatic Trading!

Rabia Khatun

I am Rabia Khatun, I am a freelancer

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