Automated trading bots - effective tool, which has long been used in classic trading.Natural persons, high-skilled (profesional) investors and even blue chip company such as Goldman Sachs involve bots to terminal without any risk.
Cryptocurrency - an industry in which their use is justified.
Technical review and successful trade
Technical review - range of measures, aim to forecasting using graphs estimation. It is not the last one method to forecast market direction, but it is the most fundamental and effective method.
Principle of this review developed in prior centuries and over the years traders hone these techniques. Of course, from the very beginning it used for trading on a traditional stock and exchange markets, but in this context digital token differed little and also can be forecasted.
This method is based on some basic principles, which exactly characterize either market and simplifice work with it. Exploring these principles and acts are recommended to every trader.
How technical review is carried out
Now about principales which we referred above:
- Graph provides for all factors, which able to influence on curve motion;
- Graph is cyclical, and curve motion recure with minor changes after a while;
- Graph depicts trends.
Trend - long-term motion tendency in certain direction.
By using these facts we can forecast price action, even without other information for example, if you have no idea about economic crisis and tank.
Cryptocurrencies are more volatility than traditional assets, but operated the same rules.
Advantages of technical review
Technical review has some main advantages:
- Using as independent effective forecast method;
- Implies using different indicators and tools;
- Has been studied comprehensively and described in specialized literature.
- Easier than fundamental - need not infomedia exploring, legal terrain and factors which are able to influence on asset price;
- Successful automated.
Complexity of technical review
The main complexity of technical review lies in its understanding. You need a lot of time to remember all methods there and then you will have period of adaptation and implementation.
We have an opportunity using free resources: books,books for self-education,video lessons and thematic blogs speed up the learning process. Nevertheless, at this stage big amount of newcomer traders stumble.
Trading bots use principal of technical review instead of you and make it successfully. We already mentioned that all levers of influence lies in graph and bot practically need not human factor.
What is a trading bot
Trading bot - instrument analyzing graph and conduct transactions instead of trader. There are bots:
Bot can trade in different way, it depend on algorithm,provided by developer. For this reason, not all are equally good and generate profits.
For what this decision were created? The point is that any market is permanent movement. While you go have some tea you can lose millions, this is not a joke. Not every trader can afford himself sitting behind terminal 24 hours a day. What is more, this is contradict to the basic trade principle - you should not make it your primary source of income and work of you whole life.
This is particularly relevant in the cryptocurrency market. We know that even the most volatility Bitcoin inclined to price leaping for short periods of time, not to mention altcoin.
Steve Wozniak co-founder of Apple and trader concurrently, said at once time: he sold his assets because he had no desire to constantly monitor the market.
bots help you avoid this problem: connecting to exchange through API, they trade currencies and after settings then generate profits. Some bots just notify you about market signal and recommend you to make a transaction - it leaves trader control over situation.
Bots basic setting is quite simple: you specify approximately price, in which would agree to make a purchase or sale. Bot review indicators, waiting for right moment and do everything to get generate maximum income.
Whereby you need not bother about risks and money management:all these nuances take into account.
Types of trading bots
Currently for cryptocurrency trading created some types of trading bots. One of classification - by type of trade - you already know: automated, semi-automatic.
- For scalping.There are quite a lot of such bots,as far as this strategy is very popular among big amount of traders. They created to handle a hundreds transaction during the trading day, due to which the owner makes a profit. Human doesn't able to work like this. It is impossible.
- For Martingale strategy. The bot increases its position until it makes a profit or break even.
- Flat trading. It needs minimal traders interference for range selection then it cope with the rest on their own.
- Trading in and against trend. bots for long-term transactions that open positions depending on the movement of the trend, as opposed to scalping, may not make transactions for a long time.
Number of currencies:
- For one trade tool - simpler in creating and learning.
- Multicurrency, difficult in the development and setting, trading by several tools at the same time.
In a separate group can be identified bots, which in their review can use infosphere and news which primarily related to quantitative data. It is not exactly technical review and creating them is much more difficult.
The best bots for trading on the cryptocurrency market.
When we talking about cryptocurrencies, we mean digital asset or token, which has certain material value. There are countless methods using cryptocurrency, but today we will talk about bots for making money on the cryptocurrency market.
To technical review do not apply systems, trading without indicators. They are risky enough and in position managing are based on the resistance lines.
Advantages of bots
Even high-skilled traders and international companies use trading bots. Because they have some obvious advantages:
- Bot kill two birds with one stone: getting rid trader from necessity being involved in technical review details and allow you to be distracted from terminal, without any risk to lose your money;
- Different tools are aimed at fully automated trading, but you can select just adviser, saving control over money;
- Compared to human,algorithm can analyze hundreds indicators and asset prices (котировок) lossless work quality;
- Well-designed and correctly programmed bot can`t make any mistakes. At the same time, human can make it because of psychological factors and carelessness;
- The bot can be configured, supplemented or delete some functions these things make it universal.
This tool not lose his usefulness, even in unusual situation, that happen on the market not so often. You needn`t specific skills or learn programming to use it: understanding of basic working principle is quite enough.
Potential disadvantages of bots
Unfortunately, there are not without flaws in this niche. One of them is a risk bump into a low-quality bot.
Different developer propose their products to traders, sometimes even free. But before using you have to think twice, because, perhaps, you are risking your capital.
But developer partly responsible: algorithm creating conjugate with many difficulties in the financially and in the technical implementation standpoint.
That is why traders come to idea to create their own trading bot. There are a lot of companies that engaged in this it, among which is Lab3M.
Creating individual bot
We appeal to creating own bot, when want to get professional trade assistant. For today this service used by big companies and natural persons who is seeking to make money on cryptocurrencies.
Why is this needed?
— Functionality. Finished bots, presented on the market, as usual propose only the simplest basic functions and inadequate of professional trading. By developing your own algorithm you can add additional options to it and tools in an unlimited numbers.
— Flexibility. bot like wood,unable respond to extraordinary events - direct path to material losses. Creating program for your own. you are getting an ability make it flexibility and customizable.
— Guarantees. Good developer makes his project properly and give the customer certain guarantees. In case disorders or mistakes perpetrated by bot you can count on the correction of his work.
— Transparency of the work. Developers of finished product don't explain which trades types in it - in fact, you have no idea what you trust your money and can not manage it.
— Uniqueness. You putting in your program only what you need, patterns, which you count effective, adjust everything for yourself. As a result you have got comfort and effectiveness template solutions do not have.
How to create a trading bot
Creating of a good trading bot - responsible and difficult process,which you can not have trust in just anybody.It consists of a large number of stages.
First stage. Preparative: if trader is a newcomer and had no experience with the market before, he need to learn basic trading tactics. It helps to understand how do you want to trade and what you expect from trade assistant.
Second stage.Manufacturing company selection. Take it seriously: the fate of your budget and future trade success depends on it.Applicants for developing preferably to have a portfolio with good cases and feedback from real people, but you can understand their professionality level during your conversation with team.
Third stage. Reconciliation.You are talking with worker about details of your order, gives an indication and share your ideas. Worker based on his experience assesses it and give some advices.
These were preliminary steps, followed by the process of implementing the idea.
Fourth stage.Programming language selection. In this case you should draw on the developer experience - he advise you best decision for your idea. It can be C++, PHP , or even R or some other variants.
Fifth stage. Architecture creation and optimization. At this stage bot became more multi-purpose or geared towards for sector-specific solution depending on the tasks.
Sixth stage. At this stage API is in development for opportunity to have access with leading exchanges: for example, Binance, Coinbase, Kraken, Bittrex, CEX.IO, Poloniex.
Seventh stage. Development and implementation of tools.
Apart from basic functions buy\sell you can add a lot of other options: for example, for spot or marginal trading. Further with market development you can modify and complement.
Eighth stage. Work with statistics. Data are collected, analyzed and displayed in a bot.
Ninth stage. Development of a trading model: selection and implementation of indicators, which you want to use if necessary - consultation with high-skilled traders to develop an optimal solution.
Tenth stage. Development of analyzers. At this stage creators teach bot to collect and assess information,so that on its basis make his own successful decision. It is one of the most important and difficult stage.
Progressive implementers already introducing developments artificial development for training their programs. Because of its difficulties this is a rare but effective practice with an excellent result.
These bots are available in Lab3M - bot Trade3M was created by using machine learning.
Eleventh stage. This is the final of our developments - testing of a new project. For demonstration bot is connecting to exchange and trading on a small capitals.Result depict bot`s functionality in general, but on a large investments his work may be slightly differ, mind it.
After successful test bot is ready for full use. The process of its creating take some time, but final date depend on the complexity of the project and test results - if it unsuccess, it needs improvement.
When you can create a bot yourself
Some people can create a bot by himself. To do this, you need:
- To be an expert in programing;
- To be a high-skilled trader;
- Have a large budget.
Contrary to expectations, independent development can be more expensive than project to order.
Why is this happening? The point is that in this case are a lot of complexity. one of them - work specifics. It is not enough to be a programmer - you need have experience with specific systems.
The fact is even the choice of a programming language based not on personal preferences or developer`s skills. It based on tasks which bot will do. For trading with big regular loads PHP is more appropriate but for high-frequency trading C++ is the best variant.
Creating of analyzers, which we mentioned in the previous section. This is a special part, and it's extremely difficult to re-create artificial intelligence achievements at home.
Among other issues, it will take much more time.
Unsuccessful automated trading system - direct path to material losses. If it works operational at first, no one guarantees successful transactions in the future. For this reason, it’s better to contact a specialist,who give you an excellent working version and agreement, in case of incidents.
So,automated trading assistant is an effective tool, helping in profit increasing and save time. Trader can get finished version or order the development of a unique system.
This labour intensive process, needs financial investment, but it lives up: finished bot pays off quickly. The main nicety is create a team of expert.
Staff, which had an experience in such developments will save your budget and give you effective assistant. These products created by well-coordinated teamwork in Lab3M studio - company's portfolio make an impression with the number of successful cases.
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