The Bitcoin Auto-Trading System, also known as BATS, offers the users a chance to place trades while having complete risk management. It is a system that automatically carries them within the trading volumes that the users choose, and it pauses until the next day when the selected limits of profit and loss are reached. In this manner, they are able to only use money that they want to risk.
Some people prefer using such bots because, in a lot of cases, they are more effective than people when it comes to carrying out trades. In theory, trading bots make purchases and sell in the user’s behalf after interpreting the market data – prices, volume and so on, but also giving you the possibility to program it according to your own preferences. For instance, a lot of bots use EMA (exponential moving average).
An average tracks price fluctuations over a given period of time, and you can decide how the bot will react to these changes. However, it could be more advantageous to use a DEMA or TEMA, which are double and triple exponential moving averages – these usually respond faster while making similar calculations.
Before choosing your preferred bot, there are some things to be taken into consideration. One of the most important factors is reliability – you could go for a company that has already tested trading bot strategies, and which has numerous clients satisfied with the outcome.
Also, transparency is a big plus; you should know how the company runs their business, making sure that you won’t throw your money out the window by signing up. If you’re not tech savvy, you may want to choose one that’s easy to use as well.
Bitcoin is a safe crypto-currency, so, before choosing to invest, make sure that you know how to profit from all of its advantages.