An automated trading system is a software that allows users to place trades automatically and it can either run on a desktop, on the cloud or on a mobile phone. Some of the features commonly associated with cryptocurrency automated trading are “take profit” and “stop loss.” Most automated trading algos allow for the users to set a targeted profit as well as a maximum loss amount. Once a trade is executed, it will either stop a take profit stage or at the stop loss stage. However, some bots also have a “trailing profit” feature which allows the trader to maximize profits as the price surges beyond their targeted profit levels. Automated trading systems can, therefore, help traders to get more profit than if they were trading manually.
For the most part, the success of an automated trading app fluctuates on a daily basis depending on the prevailing market conditions. Trading algorithms often try to use the trends in the market to guestimate the expected price movements. However, trend analysis only works efficiently when the markets are not very volatile. For volatile markets, more studies are incorporated into the decision making tree. These include the use of indicators like VWAP, Bollinger bands, RSI, etc.
Most people who attempt to trade are actually not very knowledgeable in trading. This is actually one of the reasons behind the popularity of automated trading systems. It makes perfect sense for a novice trader to use an algorithm that will guarantee them consistent wins on the market. But this is not to say that trading algorithms are only for beginners. In fact, the more experienced a trader is, the more profits they can reap through a trading algorithm. This is because the more experienced traders can set the automated trading system to execute their tested and proven strategies.
Using automated trading systems on the stock market is a very complex and expensive affair but this is not the case in cryptocurrency. Most of the reputable exchanges for cryptocurrencies allow users to have API access and traders can connect to multiple exchanges via these APIs. Some systems allow for social trading. This is a system that allows less experienced traders can follow and copy the traders of more experienced traders. To put it simply, it is extremely easy to use automated trading systems on the cryptocurrency market.
Executium is one of the best automated trading systems. It boasts of lightning speed executions and offers a variety of unique features that have completely revolutionized the online crypto trading industry. For starters, they have an awesome signup bonus - each new customer is given 0.002 Bitcoin that is free and with no strings attached. Once you sign up, you can begin executing different strategies immediately including arbitrage which you may not find in some other popular automated traders. Apart from arbitrage, you can also try out directional trading or any other day trading strategies. Directional trading is where you make trades based on where you believe the market is headed after doing some market analysis and study. In simple terms, Executium gives traders a competitive advantage in the market.