A scalper bot is yet another kind of automated trading tool, which is used a lot in crypto trading these days. Scalping is the practice of trading, where the investor tries to gain on the small price changes, usually after the trade is placed, and this requires a very strict exit strategy. A single impulsive decision, or a single trade deal made out of over confidence, can ruin the whole of profits that the investor would have made so far. And that is the reason scalper bots are very popular for making such trades, as they are devoid of the human emotional component, and also work exactly as directed.
What is a Scalper Bot
So as to understand what is a scalper bot, it is good to understand how does a scalper bot work. A scalper bot is usually deployed in a horizontal market, where small changes happen very quickly. Basically, a scalper bot would try to scalp prices. The order book is impacted with these small changes and small trade orders, and thus the bot works in a way to enhance the profits of its client. The size of the profit is not a consideration for a scalping bot; nevertheless, it tries to maximize the number of trades that would result in profit, even if they are small. So these are more suitable for small investors, who want to quickly grow their money, without taking bigger risks.
Principles behind a Scalper Bot
The main reasons why scalper bots are used so commonly, even by small crypto traders are the fact, that one, the lesser exposure to the market, also lessens the risk of loss. Second, it is easier and faster to execute smaller orders and third, there is more frequent a scope for many small profitable trades than some bigger profitable trade in one go. As a result, investors understand that this trade bot would find more applicability as compared to the other types of trading bots that are available these days.
Crypto and Scalper Bot
Scalper bot is especially useful in the crypto market, because the crypto niche is fast and unpredictable. One can bear millions of losses in a few hours, and one can gain huge sums of money in the same few hours. So scalper bot, that works on small fragmented pieces of trades, is very much suitable to this field especially. A Scalper bot usually looks for a larger bid ask spread to place the trade. So this is more of a short term trading strategy, and the traders who want to trade based on long term goals, use scalper bots as supplementary help.
The Best Scalper Bot
If you are lucky to get yourself a great scalper bot, the little by little profits that it makes, can add up to an ocean of money. However, this choice is tough, as we see new players venturing in every other day. Most of them are there just for the sake of it, with some very basic versions of the scalper bot, which would not do you much good. Executium.com can be an online service provider, which is both adept and genuine, where if you invest for some trading bot, you are sure to see some positive outcomes.