What are Trading Bots in Bitcoin?
Since Bitcoin and surrounding markets do not sleep, it is important for traders to find software that helps monitor the market 24/7. Trading Bots help the dealers monitor the transaction each minute and passing second.
Trading Bots software is plugged into exchanges to put in place strategies when the dealers are off from their computers or busy elsewhere. Trading bots are a kind of money making machine.
Haasbot and Tradewave are software available in the market. Cryptotrader is a kind of cloud-based software. Each of the software got a varied reaction on the exchanges and consequently placing a buy or sell bid. The offers placed through software can be keyed in manually. However, they substitute the absence of the dealer.
Through pre-programming, each kind of software can bring forth one or several exchanges in the market without having to monitor the trading system continuously.
Haasbot founder gives a kind of a pre-ordering strategy where someone can purchase a number of Bitcoins and place a strategy to sell them when the market prices shoot up. Therefore, the dealer will not suffer any kind of loss.
De Hass, Haasbot director, asserts that through employing technical analysis skills, trading bots provide an advantage between those traders that use trading bots and those that do not use any trading strategy.
Trading Bots offer an insurance option through preventing the trading of Bitcoins when the trading rates have reached a lower value. If the market comes down when the trader is away, there shall be the minimal loss in their business.
Some traders are skeptical on the money making machines insisting that traders do a lot of decision making. Software cannot run on its own unless you program it to either purchase or sell a given number of shares.
The argument presented is why the creators of trading bots do not program them to execute certain functions. According to the traders, trading bots should offer a solution not just a tool for use.
Still, the outcome on individual trading Bots depends on the user themselves. Technical analysis skills are helpful in pre-programming the trading bots. It helps traders avoid loss making.
Trading bots can help any trader use the market inefficiencies such as making markets and trading arbitrary. For example when Bitcoins are low in one market channel and higher on another one, trading bots can carry out several exchanges. Arbitrary trading can be achieved through placing higher bids on low volume exchanges.
Trading bots can take advantage of market inefficiencies especially during an electronic transaction of large orders. Flashcard bot can make between five and fifteen exchanges during the day when the price of trading bots change drastically.
However, many marketers making advantage of trading inefficiencies will result in no inefficiencies at all. The Eliosoff trading fund promotes the use of Algorithmic market strategy where trading orders carry out large orders on a single exchange.
There is no sure way of gaining trading profits through bots. Each time a software tool is released in the market; soon it becomes inefficient through the vast number of users. It depends on individual traders skills on pre-programming the trading bots.