Trading Bot
Automated program executing trading strategies without human intervention.
Beginner-friendly explanation
A trading bot is a computer program that automatically buys and sells cryptos based on predefined rules. Instead of constantly watching the market, you configure the bot to trade for you. Example: You set up a bot to buy Bitcoin whenever its price drops by 5% in one day.
Intermediate-level insight
A trading bot uses algorithms to detect opportunities and place orders. It can be based on technical indicators (RSI, EMA) or external signals (like TradingView alerts). There are different types of bots: DCA bots, grid bots, scalping bots, etc. Example: A scalping bot automatically places small trades every 15 minutes based on RSI signals.
Advanced perspective
A high-performing bot integrates advanced risk management (position sizing, dynamic stop loss, trailing profits) and adapts to market conditions. Bots can be fully automated (autonomous bots) or semi-automated (signal-driven bots). Their efficiency depends on continuous optimization and resilience to extreme market conditions. Example: An adaptive bot reduces position sizes during volatility spikes detected by ATR.
Tools & Automation
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