Many times, as soon as traders finally gather-up their courage to take their trading strategy live, they soon find themselves surprised to discover that what works perfectly fine in theory doesn’t necessarily unfold according to plan when it is most important– actual live trading.
While there are many possible reasons for this common discrepancy between back-testing and trading live, it’s safe to assume that the leading cause is usually the execution of the strategy in the markets. This is why an ever-growing number of crypto traders have started using trading bots and other automated tools to ensure that their trading schemes are implemented in almost the best possible way.
As relentless and disciplined digital assistants that never go to bed, a trading bot can enter and exit trades much faster than humanly possible. This alone can guarantee traders that every trade’s potential is maximized to its fullest potential.
The advantages of trading bots are much more than speed and accuracy. Advanced automated trading tools offer traders a wide range of features and capabilities to help crypto traders elevate their trading skills.
To start with, advanced automated trading tools are designed for giving traders a simple way to efficiently diversify their portfolios and positions. Diversification is a highly recommended method to mitigate the risk of being dramatically affected by worsening market conditions or even black swan events when trading assets with high volatility like cryptocurrencies.
Thanks to the capability of automated trading tools to effectively monitor multiple exchanges while simultaneously managing and executing trades, traders are able to be focused on numerous assets on more than one exchange and with various different trading styles. In theory, this should help traders minimize drawdowns, which improves their net profitability and overall returns.
Furthermore, the option to configure their entire strategy in advance while customizing it to their specific trading goals and risk tolerance means traders are managing not only their portfolio better but also (and maybe more importantly) their emotions.
With a well-organized strategy, traders are essentially never rushed to make decisions that can be affected by stress, emotions, or poor judgment. With a well-defined plan, traders are not overwhelmed or surprised by market conditions. Instead, they can relax as they implement their strategy.
The advantages of trading bots to crypto strategies and portfolios don’t end there. Another great feature that some of the more advanced automated trading tools in the crypto world offer is the option to follow and automatically copy the trades of experts. Without going into too much detail, there are services and complementary automated tools that enable traders to delegate most of the heavy lifting associated with active trading without compromising their overall returns, possibly even improving them. This niche inside automated crypto trading is often referred to as signals trading, but other names like auto-copy trading or copy expert trading are also common. In any case, this trading method is yet another promising way for traders to explore and implement a more accurate and less time-consuming way of trading cryptos.
In summary, trading with crypto trading bots has many advantages over manual trading. From managing portfolios and emotions to faster execution and more advanced options for diversification, there is no shortage of ways automation can enhance your trading strategy.
In 2024, humans can’t compete with automated crypto bots’ wide range of capabilities. Our advice for all traders looking for a cutting-edge solution to enhance their crypto trading strategies is not to fight the revolution but to join it.
