Experienced traders always feel subtle fluctuations in the stock market and can earn a fortune from it. But even they admit that trading bots can do it no worse, and in some cases even better. BeFund specialists have developed various bots for trading on cryptocurrency exchanges and are convinced that any actions required by customers can be programmed. Now we will talk in detail about the advantages of such programs and prove that the bot will be useful for both beginners in trading and experienced professionals.
Briefly about trading bots
In general, the idea of making programs trade instead of people is not a new idea and appeared immediately, just like programming itself. With the spread of social networks and services for communication, bots began to actively appear there and sell goods and services to users on behalf of their owners. It is natural that players on exchanges, where a quick and appropriate reaction is always required, seek to take advantage of this technical achievement.
From a technical point of view, a trading bot is a program written to perform standard buy-sell operations, reacting to appropriate triggers from the outside and making predictable decisions: sell or buy. Such programs can be located anywhere: on your computer, in your smartphone or on a separate server. The main thing is that the bot can interact with the API of the exchange on which it performs activities on behalf of the trader. And one of the advantages of using bots on crypto exchanges is their constant availability. Indeed, securities trading takes place on a fixed schedule, the popular Forex exchange does not work on weekends, and any crypto exchange works 24/7, which allows you to use the bot continuously.
Software can be created in almost any suitable programming language. However, if you plan to develop your “assistant” and, say, strengthen it with the use of machine learning, the list of technologies will be somewhat reduced. We at BeFund practice creating trading bots in Python, which allows us to scale the program’s task pool and use artificial intelligence.
Speed of decision-making
The rates of any assets are usually quite volatile. A trader always needs maximum attention and a quick reaction in order not to miss an important moment when the rate will creep up or fall down. After all, every minute of delay in this case will lead to the loss of money, regardless of whether it is a purchase or a sale. That is why the trader’s attention should be focused on the chart, and what if there are several of these charts at once? Then the influence of the human factor increases twice, and so with each new direction of trade.
Another thing is the program. To perform actions and make decisions, she needs not minutes, but fractions of a second. It is clear that no human is capable of demonstrating better results in calculations than machine code, so the question of speed is definitely decided in favor of the bot.
It is this ability that is at the heart of scalping — perhaps the most popular trading method for bots on crypto exchanges. The essence is quite simple: the bot closes a transaction with a minimal profit, even a few cents, and immediately opens a new one. In an hour, such transactions can be hundreds of times more than a living person could do the same. Therefore, the scalping strategy gradually, but guaranteed, turns quantity into quality, that is, into guaranteed profit. The same approach is used in day trading – another typical one, when deals are opened not as much as in the previous one, but in a specific period of time, usually a day.
For long-term investments, speed is not necessary, but this does not mean that bots will become redundant here. After all, the programs not only perform certain actions, but also constantly monitor the situation on the stock exchange and analyze the data with the algorithms embedded in them. Our team implemented a project to develop a special bot for the crypto exchange, which, according to the intention of its customers, did not engage in buying or selling at all. This program tracked trends and generated daily reports for the owner. But at critical moments, the bot notifies our client about important changes in the selected messenger, regardless of the time of day.
Advantages of a custom bot
Already today, trading bots for crypto exchanges are used much more widely than you can imagine, and their effectiveness is growing every day. This is confirmed by the offer from numerous services that offer to rent bots. The average check for such services is quite high, and it is almost impossible to use the bot for free. The services offer ready-made bots tested by many operations, in the algorithms of which experienced traders can introduce certain conditions of their own. However, users usually have the option of copying successful bots – programs that have shown good results in recent times. It is clear that this is possible only if the stock exchange is relatively stable. Therefore, if there are significant changes to the schedule due to external factors, the copied bot is unlikely to be able to show the previous efficiency.
The experience of BeFund developers proves that effective solutions are actually based on successful methods of traders themselves. In this case, the bot becomes an automated reflection of a person with all his skills, multiplied by the capabilities of the program. Therefore, digitizing the unique experience of a trader when creating a custom bot shows much better results than a solution based on theoretical knowledge of the market, exchange and cryptocurrencies.
As an example, we can cite part of the functionality of a custom trading bot that is being developed for a client from a prosperous Asian country. Before the main cycle, there was a function that checked the prices of the FTX exchange via API and checked the indicators of the currency balance in the client’s wallet and followed the requirements of the exchange regarding the frequency of access to its database. The cycle itself was divided into four parts: the actual trading, checking for closing trades, generating a report in the form of a CSV file, and clearing the variables before executing the function again and starting the cycle. The possibility of trading is determined by a whole list of conditions that our client considers acceptable for concluding a deal. This is fundamentally different from the scalping method, where the only condition is at least a minimal profit. We also used Python to create the bot.
Thus, the help of bots in trading on cryptocurrency exchanges can be an invaluable advantage over other players. Beginners can safely use the “assistant” 24/7 and study the features of the exchange and the selected asset to improve the bot in the future. And a professional trader can implement the experience gained in a trading bot and achieve extraordinary results without wasting superhuman efforts. BeFund developers will help you develop your own, unique and effective trading bot, which brings you profit 24/7 and always warns of possible risks. Contact us and earn more right now!
