On the contrary, you can instruct your Bitcoin trading bot to scrape small profits within the pre-programmed consolidation parameter on a 24-hour basis. For example, if your bot is instructed to scrape profits in a period of consolidation, it can still execute other orders that you set. It is also important to note that you are not limited to a single trading strategy at any given time. By setting clear parameters as to when the bot should enter and exit a trade, such an automated strategy is actually low risk. If and when Bitcoin eventually breaks out of the pre-programmed consolidation area, it can then trigger additional orders – such as a trailing stop loss.
Crypto Trading Guide Book
While trading at more than one exchange at any given time is not beyond the realms of possibility per-say, it’s unlikely that you can monitor the markets as effectively in comparison to using a single trading platform. If you’re wondering why anybody would need to trade on multiple exchanges anyway, this is because there will always be a slight disparity in the exact price of Bitcoin from exchange-to-exchange. For example, while the price of Bitcoin might be $10,500 at Binance, it could be $10,460 at Bittrex. In this example, the disparity in pricing is minute. However, when Bitcoin goes through a period of parabolic activity – meaning that its price goes up or down extremely quickly in a very short period of time, the disparity in pricing between exchanges can be significant.
In its most basic form, a trading bot is a piece of software that trades the cryptocurrency markets on your behalf. Before we go any further, let’s take a look at a quick example to make sure we understand how a trading bot might operate. However, it is crucial to note that Bitcoin trading bots – or any automated trading bots for that matter, do not have the capacity to ‘think’. By this, we mean that each and every move that the Bitcoin trading bot makes is based on the pre-built specificities that have been programmed into the software. In other words, the bot will buy, sell, and trade cryptocurrencies in an autonomous manner, subsequently allowing you to access multiple markets on a rolling 24/7 basis.
