Trading bot
The trading bot is a computer program which will help to that will help traders by automatically placing orders in a market or an exchange, and this happens without any human involvement.
This trading bot runs as a one-liner which may lead to either profit or loss.
But if we consider about it deeply trading bot it's a complex program which analyzes feeds from various sources at real-time and then places an order. The scale and the scope of a trading bot are varied.
For a trading bot to be effective we can consider the following features
Consumption of market data or external news events and social media feeds to analyze them within a system.To have a definite strategy that provides a trading signal. Placing order based on the trading signal. Trading account management Trading Position Management Monitoring and alerting features Ability to handle events on an exchange platform such as order filled, Stop loss etc,. Basic risk management abilities
The need for the trading bot-
Most of the exchange platform has services such as placing order and trading facility, Account as well as position management, Historic market data, Callbacks for trades, orders or account events, Authentication processes, etc. The trading bots helps to generalize this in a framework and provide the exchange platform-specific implementation ina run time.
The works carried out by a trading bot includes
Management of account integration with the real-time market data feedDissemination of market dataHandling trader orders/ Account events integration with TwitterDevelopment strategies for improvement
The most popular automated Crypto trading bots include
3 commas
Cryptohopper
Shrimpy
Profit trailer
Crypto trader
Has online
CryptobotMargin
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