Automated trading software are bots or algorithms that allow users to automatically execute trades following a specific set of rules programmed for the trade. Automated trading software works in a linear manner. In simple terms, because you may not be there to track price movements, you instruct a bot to check specific price movements and execute orders when your target is reached. It saves time, and energy and helps users ensure profits.
It is very common with beginner traders, but professionals also use them in serious trades. Automated trading software is needed sometimes to curtail losses and grow a trader’s portfolio. Although the majority of automated trading software is not free, it doesn’t dissuade players from engaging with them.
Automated Software Rules
The rules that are programmed into the trading software are relatively diverse and compatible with specific trading platforms. The benefit of engaging with automated trading software is that it cuts human error by half thus eliminating sentiments, following strategic rules once they are triggered.
One of the advantages of automated trading software is that it instills discipline, especially in highly volatile markets. Traders usually incur losses whenever they try to make up for the deficiencies of a trade. Trading software curbs this by maintaining a strict trading rule, ensuring safety and consistency.
We will be looking into 5 automated trading software used by players in the crypto industry. This list is in no particular order of importance. The listed automated trading software have been chosen for their popularity, functionality, and packages.
Trality is one of the most popular trading software in the industry. It is suitable for beginners who want to try automated trading, those hoping to reduce manual trading and increase returns. One of the most interesting features of Trality is its Rule builder. A feature that allows you to build without writing a code.
According to Trality, the Rule builder is a tool that helps you build algorithmic trading bots by simply dragging and dropping technical indicators based on Boolean logic. The performance is checked with their historical data backtester.
After your result is tested, and you like the outcome, you can now deploy the bots on your favorite trading platform or exchange. Your bot will start scanning for live data, generating signals, and will execute trades based on your predefined rules. Trality is fast, easy, and secure.
Coinrule is another important automated trading software. According to them, Coinrule obsessively seeks out effective market indicators to enable smart allocation of funds while putting you in control of your trading machine.
Coinrule has up to 150 preset rules that you can try out, you can also make your own rule if you are familiar with the technical strategies. Coinrule can be connected to Binance, Coinbase Pro, Kraken, and many other platforms.
Cryptohopper helps you analyze the market and manage your exchange accounts from one place. The platform makes use of automated AI-powered bots to understand your trading strategies and implement them even when you are taking a break. So, it trades 24/7. The platform has a lot of pre-configured bots.
You can also copy professional traders and their strategies and apply them to your trades. They also have a training academy and 24/7 trading support.
Pionex is another popular automated trading software. It features numerous trading bots that you can use even as an absolute beginner. These bots execute specific orders when predefined market conditions are met. One unique feature of Pionex is that it charges very low fees for trade profits. The simplest bot is their Grid trading Bot. the user defines the prices for the bot with adjusted grids, and these bots will execute orders when it falls within your specified range. Their rebalancing bots are also a very good feature. This is used to set prices for multiple coins and also for holding long-term.
TradeSanta is an automated crypto trading software that is cloud-based. It connects to exchanges easily. It uses trading bots to execute known trading strategies. You connect to the exchange using API keys. Configure your bots using already featured templates or you can create yours. Then choose a coin, a strategy to trade, and target profit. Then turn the bot on and let it trade for you. Simple, easy, and quick.
A Little Caveat
Using automated trading software does not always guarantee a high-profit margin. The profit margins defer in a highly volatile market, by coins, and by working strategies. Although many of the automated software have a backtest, you should be aware that sometimes that doesn’t always work in a linear way in the real-life market and may lead to losses. But overall, trading automated software helps you remove emotions when trading, and keeps you safe from unnecessary and avoidable losses.