Crypto Signals and Automated Trading
Wouldn’t it be nice to have a bot that trades cryptocurrency for you and makes money while you relax all day?
Yes, it would be.
However, that’s not something you can find on the open market right now. But there are quite a few trading bots you might use and set up to execute your strategy.
And with the help of a reliable crypto trade signals provider, you can set it up to perform to the full extent of its potential.
The combination of real-world experienced cryptocurrency traders and algorithmic trading software can be quite reliable. It can help you make your portfolio profitable with less effort than it would take to do it manually and on your own.
What are crypto signals?
Crypto signals are trading instructions you can follow to set up your trades so that you can keep your portfolio profitable.
These signals are usually provided by seasoned cryptocurrency traders that can analyze market movements and adjust their strategies according to previous experiences and technical analysis.
The better the provider is, the better the accuracy of their signals will be. However, don’t fall for the 100% success rate promises. That’s not achievable. The cryptocurrency market is characterized by volatility and sometimes by unexpected moves. Naturally, even the most profitable trader would take a loss in some trades. But it’s vital to stay overall profitable.
An 82% success rate is more realistic, and it’s more than enough to keep your portfolio profitable.
And even when the markets are all over the place, signals including realistic take-profit and stop-loss values can keep you out of a lot of trouble.
What is automated trading?
Automated trading refers primarily to trading with the help of specialized software. These bots are used in the cryptocurrency trading world as well as in stock market trading.
They are usually developed with actionable coding languages like C/C++, Python, or even MATLAB, and mainly contain a backtesting tool, a portfolio manager, a risk manager, and an execution engine.
The trading software offered by reputable companies will require you to set up your strategy to execute it accordingly. The soft still needs supervision and adaptation, but it eliminates the anxiety that comes from violent movements in the crypto world.
How do they work together?
Before thinking of pairing your crypto signals with a trading bot, you first need to make sure they are both legit. Make sure the software doesn’t go rogue and executes trades contrary to your strategy. Also, make sure the crypto trade signal provider you subscribe to gives legit advice based on analysis and doesn’t share random baseless opinions.
Once you’ve checked that, you can get to trading for real. The bot and the trading signals you receive from your provider are equally important.
As specified, the software will require you to set up your strategy. Therefore, the trading signals will offer you great insights for setting up limit orders, take-profit orders, and stop-loss orders within your bot.
And with enough adjustments from the trade signals you received, your software will improve its strategy testing capabilities (if it employs algorithmic trading.)
Now, don’t think algorithmic trading software will foresee the future. If some real-world events will influence the markets’ dynamics, you may still see some trades that don’t go according to your expectations.
Yet, the crypto signal providers may still give you trade signals in time so you can adjust your settings and leave the bot to execute the strategy further.