Automated trading software or differently known as trading robots have helped traders earn profits throughout their history of existence. Picking the right automated trading software is crucial to make profits.
What is automated trading software?
Automated trading software is a computer program that automatically buys and sells cryptocurrencies intending to make profits.
There are three processes involved in this software’s work. They generate signals, they allocate the risk deciding how much to buy, and they execute.
How to choose an automated trading software?
To make profits, all three parts, signal, risk, and execution, need their distinct algorithms and optimization processes involved. If you use a bot that avoids any of these processes or worse, ignores them altogether, you won’t have good chances for profitability.
There are many options out there, but not all of them are reliable. Therefore, there are some things to be taken into consideration when picking one.
Here is what you should look for when picking an automated trading software:
- Are their algorithms popular?
Try to figure out if their algorithms are well known. Algorithms should not be quite easily replicated, so be careful. If they are easily replicated, they can easily be arbitraged away also.
- Do they really care about your success?
If they just hand you over a platform and tell you to figure things out by yourself, it is never a good sign. A good trading bot should be willing to cut fees for you if you lose money. Furthermore, everything should be clear and explained very well, as shown on this Bitcoin Pro website.
- Check their reviews
The easiest way to know about the quality of a product or service is by checking its reviews. Previous users will always tell if they have had a bad experience or they have been satisfied using the software.