After a lot of friends have asked me about trade bots. I decided to document starting a new one in hopes of helping people understand what these are and how to use them. There's a multitude of platforms out there that offer you trading bots. The one I use and am most familiar with is Cryptohopper.
This week we started with $585 in trading capital. In 7 days we saw a growth of 7% with $46 in profit. That's an average of 1% profit per day. Between day 3 and 4, we actually saw it go up to 10% profit when Bitcoin first hit back at 57k. We'll get more into bot performance analysis in upcoming weekly blog posts but for now, let's explain what tradebots are.
There's trade bots for stocks, crypto, forex, you name it. Whatever financial market suits your fancy. You can build your own, buy pre-made ones, or use a platform with one customizable bot offering a wide variety of settings and templates for trade strategies.
How do trading bots work? They set parameters on trades, to buy positions and then hold to sell at positive margins. Day trading margins are set to sell closer to 5% and swing trading margins are closer to 20%. The bot holds these positions until they're profitable and then sells them around those margins.
Cryptohopper now has "Algorithm Intelligence" trading bots. Where you can combine the different parameters of trading strategies from scalping to position trading into a decision tree that chooses based off market conditions. So eventually the bot can recognize what strategies to use per market conditions.
The reason I prefer Cryptohopper over the other platforms is because it has this feature and is cheaper than its competitors offering algorithm intelligence trading bots. It has no limits on how much you can profit. It's bot integrates with almost every crypto exchange without needing to download anything. There's plenty of other platforms to choose from each with their own niche but for general use of a tradebot, Cryptohopper is Business Goals Agency choice pick.