Insider Tips and Tricks for Choosing the Right Automated Trading Bot

It is impossible to imagine a contemporary investment strategy that does not involve any automation. Without trading bots, you won’t be able to utilize some of the best approaches to trading crypto. Robots make traditional systems like DCA and arbitrage much easier to execute and do it with an unmatched level of efficiency.

If you want to run automated trading bots effectively and achieve consistency, you will need to pick the right type of bots for the job. The selection of great automated trading strategies that you can run using products from the WunderTrading’s catalog can be overwhelming. However, the same rich variety allows you to run something that will suit your risk style and requirements.

How to choose the right trading bot

Contemporary retail traders face a difficult choice. When you start working with a versatile automation platform like WunderTrading, you may feel intimidated by the diversity of bots. DCA, GRID, arbitrage, and copy trading bots are offered alongside AI-assisted statistical arbitrage, custom automated trading systems, and signal bots that can utilize commands from third-party signal providers as triggers.

It is one of the best trading platforms for bots in the market as you can find something that will suit your particular strategy quite easily. The general rule is to follow the basic principles of diversification. If you have a portfolio with risky assets, consider using DCA and GRID which are commonly considered safer systems. If you have assets with fixed income, you may try running slightly more aggressive custom automated trading bots.

Here are some examples of bots you can pick depending on your risk style:

• GRID bots with strategically placed delayed orders are quite good at producing smaller profits consistently if you run it within a strong trend. It is a safe investment that pays off slowly but often produces better results than many other approaches in the long run.

• AI-assisted statistical arbitrage is a novel product offered by the WunderTrading platform. It is a cutting-edge technology. A complex statistical arbitrage system is controlled by an expert AI system that learns how to manage it through intense machine learning. This product delivers consistent results and can be used to trade assets in a big portfolio.

• DCA bots can be used to buy and sell assets or accumulate coins for long-term holding. If your aim is to build a big chunk of Bitcoin or Ethereum, you can focus on DCA buying these assets without selling them. The Distributed Cost Average approach allows you to reduce the average price of purchased assets.

These methods can be quite efficient and help you create a balanced portfolio while using the best trading bots for cryptocurrency.

Trading bot tips for risk management

If you want to use these products safely, it is important to focus on using effective risk management techniques and protect your portfolio from various dangers of the crypto market. WunderTrading allows its users to adjust all sorts of bot settings to build systems that are not exposed to the risks to the same degree as automated trading systems that just buy and sell assets.

Here are some trading bot tricks to use:

• Always use delayed orders to protect your market positions. Bots usually only place buy and sell orders without protecting positions with additional stop loss and take profit orders if you do not specifically instruct them to. The WunderTrading platform allows you to choose SL/TP values in percentile points or absolute numbers. Protect all new market positions with delayed orders.

• Choose market position size wisely. You do not want your bots to place orders that expose your portfolio to unnecessary risks. By simply limiting position sizes and slightly reducing them, you can reduce the danger to your capital. If you believe that it is possible to earn more using a certain strategy, you can increase the risk by allowing your bots to create bigger market positions.

• Vigorously test your bots. The technical analysis strategy itself can be tested on the TradingView platform with the "Strategy Tester" tool. You can further stress-test your bots by running the backtesting functionality at WunderTrading. Use these instruments to build robust automated trading systems that can produce profits consistently.

If you plan to build an efficient crypto trading bot, you should also create a separate trading account to fence off any risks associated with running automation. Split your capital into sections dedicated to manual and automated trading.

Since trading bot risks can be associated with the underlying technology or general factors like economic uncertainty and unforeseen volatility, you should try employing a wide range of different risk management techniques. It is impossible to eliminate the dangers completely, but reducing the exposure of your portfolio to them is very doable.

Pick the right preset crypto trading bot

Remember to experiment with prebuilt solutions like DCA and GRID bots. These products are popular for a reason. You should not expect them to make outstanding amounts of money quickly, but they are very efficient at what they do and deliver small consistent profits. If you need a stream of passive income that allows you to keep a hand on the pulse of the crypto market, using grid bots is a very good idea.

To accumulate assets and build a bigger portfolio at a discounted price, you should use DCA bots. These robots must work on your spot market account and never sell to produce the same result as any other system that employs the distributed cost average approach to reduce the average price of assets in the portfolio.

Finally, consider running the AI-driven statistical arbitrage system which is a novel product in the WunderTrading lineup. It is a completely new approach to managing large portfolios and can be used to stabilize any composition of assets. If you purchased a variety of tokens and have them in your trading account, using this product to bring some balance to your portfolio is a sound plan.

Regardless of your investment goals, you can find something that will work for your portfolio. The WunderTrading platform has many options to choose from allowing retail traders to build unique trading strategies and form balance portfolios of automation products.