Topic: Trading bot for beginner? (Read 217 times)

Trading bot for trading is really useful among traders, because it may help you to earned profit without investing so much effort in monitoring the price in market.  Trading bot is a type of artificial intelligence (AI) that monitors directly with the financial markets, bots will make their own decisions and and analyze the market actions such as price, orders and time and it will be programmed that will suits your own preference. Not just like in the stock markets the crypto currency will never stops nor sleeps because it will operate time to time and it can be a highly stressful for traders if they don't used a trading bot.

Hello,

I have extensive experience using trading bots. I have used trading bots in the stock market several years before going into Cryptocurrencies. When I got into crypto I came across Cryptohopper and I have stayed there ever since as a signaler.

I have some general advice that I can give you when starting out with a trading bot:

Know at least some technical analysis and have at least some experience in analyzing charts.
Clearly lay out your strategy (this includes where your take profit is, stop loss, trailing stop loss, and which technical indicators you are going to use)
Backtest your strategy (I know Cryptohopper has this feature for cryptos, I don't know about the others because I have not used them). This is useful, so you can have an idea of what your strategy would have accomplished in the past X days.
Try out your strategy using a paper trading (simulation) account.
Finally, try out your bot using limited funds at first.

Best of luck!

I 2nd demotion this one...

@OP it is not a harmful one actually to try using trading bots as a beginner since you are still acquiring knowledge and find a suited place for you but you should have not also to think that you can make it easily without clearly understand the basic trading. And I suggest that you better have to learn it first as a must thing to do before you'll go for another step. Trading isn't just a simple artwork that you can play around and portrait something but this trading is involvement between you ( your knowledge) and money which I'd say that having a single mistake in all the decision you've made will cause losses and I know you don't want it to happen.

I will echo the sentiments of more experience traders here.

Bot are not for beginners, you need to have basic to intermediate knowledge of trading before you can fully understand how a bot works. Well you can get one, however, it will take you some time to familiarize yourself with the bot setting that might cost you money to lose in the short run. You can put that money to trade it yourself and once you gain the experience and some knowledge then probably you can try any bots out there.

If you've already got any sort of experience in trading and you have some sort of strategy in mind to trade with, almost any trading bot should be sufficient as long as you're willing to take the time to learn a few of the basics of whatever bot you end up choosing. Some of the more popular trading bots around here are Gunbot and Haasonline, and both of them offer very detailed documentation on how to operate and setup your copy of the bot. I personally own Gunbot, and I find the bot's UI to be very simple, though the tricky part is figuring out what strategies you'd like to automate.

I would agree that the default strategies offered with the basic installation of most trading bots won't get you very far if you just plan on running them and earning money doing nothing, but they can be a good place to start understanding how these various strategies work and how you can modify them to your liking.

1. Watch your bot
To successfully trade using the bot, it needs to be managed. It is necessary to regularly check its activity: how well it works in a specific market situation. Keep track of your trading pairs, analyze charts and check the news from the world of cryptocurrencies so as not to lose your investment.

2. Limit risk

Define a limit: the amount you are not ready to lose more. To do this, you can create a separate account for the trading bot on the exchange

3. Beware of scammers

Examine the bot information before using it. Check how long it has been on the market and what reviews it leaves. This can help avoid fraud and protect your money.

Never trust bots that promise you income after depositing cryptocurrency into their “smart contract”. Real bots should only work through your account on the well-known cryptocurrency exchange. You should see all the deals and applications of your bot. The bot cannot independently withdraw money from your account. Permission to execute transactions should always come from you - through the chosen trading strategy.

Top 5 bots 2020:
- cryptohopper
- gunbot
- 3commas
- Haasbot
- Cap.Club

4. Automate your statistics and risks.

Always be aware of what is happening on your account. Install the tracker application to track all the information on trades and analyze them. Set several types of risks and set the function of special notifications that come to you in case of reaching the risk limit.

Software example:
https://www.bitinsure.com/

Trading bots can save time, speed up trading activity and help make a profit. However, you can not leave the bot unattended - they need to be used consciously. It must be remembered that the bot is not a trader. Only a person decides which strategy to use, as well as what and how to trade.

I could say that I have used multiple bots so far and I can honestly tell you that any bot you use will no longer be a bot that is for beginners, if you are a beginner for bots but not a beginner for trading that means you can use them but if you are a beginner of trading you should first do it yourself and see what could be better for trading or not.

Just to give an example all bots have a thing they buy and sell for, it could be MACD or Bollinger band or anything basically and you should yourself first do it manually yourself and see what could be improved and what they are and only after you learn how the bot works and do it manually, if you are happy about it and think that doing that 24/7 without stopping would profit you, then you should go buy one.

You can do a simple research online about it and some free and premium bot providers, a trading bot is not recommended for newbie users and users who are not sure about what trading is and doesn't have any knowledge about theories of trading, risk of trading and lastly doesn't know any strategy to be used.

Trading bot can be effective if you know clearly what your intention in the market and what kind of strategy you wanted to implement through your bot, however there are some bots that has a built-in strategy to load but I think it's better if you have your own strategy on where you can take advantage to the market.

Trading bots aren't for beginners. If you can't trade really well to start with(I assume, because of your question), you're prooobably going to do worse with trading bots. Trading bots are just being used by traders to automate some of the stuff they're doing; and they frequently tweak the software here and there to hopefully make it better.

And also, trading bots aren't something you just turn on and pretty much prints money.

Lastly, just so if you're actually a good trader already(though I doubt it, no offense), here's an open source one that you can modify to your liking: https://gekko.wizb.it/

There are tons of articles about this. You can use a simple Google search with a query like "trading bot for beginners" and you'll see them.

Regardless of what you're looking for, you still need to have some basic understanding of trading indicators to use a bot wisely. It's not a magic tool to increase your profits with one click.

For those who have a clear idea about it, I'd appreciate it if they wrote a story about it.