Get Profits Using cryptocurrency Trading Robots. Is it Possible?

Robots, also known as expert advisors, are tools created by software developers to either find trading signals or execute trades. They are also used by advanced hedge funds that focus on high-frequency training. In this article, we will assess whether using trading robots like Bitcoin Trader is a good trading strategy in cryptocurrencies.

How a trading robot works

A trading robot is a piece of software that automates the trading process. It is built by simply applying the concepts of manual trading in a digital format. For example, assume that you are a day trader who focuses on buying a cryptocurrency when the 25-day and 50-day moving averages crossover on the hourly chart. 

In this case, they can create a robot that will automatically open a buy trade when the two moving averages cross one another. Similarly, a trader who opens a trader who buys an asset when the Relative Strength Index (RSI) moves below 20 can create a robot that will do that automatically.

In addition to opening trades, expert advisors can set a take-profit and a stop-loss. A take-profit is a tool that automatically stops a trade when it reaches a certain profit threshold while a stop-loss stops it when it makes a certain loss.

How to build a robot

Building a robot takes time and skill. For one, one needs to have many years of trading experience. Most importantly, they need to have experience in software development because the robot is a piece of software. 

Still, many people use the free and premium robot builders that are offered by several companies. A builder is a platform that provides a drag and drop platform that the developer can use instead of doing the real coding. These builders are easy to use and can save a significant amount of time.

However, the easiest method for using a robot is by buying it online. There are thousands of robot developers who have created robots that they sell in various marketplaces. The most common marketplace is operated by MetaQuotes, the company behind MT4 and MT5. In this marketplace, one can find all types of robots, read their reviews, and then enroll in a trial program.

Another option is to buy a robot directly from the creator. Most creators have their own websites where they sell the bots. Some sell the bot for a single price while others prefer using a subscription model. The cost of a subscription ranges from as little as $5 per month to as much as $1,000. 

This is a risky model because there is no credible method of checking whether the robot is effective. In our experience, we have seen many creators who use stock images for positive reviews.

Other robot providers like Bitcoin Trader offer the robot for free and then make money through commissions from their preferred brokers. 

Robots scams

A common challenge in the robot industry is the fact that there is a significant number of scams. These scams happen in several ways. For example, there are many developers who take other people’s robots and market them as their own. Similarly, there are people who create robots that are simply not effective and then decide to sell them. 

There are several ways to avoid these scams. For example, you can insist on reading reviews before you commit your resources to the robot. These online reviews are very useful because they are made by people who have used the robot before. 

Another option is to request a free trial before you pay for the robot. During the trial period, you should use the robot extensively using a demo account. You should then become a paying customer when you validate that the robot works as promised.

Is using a robot a profitable strategy?

A common question is whether using a robot is a profitable trading strategy. The honest answer is that it depends. There are some traders who have made a lot of money using robots while others have lost a fortune. 

For the strategy to work, you need to have a good trading robot that you have backtested for a long time. Fortunately, many trading platforms like MT5, MT5, and TradingView have tools that allow a trader to backtest and forward test the robots. 

Summary

Cryptocurrency trading robots are good products considering that they allow people without trading experience to make money in the market. When trading robots work, they are highly effective and can make traders a lot of money. For example, unlike humans, robots work all the time and don’t take a rest. Still, it is recommended that robot users work to do more research about them. Most preferably, they should conduct a forward and back-test and then run the robot in a demo account for a while.