Trading styles
What is a crypto trading bot?
A crypto trading bot is software that executes trades from a rule without asking you first - either a strategy rule you wrote or a copy rule that mirrors a trader. It removes hesitation and reaction time, which are real costs, and it adds a new risk: a bad configuration executes perfectly, at speed, until you notice.
What a bot genuinely fixes
- Latency. It acts in the seconds where a copied entry still resembles the original.
- Consistency. The same size and the same exits every time, with no negotiation.
- Coverage. It watches while you do not.
What it does not fix
- Whether the rule is any good. A bot is an amplifier, and it amplifies in both directions.
- Market conditions. A rule written for one regime keeps firing after that regime ends.
- Your sizing. Automation multiplies the sizing mistake rather than correcting it.
The failure nobody plans for
Silence. A bot that has stopped filling looks identical to a bot with nothing to do, and a bot filling badly looks identical to a bot filling well until you check the prices. Check actual fills on a schedule. Set a maximum number of open positions and a daily loss limit that stops it. An automated system without a hard stop is a system whose worst case is undefined.
Last reviewed