Statistics suggest that an overwhelming majority of traders fail. While the 95% figure was popularized by Tradeciety in relation to traditional assets, the same is true for cryptocurrency trading. That means only about 5% of all traders are in the money. One of the reasons traders fail more often than not has to do with emotions, and the mismanagement of feelings is amplified in crypto trading, given the high volatility of the market.
As a trader, it can be challenging to suppress emotions when making trading decisions. The fear of missing out, anxiety over losing funds, and the tendency to hold on to losing positions are all common emotional responses that can lead to impulsive and irrational trading behavior.
There are several ways to minimize the impact of psychology on trading. One of them is turning to automated crypto trading, which involves the use of special software commonly referred to as bots. While many newcomers have doubts about bots and might associate them with scams, the crypto market is actually dominated by automated trading, with many bots acting as arbitrageurs both on centralized and decentralized exchanges (DEXs).
How to get the most out of automated trading with trading signals
Crypto trading bots are software programs that monitor market conditions and execute trades based on predetermined algorithms, allowing for automated and high-frequency trading. Traditional financial markets have been utilizing automated trading systems for decades. In fact, as per Deutsche Bank, 90% of equity-futures trades and 80% of cash-equity trades are conducted by algorithms without any human input. Bots are becoming increasingly popular in the crypto market as well.
Some trading bots go further by integrating crypto trading signals. For those unfamiliar, crypto trading signals are alerts or recommendations that indicate when to buy or sell a particular digital asset. The purpose of crypto trading signals is to help individual investors make informed decisions, usually based on technical analysis indicators. The signals may include information on the entry and exit points of a trade, stop-loss orders and other relevant data to guide the investor’s actions.
By integrating trading signals, the bots can improve their performance and accuracy. One of the best resources for custom signals is TradingView, a leading technical analysis platform for all kinds of assets, including crypto. The platform enables advanced users to create custom indicators and signals, which can eventually be integrated by bots.
One of the automated trading solutions that integrate TradingView signals is TradeSanta smart bot. Users can apply TradingView signals to initiate or close deals while configuring a bot.
The platform enables users to connect their existing crypto exchange accounts with API keys and create their crypto bots instantly. It supports all major exchanges, including Binance, Kraken, Bybit, Coinbase, OKX, Huobi and HitBTC. That means traders can implement their bot strategies with hundreds of coins, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), and Solana (SOL).
With TradeSanta, users can leverage bots and algorithmic strategies to trade crypto like professionals without having the required experience. Novice traders are more vulnerable to irrational behavior, and automated trading apps like this one might be the right solution. In addition, the platform has a user-friendly interface, responsive customer service and a lot of useful guides and video tutorials.
For more experienced users, TradeSanta combines the benefits of bot trading with the flexibility of custom trading signals, which leverage custom TradingView indicators to trigger and close bot deals. Advanced traders also have a chance to apply trading tools like simple and trailing take profit, stop loss and trailing stop loss.
Some of the most popular bots on the app are trend-following bots, which buy and sell based on which direction the market is trending, aiming to make trades at the optimal time. What’s more, a marketplace for social trading is also available on TradeSanta. Traders can copy strategies for both spot and futures markets and settings from experienced traders.
How do crypto bots address emotions in crypto trading?
Traders can create bots based on their chosen strategy and custom signals that continuously monitor the market 24/7 and place trades. By doing so, they avoid the need to check the market constantly. More importantly, they eliminate the negative impact of emotions. Unlike humans, trading bots do not have emotions, and they do not make decisions based on fear, greed or anxiety. Instead, they make decisions based on statistical analysis and predetermined rules.
One significant advantage of trading bots is their ability to operate 24/7, which is especially relevant for crypto trading given that the cryptocurrency market is open nonstop. While traders need to take breaks and rest, bots can work continuously, monitoring the market and making trades based on predetermined rules. This feature ensures that bots can take advantage of profitable opportunities as soon as they arise, without any delay.
On top of that, trading bots can analyze vast amounts of data quickly. They can monitor multiple markets simultaneously and make trades based on multiple indicators, allowing them to make well-informed decisions without being affected by emotions.
Automated trading is a good start
Some traders may believe that automated market trading is only suitable for advanced traders that know all the intricacies of cryptocurrencies and exchanges, but this is not necessarily the case. Beginners who have some basic ideas about market orders and technical analysis indicators can start with vetted crypto trading bots to eliminate the impact of emotions and augment potential profits.
Automated crypto trading might be a good start, especially for those with prior experience trading traditional assets, such as stocks, foreign exchange pairs and commodities.
With the ability to analyze vast amounts of market data and execute trades in mere seconds, trading bots boast a level of efficiency and accuracy that is impossible to match with manual trading.
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