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Holdex Auto Trading Bot? ✨
Holdex Auto Trading Bot (H-ATB) Terms like Automated Trading System, Mechanical Trading System, and Algorithmic Trading System all denote an automated system of cryptocurrency trading that automatically performs trading on behalf of the investors themselves according to the rules of trade entry and trade exit set by the investors. These systems are regularly used on traditional stock exchanges, with up to 70% to 80% of trades on US stock exchanges coming from automated trading systems.
The H-ATB system allows traders and investors to set rules for precise entry, exit, and money management. The bot constantly monitors the market, and precisely when the rule’s conditions are met, it performs the specified action automatically. In a way, it frees the user from the burden of constantly monitoring the market graph and eliminates the chances of users missing the most profitable point.
The trade entry and exit rules can be as simple as conditions like a moving average crossover or as complex as the strategies requiring a comprehensive understanding of the market and the system. This simply means that the bot makes it possible for all types of users. With simple rules, it allows non-technical users to make good trading rules while also allowing technical gurus to fine-tune the controls to maximize profits.
Establishing the trading rules
The platform features “wizards” that allow users to build trading rules with ease. They present users with a list of available technical indicators that can be used to build a set of rules to perform automated trading. For example, a user may program the bot to enter a long position trade once the moving average for 50-days crosses above the 200 days moving average for a five-minute duration for a particular cryptocurrency. Type of the order like market or limit can also be set, along with when the rule is triggered (like at the close of the bar or the open of the next bar).
Apart from these predefined technical indicators, the platform allows advanced users to program their own customized hands and strategies. Such users may work closely with the programmer to design unique systems that offer greater flexibility and more profitable outcomes.
Despite having so many diverse options to use existing rules or setting customized rules, the strategies for trading vary greatly, and no single control can be standardized to work in every situation.
Once the rules are set, the bot watches the markets for buy and sell opportunities depending on the trading strategy's requirements. Depending on the regulations, any orders for protective stop losses, trailing stops, and profit goals will be created automatically as soon as a trade is made. This immediate order entry may differ between a bit of loss and a catastrophic loss in volatile markets if the transaction swings against the trader.
Advantages of the H-ATB System
There are several advantages, including the following:
Minimizing emotional influences on decision making
Being a fully automated system, the H-ATB bot prevents the emotional surges influencing the last-minute decisions that sometimes may lead to blunders resulting in huge losses. Sometimes it also protects users from overtrading -- a practice of buying and selling at every perceived opportunity.
Backtesting evaluates the viability of an idea by applying trading rules to historical market data. When designing an automated trading system, all rules must be absolute, with no room for interpretation. The bot must be instructed precisely for what it has to do. Traders can use these particular sets of rules to test them on historical data before putting their money at risk in live trading. Backtesting allows traders to evaluate and fine-tune a trading idea, as well as determine the system's expectancy – that is, the average amount of money a trader can expect to win (or lose) per unit of risk.
Discipline is maintained even in turbulent markets since trading rules are set, and transaction execution is automated. The field is often lost due to emotional reasons, such as fear of losing money or the desire to squeeze out a bit more profit from a transaction. Because the trading strategy will be executed precisely, automated trading helps to retain discipline. Furthermore, "pilot error" is reduced. For example, an order to purchase 100 shares will not be mistyped as an order to sell 1,000 shares.
One of the most challenging aspects of trading is planning the transaction and trading according to the plan. Even if a trading strategy has the potential to be successful, traders who break the rules change the system's expectations. No trading strategy consistently wins. Losses are, after all, a part of the game. Losses, on the other hand, maybe psychologically traumatic. Thus a trader who has two or three losing transactions in a row may opt to forgo the next deal, which may have been a grand victory; the trader would have already destroyed whatever hope the system had. Trading the strategy using automated trading systems allows traders to attain consistency.
Improving order entry speed
Algorithms can trade at ultra-fast speeds eliminating the risk of skipping the best moment to trade. Getting in or out of a trade only a few seconds earlier may potentially make significant differences in the trade’s outcomes. All additional orders, including protective stop losses and profit targets, are automatically created when a position is placed. Markets may move fast, and it can be discouraging to see a trade hit a profit goal or blast beyond a stop-loss level before the orders can even be placed. This is avoided by using an automated trading system.
H-ATB allows the user to trade several accounts or strategies at the same time. This provides the privilege to distribute risk across several instruments while also providing a hedge against losing positions. What would be very difficult for a person to do is effectively carried out by a computer in milliseconds. The computer can search for trading opportunities in various marketplaces, create orders, and monitor transactions.