There are a lot of moving parts involved in financial trading. First, you need to learn how to trade. Then, you have to find a trading strategy. Finally, you have to monitor your trades so you can take your profit when you are winning — or limit your loss when a trade isn’t going your way.
The process may appear easy on paper, but if you have been trading for some time, you’d know that it involves a lot of repetitive tasks and there’s actually a lot to do.
The good news is, with auto trading bots, you can automate your trading so that you won’t have to stare at your screen all day long.
These days, you don’t have to worry about hiring a programmer to build a trading bot for you. Technology has made creating bots easy and deploying them requires minimal effort.
In this article, we will be looking at what auto trading is, how trading bots work, and the benefits of using them.
What is auto trading?
Auto trading is a financial trading method that lets you set and execute your trading decisions with the help of a trading bot.
To build a bot, you only have to understand the basics of trading, come up with a strategy, then build and deploy your bot. Your bot will then automatically execute the trading tasks based on the strategy you built within your bot.
How do trading bots work?
A trading bot interacts with an online exchange or platform (like Deriv.com) via an application programming interface (API).
In auto trading, an API is the messenger that takes your requests, tells the trading bot what you want it to do, and returns the responses to you.
Once you enable your trading bot, it will automatically enter, monitor, and exit trades. It will also perform other actions on your behalf. All these actions are based on the rules you set when building your trading bot.
Some trading bot builders, like Deriv’s Dbot, allow you to build trading bots without needing to know how to code.
Deriv’s trading bot builder
You won’t need any coding skills to build a bot with Dbot, because the platform features an easy-to-use drag-and-drop builder.
You can create, modify, and refine any number of trading bots on Dbot. You can start with simple formulas, or create sophisticated algorithms. The trading bot you build can then do all the trading for you without you needing to be at your computer all the time.
Benefits of using auto trading bots
Your bot, your rules
With trading bots, you set and execute the rules that work for you. This means you have the power to control your trades and avoid being discouraged especially if your first trades don’t go quite well.
Bots don’t have emotions
Your bot trader will not think twice on deciding because it’s exactly what and how you set it to be. Since it trades on preset commands, a trading bot is best for those who tend to buy and sell trades at every given opportunity.
Bots don’t sleep
Bots are incredibly reliable because they allow you to trade anytime, anywhere even while you sleep. Simply set your preferred trading specifications and let your bot do all the hard work for you without monitoring it 24/7.
Bots help build a trading habit
You can always review your completed trades, analyse your strategies, and apply the same practice on your next trades. Most trading bots like Dbot also let you practise on a trial environment to help you learn the ropes. The more your practise, the more you develop a regular trading habit.
Build your first bot here. No login required.