Hi, ladies and gentlemen, welcome to Uncle Cat Talking Money. Uncle Cat was invited to participate in the square event to share with you related content about DeFi. Today is the second article. Today I will grandly introduce to you the intelligent trading system: CryptoTradingBots
What are CryptoTradingBots?
CryptoTradingBots is a cryptocurrency trading robot in Chinese. It is an automated trading software that can conduct cryptocurrency transactions according to our predetermined strategies. These robots can automatically, frequently and accurately conduct transactions during the period when we cannot keep an eye on the market.
The usage scenarios of trading robots are very bear market shocks with low market liquidity and low volatility, because under such conditions, many traders have lost enough patience and will make their transactions emotional. Everyone knows that once trading becomes emotional, it is easy to suffer high-risk losses and liquidation.
The trading robot will eliminate any emotions and strictly follow the trading strategy to trade, which will make the entire transaction more strictly maintained in accordance with the strategy.
I believe that many friends have encountered this kind of thing. Obviously their strategy is correct, but because of the recent failure of transactions, their mentality is unbalanced, unable to hold on, or they want to run away when they lose money, and ultimately miss the opportunity. Trading robots can completely avoid this situation.
In fact, as a strategy analyst, I rarely use this kind of trading robot. In order to give you a real experience introduction, I specially found my fans, who have been trying trading robot trading in the past six months. In fact, it is the quantification that we usually come into contact with. Through my simple understanding with fans, I will share with you the advantages and disadvantages of robot trading.
Choices and Settings:
In fact, the core of trading robots is strategy. If you can write a set of strategies that are more suitable for the current market conditions, you can make good profits. In terms of choice, my fans choose Binance’s API interface, which ensures stability during the transaction process. After all, compared to similar exchanges, the stability and technology of Binance Exchange are still second to none in the industry. But the trouble with the API interface is that you need to write the strategy yourself and let the robot execute according to the strategy.
The choice for retail investors is relatively simple. You can use Binance’s grid robot. At the same time, there are many different strategy types in the process of selecting the grid. You can intuitively see the profitability of each strategy and choose a highly profitable one. Doing it may be simple and straightforward for many retail investors.
Experience and Results:
Although I personally have not used Binance’s grid robot, I can tell you about the profits of my fans after adding strategies through Binance’s API.
Through one month's calculation, they found that the monthly profit of 100,000 RMB is about 7,000 RMB. Many people may think that the profit ratio of 7% is not much, so they might as well make their own contracts. But you have to know that this is when the amount of funds is not large. What if your capital is 1 million U or 10 million U?
After understanding the situation of the fans, they cooperated with several old players and invested tens of millions of dollars, so the 7% monthly income at this level is still very scary. Moreover, this type of trader rarely has time to keep an eye on the market, let alone stay up late to watch the market. Through robot trading, they only need to hire employees to work 24 hours a day to keep an eye on the normal operation of the machine, and the rest is to wait for the profits. You don’t have to study the market yourself, the strategies are written by several professional analysts. No need to keep an eye on the market at all times, the robot works 24 hours a day. The lowest profit is also 7%, which is still very good.
Advantages and Challenges:
In fact, for trading robots, if the amount of funds is large, there is no time to watch the market, and what is sought is relatively stable income, and there are relevant professionals who can write strategies, then the quantification of the increased number of robots may occur. Better results.
For retail investors, if the market fluctuates like the recent bear market, and you are unable to judge the point of the shock, nor can you grasp the small fluctuations during the period, choosing Binance’s grid trading may allow you to obtain more subtle profits, although each time The profit per transaction is not much, but the profits generated from continuous transactions are still very objective.
Overall, the excellent capabilities currently displayed by trading robots, such as frequent excellent transactions, calm transactions that are free from emotions, strategy execution, including 24-hour high-frequency trading, etc., these advantages can allow us to face the bear market. Shocking market conditions bring more opportunities.
However, there are advantages and disadvantages. The challenges that trading robots need to face are also considerable. Whether it is batch or individual trading robots, strategy is a core issue. After all, strategy is dead, while market trends are alive. If you set up a strategy of sideways shocks and fluctuations, then faced with the emotional stimulation of the market, prices will rise and fall sharply. Under unilateral market conditions, this sideways strategy may cause continuous losses. If you set a unilateral trend strategy such as buying at a low level or shorting at a high level, you may not be able to make a good profit in a range-bound market.
Therefore, the quality of the strategy determines the basis for profitability, which may be better for retail investors. Binance's grid trading has many strategies set by excellent traders, which will be more in line with the current market trends. This is not very friendly to people who want to batch.
And in the face of market emergencies, like the recent ETF hot spots, everyone is hyping up market sentiment. We are bullish. However, if there is bad news such as all ETFs being rejected, we can react to stop losses and cancel orders. , but for robots, it may be more about poor adaptability.
This year is a blowout year for AI technology. In fact, I am looking forward to the combination of trading robots and artificial intelligence, using the powerful logic and computing power of artificial intelligence to trade more efficiently, quickly and flexibly.
The above is my sharing about trading robots. Although I don’t have much experience in trading robots, I can only share it with you through fans’ sharing. Maybe my understanding and knowledge are not comprehensive enough, so I hope you can bear with me. If you have a deeper understanding, you may wish to share it in the comment area and discuss it together.
Finally, thank you all for your support and love for Uncle Cat,