Robot trading, also known as algorithmic trading or automated trading, refers to the use of computer programs or algorithms to execute trades on a financial market. In the context of cryptocurrency trading, robot trading systems can be used to buy and sell cryptocurrencies based on pre-determined rules and conditions. These systems can analyze market data, such as price and volume, and make trades based on that analysis.
Robot trading systems can be programmed with a variety of strategies, such as momentum trading, trend following, and mean reversion. They can also be set up to execute trades based on technical indicators, such as moving averages and relative strength index (RSI).
Robot trading has become increasingly popular in the cryptocurrency market, as it allows traders to take advantage of market opportunities quickly and efficiently. However, it can also be risky as the market is highly volatile and the rules of the robot may not always be able to adapt to the market conditions. It is important to thoroughly test and backtest the robot before using it for live trading.
Additionally, robot trading systems can also be used in combination with human traders for more effective trading, known as “algo-assisted trading”. It can help human trader to make more accurate and efficient decision with the help of the robot.
