TradeLand | AI Trading Bots That Work

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trading bots types and how to use them

Put simply, trading bots are software programs that can enter and exit trades on your behalf.

They do this fully automatically, after you set certain pre-defined parameters.

Although not recommened, you principally could ‘set it & forget it’, and the bot will putting on trades on your behalf day and night, including the weekend.

 

Types of Trading Bots

 

Arbitrage Bots

Arbitrage bots try to buy asset X on one platform, and sell it on another to make a profit from the price difference.

While arbitrage trades can be profitable, it often requires large sums and numerous trades to see significant gains.

Arbitrage bots are typically only recommended for institutional investors.

 

 

Coin Lending Bots

 

Coin lending bots automate the lending of coins, typically to margin traders, willing to repay the loan with added interest.

Many exchange platforms offer coin lending, but the manual lending of your funds can be time-intensive.

Using a coin lending bot automates the entire process, saving time and uncovering potential opportunities. Lenders view margin loans as a low-risk return on investment since the funds remain on the exchange platform and cannot be transferred elsewhere.

The yield from coin lending are usually in the lower single digits, hence not very popular among retail investors.

 

 

Margin Bots

 

Put simply, with margin bots, you automate the borrowing of funds from an exchange, in order to make trades larger than your account’s equity.

It allows you to leverage other people’s capital for your trades.

You can buy if you expect the price of an asset to rise or sell during a drawdown. Margin bots, also called leverage bots, can utilize these borrowed funds to make trades that exceed your available capital.

It’s important to remember that leverage can result in significant losses (or profits), depending on the accuracy of your predictions, strategic application and the quality of your margin trading bots execution.

 

 

Technical Trading Bots

 

Today, a commonly used bot in the market is the technical trading bot.

These bots utilize pre-defined indicators and signals to predict future price movements of a coin, enabling profitable trades.

These bots also offer signal and social trading features, allowing you to copy trades from successful traders. You can find reliable and trustworthy technical trading bots on the best marketplaces available.

 

 

AI Bots

 

AI bots, in other words, trading bots employing artificial intelligence (AI), are quickly gaining popularity as they develop and execute effective trading strategies.

These AI-powered bots utilize advanced algorithms and machine learning capabilities to analyze large amounts of data and generate certain predictions.

By continuously learning from past market trends and patterns, these bots can identify profitable trading opportunities and execute trades accordingly.

The use of AI in trading bots offers the potential for more accurate and sophisticated strategies, ultimately increasing the chances of achieving profitable outcomes.

Traders can find AI-based trading bots on various platforms, leveraging the power of technology to enhance their trading activities.

 

 

Photo by Muhammad Asyfaul on Unsplash

Asset Classes You Can Trade With Trading Bots

 

  • Cryptocurrencies
  • Stocks & ETFs
  • FX/Currencies
  • Bonds

 

 

 

What Trading Bot Strategy Should You Use?

 

We at TradeLand believe AI trading bots give you the biggest chance for success.

Utilizing AI offers several advantages:

Firstly, AI bots process and analyze vast amounts of data within seconds, enabling them to quickly determine the best possible trades.

Secondly, AI bots operate 24/7, executing trades even when you are not actively monitoring the market.

The above eliminates the need for manual research and analysis, saving traders ample time and effort.

 

 

How To Use AI Trading Bots?

 

To utilize AI trading bots effectively, you first select a reputable AI bot that suits your trading style and preferences.

For example, you can create a (free) account with TradeLand, a platform where you use one AI trading bot for free.

Then connect your TradeLand account with Binance.

Next, you choose good parameters for your bot, such as the trading pair, the key conditions to enter and exit trades, your time horizon, etc.

Once you believe the market will either go sideways or up, you can turn on your AI trading bot and simply observe which trades it is entering and exiting.

 

 

Conclusion

 

We recommend you first only allocate small amounts of funds, get familiar with a trading bot platform you trust and like, and take baby steps first.

Once the bot shows promising results over a period of one month, you can step-by-step allocate more funds.

 

 

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