What exactly are trading bots?

Trading bots are computer programs that automagically buy and sell various assets at the right time with the goal of generating a profit.

That’s literally it.

It’s important to note here that not every bot is profitable, in fact, most aren’t.

It is trivial to make a working bot, less so to have a profitable one. So, ideally the bots actually generate a profit and ideally that profit is greater in risk-adjusted terms than had you have just bought the same coins and held them throughout.

When we say risk-adjusted, what we mean is that your positive gains relative to the negative gains you’ve suffered whilst being invested is better.

To demonstrate this have a think about which would you rather have:

1- Daily returns of 0.5% every single day with zero negative days, with a total return across the year of 180%.

2 – Returns of +10% Monday, -5% Tuesday, +3% Wednesday (and so on) with a total return across the year of 300%.

Hopefully you picked the first one.

See, the first example is consistent. And when something is consistent it becomes a lot less risky.

In fact, you should still prefer the consistent returns of the first example even if the second one ended up at 1000% over the course of the year.

The point here is that given the option of consistent (strong) returns and a rollercoaster ride, you should almost always pick the consistent option even if the rollercoaster ride may land you with higher returns in future.

High returns isn’t enough, you want high risk-adjusted returns.

And this is really what makes trading bots such an interesting proposition. If we can find a way to capture most of the upside of currencies yet without the regular gut-punches, this would make a much more attractive investment proposition than what the holders have to offer.

BrozBot is the first automated crypto and forex trading tool that has been made to automate trading strategies.

The bot’s ability to trade through API keys from exchanges makes BrozBot one of the most reliable platforms because it cannot access or withdraw your money. Our bots can work at very high-speed with the ability to place up to 100 times more orders as compared with manual traders. It is active 24/7 and eliminates the emotional quotient from trading.

The cost is also very low. Anyone can get started with a Basic Plan of $19 per month. Try it now at brozbot.com.