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The future of trading is algorithmic: focus on automated cryptocurrency trading

Cryptocurrency trading has undoubtedly brought many innovations to the investment world. Among them, it is impossible not to count automatic trading



#trading is conceptually considered by most people to be an activity on a par with gambling. For those who have been trading, however, especially for the past few years, know full well that there is no characteristic in common with betting. Trading began as an art and developed as a system.


Historical traders to this day trade on the basis of "sentiment": the ability of trading to understand when a stock market environment is being created that can bring profit to one's capital.


Modern traders, on the other hand, are less empathetic to the market and predominantly tend to prefer a systems approach to trading.


When it comes to cryptocurrency trading, no trader even questions it.

Absolutely impossible to trade solely on experience.


Not only are the markets open 24 hours a day making it impossible to define clear "working hours," but moreover, the dynamism with which the dynamics governing price change is disarming.



The importance of trading systems and algorithms in cryprocurrency trading.


To make up for these shortcomings, many traders reason by automation. A liquid, 24-hour market is too tempting not to work with it, however difficult it may be. Trading algorithms and trading systems come into play.


Over the years these systems have become more and more developed giving even retail traders the opportunity to be able to set up their own automated investment algorithms.


The role of the trader thus lies rather in finding sufficiently strong statistical and historical recurrences on which to develop his or her own automated trading system.


Algorithmic trading creates not a few benefits for a trader:

first and foremost an important saving of time.


Working with algorithms does not mean making money without taking time. It means devoting the time we used to spend waiting for an opportunity in front of the chart, to studying the markets to improve one's strategy.


In addition, an algorithm eliminates stress and emotional complications that can be created behind the trader's trade (needless to repeat the importance of emotionality for a trader).


Not to mention that having an algorithmic system also greatly simplifies the tracking of one's trading. Having curated statistical data regarding one's trading greatly simplifies the process of filing the trader's trades.


Finally, needless to say but an algorithmic trader will always be faster than a manual trader. This almost certainly results in better entry prices and thus savings in monetary terms as well.



Programming languages


The most commonly used programming languages are undoubtedly Python and Pinescript (the native language of the TradingView platform). Through these programming lineages and the use of APIs, you will only need to have a server on which to launch the BOT and you are done.


Our team of algo traders and bot developers use Amazon's server (Amazon Web Services) and a long line of Raspberry Pi connected to the wifi network in our operations center.


In summary, it works like this:

Source code requires access to certain APIs to obtain information. Having identified the condition that satisfies our algorithm, a command is sent to the exchange to perform and manage the operation as defined by the source code. To make the BOT work around the clock we run everything on our servers. Our devs manage the operations remotely.

The servers are in Italy while a good portion of our traders are in London.


 

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Do you want to create a trading BOT, an alerting system, or other types of BOT to apply to the world of crypto and NFT markets?


Please feel free to contact us!



 



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