It is always hard to see when the market is bleeding, and it can easily turn even a wild-eyed optimistic into a hardcore pessimist. However, you do not have to be negative when the market is red, and there are ways to make a profit even in the bearish market. What you need for that is crypto trading bots and our guide that will help you to understand the crucial details about using them. So let’s get started!
The benefits of automated trading
Before we move up to the trick and tips, it is important to highlight the overall benefits of using crypto bots in your trading routine.
First and foremost, trading via crypto bots allows one to approach trading with a clear head. When you see that the chart goes south, you unintentionally become emotional, and there is nothing wrong about it in everyday life. However, when trading emotionally, you always lose, since all your carefully selected strategies and game plans can be thrown out the window, and you start acting impulsively. Crypto bots, on the other hand, do not have emotions and always keep following the algorithm that was embedded earlier into it.
Secondly, it is a matter of time management. It is not always possible to be chained to your laptop or smartphone 24/7, since you have a life to live out there! You might be distracted by something and miss the right moment to buy or sell. Automated crypto trading bots can monitor the market day and night, allowing you to focus on your time with friends and family.
Thirdly, automated crypto bots can make trading easier and lower the entry barrier. Trading in the crypto market that is known for its high volatility can be exhausting and it requires you to do a lot of rigorous research about the latest trends, current market conditions, and upcoming events so that you could gain more and lose less. But even fulfilling all these requirements does not guarantee you imminent success.
Even though using crypto trading bots also cannot provide a 100% chance of success, it surely can lower the barrier for traders with little experience or for those who want to minimize the risks and save the time spent on studying the market.
TradeSanta is an online platform with crypto trading bot and professional tools that can provide all the above-mentioned benefits and make trading more accessible to both beginners and professionals. The platform supports major exchanges such as Huobi, Binance, Binance.US, OKEx, HitBTC, Upbit, and Coinbase Pro. Traders can also manually place orders and test their ideas with demo trading using a comprehensive terminal.
Risk management tools, grid and DCA bots, TradingView signals, and other features already exist in TradeSanta to assist both beginners and pros in their trading routines, and more features to come soon.
How can crypto bots help you in the bearish market?
Those traders who do not have much experience in crypto trading usually see bearish markets as a sign to stay away from crypto until the dust settles. However, it is possible to make potential gains during both bullish and bearish cycles, but you need to know the peculiarities first, such as which strategies you should choose when using crypto trading bots.
Buying when the market is bearish can actually pay you off later when the cycle reverses and charts are colored green again. Certainly, no one knows if that particular dip is the last one or if the price continues to drop further. In that case, you should build positions over time, by continuing to add more new positions as prices fall instead of going all-in just once. When doing that, you can take advantage every time the price hits a new lower level.
Another common strategy that can help you when the bear cycle starts roaring is short selling. This game plan stands for selling cryptocurrencies at a high price and buying them back when the price hits a new low.
So we got the strategies covered, but what about the bots themselves? How can they help you?
TradeSanta bots support a lot of long AND short strategies, the ones that might come in handy when the market bleeds, plus the number of already available tools is quite impressive.
Let’s take a look at those that could help you during the bearish cycle:
- Technical Indicators. Traders can use signals from Bollinger Bands, MACD, or RSI to launch the bot.
- Stop Loss and Trailing Stop Loss. Whether you utilize a short or long strategy, a trailing stop-loss, or trailing-stop, is a sort of trade order that is executed once the price no longer moves in your favor.
- Trading terminal. This tool allows you to trade on multiple exchanges via just one friendly user interface. Highly recommended for traders with multiple exchange accounts and for those who want to apply different strategies on different accounts.
- TradingView and Custom TradingView signals. These signals can be used to enter and stop the deal at the best time possible.
- Demo trading. This tool allows you to test the strategy against the real market conditions without investing real funds
- DCA and grid strategies that can work both with long AND short strategies at the same time.
DCA and grid strategies require a bit of in-depth description.
The bot set up to trade with DCA strategy will place the first buy order first, and more extra (buy) orders in case the price goes contrary to the expected trend. For all the executed orders, the bot places just one Take Profit order for all the sums of the coins purchased by the bot. With each new buy order placed, take profit price and order volume are recalculated to receive the desired profit for all the sum of acquired coins.
The bot set up to trade with grid strategy places the first buy order similar to DCA. It will also place more orders in case the price goes in an unfavorable direction. The main difference is in the way Grid takes the profit. Contrary to DCA bots, a Grid bot will place Sell orders for each buy order separately with the specified take profit.
And yes, both these strategies can be applied in case the price rises (bullish cycle) or falls (bearish cycle).
Trading bots can be extremely helpful in your trading routine. In any case, without knowing the essentials, this tool won’t be much of assistance in your crypto journey.
Crypto trading bot can be an effective tool in terms of saving time and nerves. Allowing the robot to keep an eye on the market can ensure that you don’t miss out on the ideal trade bargain. Besides, let’s be honest, crypto bots can trade hundreds of times faster than any professional trader, providing you the advantage you need to make the most of this market. However, you should always keep in mind that the bot is merely a tool, and you are the one who must make it operate successfully.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the cryptocurrency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal, or accounting advice.