The times of manual asset trading are long gone, and the niche is full of algorithms and trading bots that yield millions of dollars to their owners. Thus, whether you’re a retail investor with a bright technical idea or a capital fund wishing to automate your market approach, a trading bot will be of real help.
The market for AI trading bots is growing at a CAGR of 33%+ and is projected to exceed $6.7 billion by 2027 — a promising niche worth investing your time and money into.
Artificial intelligence-powered software is the new word in the world of trading, so you can get multiple benefits from an AI bot at your service:
- Instant completion of deals, much quicker than manual trading.
- Perfect performance based on predetermined logic.
- Freedom from human error and psychological flaws.
- Effective, predictable operation under stable market conditions, reasonable tolerance to uncertainty.
What Is a Trading Bot?
The basis of effective work with algo-trading tools is the understanding of this concept and its functionality. As a rule, your trading bot should be completely customizable, meaning that you can feed your strategy into it and expect perfect compliance:
- Rules for trade entry
- Rules for trade exit
- Adjustable position sizing
To perform these activities, your trading bot should have an advanced algorithmic trading engine, an exchange/broker adapter that links it to your brokerage account via an API, and a market data adapter allowing the bot to adjust to real-time market changes.
Wishing to learn more about trading software and evaluate the pros and cons of buying a pre-made bot versus ordering a custom-made piece of trading software? Read our blog at https://rndpoint.com/blog/trading-bot-business-guide/ to get a complete guide to building and using trading bots with stable profitability.
