Modern retail traders have access to a rich arsenal of analytical and automation tools to produce some of the most efficient bots out there. The current level of technology allows everyone to build sophisticated autonomous trading systems regardless of available hardware, technical expertise, and even trading experience.
Often, the outcome of experiments with automation depends on the quality of services on the platform chosen by a retail trader. Any sufficiently capable trading bot will work fine within the confinements of the system it is built upon. However, creating such systems and making sure that they perform without any issues can be challenging if you fail to pick a good automation platform.
How to automate crypto trading strategies
Automated trading systems come in all shapes and colors. However, the complexity of their algorithms and the scale at which they operate do not change the core design of a typical automated trading system that usually consists of three main components:
- A signal generator. Bots must be triggered into action by an input. It can be a manual command or an alert sent from a signal provider. The latter is usually a specialized web app or a strategy deployed on the TradingView platform. All signals must be vetted and confirmed before being redirected to bots.
- An algorithm executed on a specialized automation platform such as WunderTrading or locally with bot software. The WunderTrading crypto trading platform offers a wide range of efficient bot setups that can be launched in just a couple of minutes if you have a reliable supplier of trading signals.
- A trading platform in the form of a centralized exchange or a brokerage service. Bots send commands to these platforms via API bypassing the user interface which can be quite slow compared to direct app-to-app communication.
Retail traders who have some experience in trading and investing usually have a good grasp on which strategies to use and whose financial advice to follow. They also have several CEX platforms or brokers they trust. It means that the only important component they need is an automation platform that offers flexible instruments, affordable pricing, and unique products.
WunderTrading features and benefits
Building an excellent automated trading system is something that can be rewarding and fun if you have the right toolset for the job and do not encounter any significant difficulties while creating bots for smarter crypto trading. WunderTrading is a great destination for retail investors interested in increasing profitability, avoiding risks, and building sophisticated systems.
Which products and features should you check out when trying to find the right instrument that suits your preference and risk style?
Key features and products
While browsing through the catalog of automated trading systems available at WunderTrading you will find a rich selection of exciting bot setups. Here are some interesting features of the automation platform:
- DCA and GRID bots. Distributed cost average is a method of reducing the cost of asset acquisition by splitting large purchases into a series of smaller purchases made during a descending trend. It is an excellent approach if you want to expand your portfolio or trade safely. GRID bots use the same method of opening market positions but place a separate exit order for each. These bots have established themselves as consistent money-makers.
- Signal bots can be triggered by alerts from a variety of sources including highly specialized suppliers, trading signal platforms, and technical analysis strategies deployed on TradingView. You can customize them however you like to create a system that corresponds with your investment preferences, risk management style, and performance requirements. Make sure to vet reliable trading signals suppliers.
- A portfolio tracker is a very useful instrument providing essential information about the performances of automated trading systems, available assets, and important metrics to evaluate potential profitability, losses, and efficiency of investments in general. The WunderTrading’s tracker is a neatly organized assortment of data points that give you the necessary insights to make better financial decisions.
- The copy-trading marketplace is another important feature. The platform allows its users to find good retail traders showing impressive results and follow them for a small fee. Some even offer their services for free. The marketplace allows investors to filter copied traders by exchange they work on, profitability, and other metrics.
WunderTrading’s advantages
Investors seeking the best ways to automate crypto trading strategies enjoy a wide range of benefits when engaging with products from WunderTrading. Here are some advantages you should expect:
- Speed and Efficiency. WunderTrading’s bots place orders as fast as possible, reducing the time from the signal to market execution to ensure that you don’t miss out on profits. The infrastructure is solid so you won’t experience any downtime either.
- Backtesting and Optimization. You should never launch bots without testing them. The WunderTrading platform has the backtesting functionality which is used to test your bot settings against the market history and make adjustments before launching!
- 24/7 Trading. The crypto market never sleeps or rests. It is a highly competitive environment where idle systems have no chance of survival. If you want to make something that will produce profits around the clock, use the toolkit available at WunderTrading!
- Risk Management. Users of the platform can adjust various advanced settings of bots to choose appropriate values for delayed orders and set optimal position sizing rules. It is important to test different combinations of settings to achieve good results.
- Flexible pricing. Paying for effective crypto trading tools can be cheap if you choose the right subscription plan that covers your needs and preferences. The WunderTrading platform has multiple plans to pick from allowing retail traders to find the right selection of products they want to pay for.
Examples of advanced technologies
It is incredibly important for smart investors to work with companies that do not lag behind the competition and invest in research & development. Using the latest and most potent technical analysis tools, partnering with exchanges using cutting-edge technologies, and paying for products designed by development teams that continuously search for new ideas and tech.
Here are two exciting features on the WunderTrading platform that you can check out now or expect in the near future:
- AI-assisted statistical arbitrage. Expert AI statistical arbitrage systems use sophisticated quantitative models to identify price gaps or other deviations from the norm in the crypto market. Thanks to WunderTrading, all individual investors can use these incredibly complex systems to their advantage. The product is available on the platform right now.
- AI systems for GRID bots. The methodology behind GRID bots is solid on its own, but it can be further improved with AI adjusting exit points and searching for better entries while managing risks in real-time. Artificial intelligence in fintech is a crucial area of interest for all companies providing automation products. The WunderTrading crypto trading platform is developing a variety of new AI-powered instruments and improved GRID systems are just one of the upcoming products.
Smarter crypto trading techniques
When using advanced automation instruments to build autonomous systems you should be aware of several key strategies and considerations to maximize their effectiveness and mitigate risks. Here’s a guide for smarter crypto trading with bots:
- Define clear objectives. Before deploying a trading bot, define clear objectives and goals for your trading strategy. Determine your risk tolerance, desired return targets, and time horizon for investment.
- Select the right bot. Aligning your bots with preselected trading styles, preferences, and objectives is vital. For example, pick DCA to slowly acquire assets for long-term holding or choose market-making bots for passive income. For those seeking to improve trade execution efficiency, integrating a signal bot into their automated strategy can be highly beneficial. These bots allow traders to act on high-quality signals instantly, reducing the risk of missing profitable opportunities. By leveraging a signal bot, users can ensure precise trade entries and exits, enhancing the overall performance of their automated trading systems.
- Backtest your strategy. Before deploying your bot in live trading, thoroughly backtest your trading strategy using historical market data. Use backtesting results from WunderTrading to refine and optimize your strategy parameters and improve its effectiveness.
- Use advanced risk management techniques. Incorporate robust risk management measures into your trading strategy. Set predefined stop-loss levels, profit targets, position sizing rules, and risk-reward ratios in the settings. Diversify your portfolio across different assets and strategies to reduce concentration risk.
- Monitor performance. Use the Portfolio Tracker from WunderTrading to continuously monitor the performance of your trading bots in live trading to ensure they meet your expectations and objectives. Regularly review key performance metrics, such as profitability, win rate, Sharpe ratio, and maximum drawdown.
- Adjust settings accordingly to the market circumstances. Remain adaptive and flexible in response to changing market conditions. Regularly update and optimize your trading strategy and bot parameters based on new market insights, feedback from performance monitoring, and lessons learned from past trading experiences.
The WunderTrading crypto trading platform allows retail investors to create flexible strategies and utilize the full spectrum of readily available algorithmic trading features to their advantage. It is possible to build unique systems or lay back while preset bots do their job while you focus on things that matter to you the most!