The cryptocurrency trading bot technology is still new. With the rapid innovations and advanced technology, you shouldn’t be surprised that the future of CFD trading is bot.

Bot is a colloquial term used to describe another mouthful term, automated algorithmic software. Whichever term you prefer to use, this is a program designed to increase your trading productivity and save you time. The bots are ideal for both professional and new traders. We will find what a CFD trading bot is, why people use them, and how you can choose the best.

What are CFD Trading Bots?

Trading bots and trading execution software work the same. You need to download these apps and connect them to your exchange account through an Application Programming Interface (API).

The difference between bots and trading execution software is that bots automatically execute trades while you have to do it yourself with the latter program. Trading bots are designed differently. Therefore, they execute orders based on how they are programmed.

For example, a trading bot can be based on market sentiment and reading order flow data. Another can be based on traditional technical analysis methods such as Fibonacci retracements, Bollinger bands, and Ichimoku clouds. Each of these will execute orders differently depending on how they are programmed.

Why Should You Use Trading Bots?

Some people prefer to execute trades themselves. They are yet to understand why using trading bots is better, especially if they enjoy CFD trading. While these apps are not perfect, they can be superior. They will be better in a few years as humans continue to perfect them. Nonetheless, using trading bots has several advantages, including;

• Efficient

If you were to perform anywhere close to how bots do, you have to work 24/7 throughout the year. This is humanly impossible. Unfortunately, you can’t absorb existing and new market data. Yet, you have to rely on market data to make profitable trades.

However, algorithmic trading software are designed to absorb all market data across multiple platforms. They catch all entry points, trading setup and everything in between. Having this information make bots more accurate. Therefore, if you trade 24/7 or would like to improve your profits, you must consider using bots to execute your trades more efficiently.

• Saves Time and Energy

One of the top reasons bots are preferred is time efficiency. A trader spends hours analyzing charts, and data, planning, and staring at graphs to execute positions with small timeframes such as 5, 10, or 20 minutes. Imagine doing this every day for a week or year.

While you might enjoy trading, following the same routine is exhaustive. Some quit trading due to these tiresome routines. However, a bot will never complain about getting tired or perform ineffectively because it is exhausted.

You can save time and energy by leaving the bots to execute your trades. The bots can even execute positions on a longer timeframe.

Is the Future of CFD Trading the Bots?

Computer software is faster than humans. They have proven to be more efficient than humans too. Therefore, the future of CFD trading could be bots. 

There is still room to improve the software. While bots might not take over the whole trading execution process, they will play a big part in ensuring successful, profitable trading.

Choosing the Best CFD Trading Bot

Earlier, we mentioned trading bots are different. So, you must choose the right carefully depending on your needs. You need to consider crucial aspects, including trading strategies, position sizes, and risk appetite. Here are some of the things to look for in a CFD trading bot.

• User-friendliness

A trading bot will only be effective if you can use it easily. Otherwise, you won’t need it. Therefore, ensure that a trading bot is user-friendly for your level of expertise. Don’t purchase a bot designed for a professional while you are still a beginner.

• Price

The pricing of trading bots are categorized into two; lifetime and monthly subscription. Lifetime bots belong to you once you purchase them. They are pricier as they may cost from $500 to over $5000. You will have access to new updates, new features, and other perks. 

On the other hand, monthly subscription bots are cheaper and ideal for beginners. You can pay as little as $50. 

• Strategy

A trading bot is a trader. Each trader has his own set of risk and size limits skills and trading strategies. Therefore, when finding a bot, consider its qualities.

Join the rest of the high CFD trading earners by incorporating a bot in your execution. Find the leading trading bots and choose the best based on your needs and your budget.