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Auto Trading: The Quick Guide You Need

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Abstract generation in progress

Tired of losing money due to emotional decisions? Algorithmic trading (algo trading) is the answer: you let a machine do the dirty work.

What is it exactly?

Basically, you write rules ( buy if BTC drops 5%, sell if it rises 5% ), convert them into code, and the algorithm executes the orders automatically 24/7 without emotion interfering.

The 3 most used strategies:

VWAP: It divides a large order into smaller pieces and executes them over time, following the market volume.

TWAP: Similar to VWAP, but distributes the order evenly over time, not by volume.

POV: Execute trades based on a fixed percentage of the total market volume (for example, 10%).

The good:

  • Orders in milliseconds ( without FOMO, without greed )
  • No emotional errors
  • More consistent profitability

The bad:

  • Requires knowledge of programming (Python, APIs)
  • Risk of bugs and technical failures
  • If something breaks, you lose money quickly

Bottom line: Algo trading is not magic, but it removes the emotionality from the game. If you know how to code and backtest well, it's worth exploring.

BTC-10.55%
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