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Auto Trading: The Quick Guide You Need
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:
The bad:
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.