Get Rich With Trading Bots (2024)

To answer this question I’ve spent a lot of time thinking and investigating neural science, algorithmic trading, crypto trading and found something really interesting.

Disclaimer: if you are reading this article, I assume that you’re acknowledged about stock/crypto markets and have basic understanding why you need a bot or you’re just interested in their theory. This article won’t contain any code parts and it’s for educational purposes.

Let’s start with facts. Trading bots are not new and there are plenty of publications about it, they are used by financial structures, but are they really helpful? I think so, but if you are a programmer or you acknowledged basic concepts of scripting, you are able to write your own bot in few hours. But will it earn enough money for you? Will it have stable earnings? Will it ever hit 100,000$ annual return? I’m going to answer these questions in this post and give you some shots to move forward.

1.What is a trading bot?
A trading bot is an algorithm that turns specific market conditions into order decisions (usually buy, sell or hold). That’s it, nothing special.

2. What types of trading bots exist?
All types that any trader could take, as the bot is an algorithm written by programmers, they could put any logic in it.
In general, we have different types of traders:
• Long-term traders — investors;
• Swing traders — those who place orders on a week, month, or year basis;
• Day traders — those who place few orders through the day without moving them overnight;
• Scalping traders — those who place many orders per day, an hour, or even a minute.
All these trader types could be implemented in a bot.

3. Where trading bot could place orders?
Anywhere you want and could get to broker’s API or through reverse engineering. But you may even…