Robot trading: The best trading bots (2024)

The robots conquering trading – Algorithmic trading, also known as automated trading, represents a revolution in the way transactions are executed. At the crossroads of computer science and finance, it involves the use of sophisticated algorithms to automate buying and selling decisions in the markets. This approach allows for fast order execution, dynamic portfolio management, and real-time adaptation to market conditions.

Unlike traditional markets with opening and closing hours, cryptocurrency trading can be continuous. Algorithms can thus exploit opportunities at any time, offering unparalleled flexibility. Also, cryptocurrencies are known to be relatively volatile. Due to their nature, trading algorithms can react in real time to these violent movements, executing transactions at a speed unattainable for human operators. Let’s explore trading robots!

## The best CRYPTO trading bots

### Kryll.io: Create trading bots in a simplified way

With the Kryll.io platform, it is possible to create trading bots, even if you do not know how to code! Indeed, the platform allows the implementation of trading strategies without the need for programming knowledge. With Kryll.io’s no-code system, traders can design algorithms by visually assembling pre-programmed logic blocks to create trading rules and conditions. A simple and effective solution for all traders. In parallel, it is also possible to share strategies with the community through the “Kryll marketplace” feature, where successful strategies can be bought or sold. It is interesting to note that more than 87% of the strategies launched by Kryll.io users were in positive territory as of January 2024.

Also, in 2023, the platform decided to reduce the minimum amount to launch a strategy. It is now possible to start with $100. 2024 is filled with new features, and the roadmap is already available. Among the objectives displayed by Kryll.io:

– Opening its services to the traditional market (stocks, bonds, currencies…)
– The arrival of KryllGPT, a tool based on artificial intelligence (AI). Traders will be able to benefit from the contribution of AI in building a trading bot.

The platform specialized in cryptocurrency trading bots has weathered two bear markets. This demonstrates the seriousness and resilience of the company, which is experiencing growing success.

### 3commas: The specialist in trading signals

On the 3commas website, it is also possible to copy trading strategies. The user has the choice between:

– Dollar Cost Averaging (DCA) strategies.
– Grid trading strategies (buy and sell position grids at predefined intervals to take advantage of market fluctuations).

Also, the trader has the possibility to create his trading bot via the Tradingview platform (using the pinescript language). The 3commas platform allows the connection of Tradingview to exchanges through a trading signals system (called webhook). A simple and effective solution for trading bot creators.

### Cryptotrader: A strategy that combines risk management and profitability

This tool is significantly different from the others presented above. Indeed, the CryptoTrader application allows clients to follow strategies built by professionals. The portfolio will be fully exposed during bullish trends (with a majority of Bitcoin and Ethereum). In neutral trends, the portfolio will be less exposed to better manage risk. Finally, in bearish trends, the portfolio will be fully in stablecoin. The strategy is automated, but humans take over during periods characterized by high volatility.

Since 2018, the strategy has been significantly more profitable than the performance of Bitcoin:

– CryptoTrader has a monthly performance of 6.6% and an annual performance of over 100%. Past performance is not indicative of future performance, but the strategy is robust, and it has already withstood two bear markets. The application supports four exchanges: Kraken, Bybit, Binance, and Coinbase.

## The criteria for choosing trading bots

It is important to understand that nothing is ever certain in the cryptocurrency market, and in financial markets in general. Therefore, it is absolutely necessary to avoid trading bots that promise performance every month or any other promise of gains. Before taking action, it is important to verify that the team is reliable and responsive.

Once this first selection is done, it is interesting to look at the bot’s history. It is better to bet on a bot with an interesting backtest (interesting performance), but it must also work in real conditions. Sometimes, transaction fees and slippage phenomena are underestimated by trading bot creators. It is also necessary to know if the trading bot uses strict risk management. Indeed, it is necessary to avoid bots that use too much leverage. The robot should not be able to risk its entire portfolio on a trade. Of course, it is absolutely essential to have quick access to funds.

## Understanding cryptocurrency trading and automation

The cryptocurrency sector is still in its early stages, and volatility is still very high. If this volatility can allow for significant gains, trading bots must be adapted to this characteristic. It is also important to consider that Bitcoin dictates its law on the cryptocurrency market, and that only a few altcoins manage to perform independently of BTC. The cryptocurrency market is particularly interesting for trading bots. The market being open every day and at any time, automated systems are extremely interesting in this sector. Indeed, the trading bot can execute positions while we sleep!

The emergence of trading robots predates the arrival of cryptocurrencies. In fact, advertisements began to arrive at the end of the 1990s, highlighting the advantages of trading bots. Trading through bots has become a norm, as they allow for the analysis of a lot of data in a very short time. It is estimated that 60% of transactions on the market come from automated strategies. The simplification of trading bots through solutions like Kryll.io could lead to an acceleration of the democratization of trading bots.

## Introduction to trading robots

### Trading robots in a few words

Trading robots are nothing more than the computerized translation of a manual trading strategy. These lines of code can be more or less complex depending on the strategy. In any case, this automation allows for the execution of buying and selling operations without human intervention. Often, this requires thorough programming knowledge, but there are no-code solutions as we have seen with the Kryll.io platform.

### Construction and operation of trading robots

Trading robots can be built from different indicators such as moving averages, momentum indicators (MACD, RSI, stochastic, etc.), or volumes. Some trading robots even use artificial intelligence to compile data and identify strategies. With the emergence of social networks, it is now possible to add market sentiment data. Indeed, even though there are more and more trading robots on financial markets, the sentiment of operators (euphoria/fear) is still very present.

## Advantages and disadvantages of using bots in trading

### Automated trading has advantages…

By their nature, trading robots are capable of trading at any time, without having emotions when making decisions, and without experiencing fatigue. Automation makes it possible to implement a strategy and stick to it. When an operator loses a trade in a manual method, it is sometimes very difficult to maintain the same convictions for the next position. Also, the trader may be influenced by social networks, economic announcements, etc. When a trader makes a series of winning positions, he may become overconfident and increase the risk (and vice versa). These flaws are completely eliminated with trading bots.

The robot is capable of compiling a lot of information in a very short time. It can also execute trades much faster than humans (take profit/stop-loss). Also, the algorithms make it possible to perform backtesting in minutes. While backtesting can sometimes be misleading, it still allows to increase the odds of knowing if a strategy is interesting.

### … And disadvantages

There is no perfect solution in trading, and like humans, trading robots have disadvantages. While respecting a strategy can be an advantage, it must be understood that the robot will not be able to adapt in the event of significant market changes (crashes). It is also possible that the bot will perform better in certain conditions. Therefore, recurring modifications will be necessary to try to maintain or improve its performance.

If it is possible to remove emotions when making decisions (entries/exits), the bot designer or user will have to face the performance of the automated system. For example, if the robot incurs losses for several days or weeks, the emotional factor comes back. Should settings be changed? Should the robot be paused in these conditions? Should the robot filter more positions? These are the questions that will continue to be asked. Technical issues should not be overlooked either. While the developer should make sure to code a bot well, nothing is ever certain.

## Tips and practical advice for using trading bots

As a bot creator, to maximize profits, it is necessary to devote time to trying to improve strategies. A strategy may be optimal for several weeks, then market conditions may cause the bot to become less profitable. While it is interesting to seek to improve a strategy, it is also important to take a step back when taking positions.

It is sometimes tempting to cut a trade or enter positions earlier than planned, but this is often a bad way to operate. It is also important to have some confidence in the adopted strategy! Whether one is a bot creator or only a user, it is interesting to know the market conditions under which the bot works best. For example, if an automation has been made for bullish markets, it is interesting to turn it off in neutral and bearish markets.

As a user, it is important to pay attention to the costs of accessing the bot. Indeed, the performance of a strategy can be diluted in the event of excessive costs. It is also advisable to start with a demo account. Indeed, this allows to realize the reality of automated trading without committing money. Then, one can continue by betting a very small part of their capital. While cryptocurrency trading is risky, trading bots are also very risky.

## Trading robots: a good diversification solution

Currently, there is a multitude of trading bots available, but it is necessary to sort through them to retain only the most accessible and most performant ones. Sites like Kryll.io, 3commas, or Cryptotrader provide interesting automated strategies that have proven their robustness over time. Trading bots are interesting because, by their nature, they can function all the time. They have no emotions, are not affected by fatigue, and are not affected by a series of losing trades. Despite everything, it should be kept in mind that very few robots manage to perform sustainably over time. Some display interesting performances, particularly in bullish markets. Thus, they represent a good solution for diversifying one’s portfolio.

For several years, trading robots have been omnipresent in financial markets, and this trend is expected to continue. In the future, robots should continue to improve, particularly through the use of artificial intelligence. Also, the most performing robots will be able to compile more and more information. Despite the growing presence of bots, there are still many human traders. Therefore, the improvement of bots could also involve a better understanding of the behavior of human operators.

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