Manual Trading vs Automated Trading
Automated trading has become popular in the recent years due to the advantages it provides. Key benefits include fast trade execution and the ability to trade at high frequency which many traders find advantageous. Automated trading systems or trading bots utilize built-in strategy and execute trades automatically based on predefined parameters. This allows fast and efficient trade execution often in milliseconds.
In contrast, manual trading requires you to manually place orders. The trade execution speed can be slower in this case. Automated trading also comes with its own risks. In volatile and declining markets, a bot may continue executing trades based on predefined rules which can lead to losses if market moves unfavourably. Automated trading is considered as rule-based trading because it involves specific strategy. This also eliminates human errors, or any decisions based on emotion.
Top 4 Trading Bots
Trading bots utilize real-time data provided by APIs and data feeds to make trading decisions. Different platforms offer varying degree of customization for the bots. Some platforms allow you to set specific technical indicators for your trade strategy while other platforms require minimal configuration for the bots. When choosing a trading bot platform consider factors like security, ease of use, customization and flexibility, costs and performance, and reputation. In this article, we review different trading bot platforms.
- Coinrule
It is an automated trading platform that allows investors to create and deploy trading bots without coding knowledge. The user-friendly interface allows beginners to easily navigate the platform. Free plan is also available for those who are just getting started with automated trading.
Coinrule currently offers 250+ trading strategies. Users also have the option to create their own strategy. Apart from free plan, there are three other plans with advanced features. The Hobbyist plan and Trader plan are priced at $29.99 and $59.99 respectively and provide advanced features such as multiple connected exchanges, advanced indicators, copy trading and more. While the Pro plan costs $449.99 with better features. Additionally, Coinrule also allows backtesting of strategies.
- 3Commas
It is a popular platform used for automated trading. 3Commas provide comprehensive set of trading tools including trade bots, portfolio tracking tool, and others. This platform is suitable for experienced traders who have sound knowledge of various trading strategies. Through 3Commas, users can also access trading signal marketplace and use specific signal for their bot.
3Commas provide DCA, grid and signals bots for specific trade strategies. You can also monitor the performance of trades executed by bots through the dashboard. 3Commas support popular crypto exchanges like Binance, OKX, Bitfinex, Bybit and others. Free plan is also available with limited features. All paid plans are affordable and give access to multiple bots.
- Shrimpy
Shrimpy is one of the best platforms for automated portfolio management. You can run automated trades and also test different trade strategies. The platform is easy to use and gives a comprehensive dashboard. This platform empowers traders by enabling them to manage multiple virtual portfolios. Smart rebalancing feature and DCA strategies are also available. One thing that sets Shrimpy apart from other platforms is the smart order routing which provides the best rates for traders. Free plan is also available along with paid plans. For automated trading especially automated DCA strategy, Shrimpy is a good option.
- Cryptohopper
It is trading bot platform suitable for both beginners and experienced traders. It can be used for automated trading and portfolio management. Social trading option is also available for those who want to copy other professional traders. Users can set specific trade bots with predefined parameters. Moreover, you can connect to multiple exchanges and easily manage your portfolio. Cryptohopper also supports trailing orders specifically designed to lock on profits or reduce losses.
If you are unaware of how strategies work, you can utilize the paper trading feature to simulate trades to gain experience. You can also backtest strategies. And lastly, Cryptohopper’s strategy designer can be useful for creating your own custom strategy using a combination of technical indicators without coding.