What is a trading robot and how does it make trading easier?
This is a program for automating transactions on the stock exchange. Roughly speaking, a trading robot contains a set of rules: when to buy, when to sell, what factors should be taken into account when making transactions in the first place, and what should not be paid attention to. It looks like the work of a professional trader, only everything works automatically.

To understand how a robot makes trading easier, imagine the following. For profitable trading, a trader during the day needs to simultaneously keep in mind the statistics and news background on the exchanges of other regions, corporate reporting of companies on shares. And also analyze charts and take into account changes in the value of securities in the past, monitor macroeconomic reports, and so on.

This is the main principle of the trading robot. It simultaneously analyzes charts, news, company reports and other priority information. Then the robot either trades itself, or the trader does it. At this point, exchange robots are divided into two more types. Also learn more about bittrex trading bot. 

What types of exchange robots exist?
There are two main types of exchange robots: automatic and semi-automatic. For the first, the whole process is automatic. The robot connects to the trading account and makes transactions on its own. Such robots are able to calculate the conditions for buying, selling, the level of risk and behavior in case of force majeure situations on the market.

Semi-automatic trading robots are also called advisors. They analyze charts, company reports, news background. And they give you a recommendation: buy, sell or hold.

How popular and safe are trading robots?
Robotic trading is popular. According to the Central Bank of Russia, by April 2018, up to half of all transactions on the Moscow Exchange were made using computer aglorhythms. Abroad, their number reaches 80%. And by 2025, more than $16 trillion in assets will be managed by robots, according to Deloitte analytics.

Such volumes of transactions are made by professional robots. They are created by a team of programmers and mathematicians. Free robots that are available on the Internet are most often unsafe: these are primary developments, raw demo versions. In private developments, increased attention is paid to the fault tolerance of the program and work in conditions of sharp and sudden price jumps.

When can a trading robot be useful?
If you decide to buy securities yourself and form a portfolio, a well-tuned exchange robot will help simplify the process. The amount is also important here: it makes sense to trade using the algorithm if investments start from a million rubles. This is due to the fact that the exchange robot needs “space” for a reversal. It is difficult to manage the risks of a portfolio that is made up of a couple of securities for a small amount.

What are the criteria for choosing a robot?
Everything is simple here. Look at the profitability of the robot in the past, the level of risk and, in principle, the openness of the system. Do not agree if you are forced to buy a black box with incomprehensible conditions. Disagree if you are told only about profitability and are silent about risk, that is, the allowable percentage of money lost.

When choosing a trading robot, remember the importance of minimizing risks. Ideally, if several robots with different trading strategies are connected to the account. This way you will not depend on one system and will be less likely to encounter force majeure events.