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Different bot trading strategies

3 Different bot strategies to help you

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Different bot trading strategies

Crypto trading bots rely on algorithmic trading to run and process complex mathematical formulas and automate and accelerate the trading process.

  • Trend following Strategy

This is the simplest trading strategy in which the bot responds to direct market changes. Trend following does not require complex algorithms that need to factor in such things as predictive analysis etc., and so are quite simple.

  • Arbitrage

The arbitrage model involves cryptocurrency bots exploiting the difference in prices between the numerous cryptocurrency exchanges throughout the world. Since there is no one centralized exchange to determine the price of a cryptocurrency – a role that with fiat money is filled by the central banks – for this reason, prices vary from exchange to exchange.

  • Market Making

The market-making strategy allows traders to buy and sell high volumes of currency and profit from the spread. To be able to trade such volumes, market-making traders rely on trading bots.

Author: Darren Olayan

 

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