Three effective ways for earning on a cryptocurrency with the help of robots without risks.
Investors are always looking for the safest and the most efficient ways for earning money. It is not so easy in financial markets. During the past 10 years, the share of transactions, which made by algorithmic strategies or robots, accounted for more than 70% of the total number of transactions. What is the algotrading? This style of trading, where a certain trading algorithm includes rules for opening a position (trading signal), managing a position, closing a position, risk management and etc., is implemented programmatically in financial markets, connect to a trading platform or directly to the exchange , is activated and strictly fulfilled the rules, which prescribed to him. A crypto market is an unpredictable flow of information and quotations, but one period of a random process will never look like another period of random wandering. Is it possible to receive a stable income in chaos? YES! If you have profitable algorithms and direct connection to exchanges (so you do not lose precious seconds or pay extra intermediary commission), so you can always earn tens «%» per annum. The most effective (we understand efficiency as the income that is higher than the bank deposit and the risk that can be set, for example: not to lose more than 5% of the account) directions in algorithmic trading are:
• Market-making strategies — in the world practice official market-makers are called professional market participants who provide instant liquidity in the assets assigned to them, which allows other participants to freely buy or sell these instruments at any time. The market maker simultaneously supports quotations of some volume for buying and selling at a certain distance from each other specifically for this. Its profit is formed due to the periodic execution of these applications, and the income will be equal to the difference between the purchases and selling price (spread) from each open, then closed position, if we assume that the market situation remains unchanged. Also, the exchanges return commission to market-makers, which is also an essential income for them. Today it is not necessary to have a license to become a market maker, it is enough to connect and run the algorithm on the required instrument.
• Volatility trading strategies — volatility — is a statistical financial indicator, which characterizes the variability of prices. It is an important financial indicator and concept in the management of financial risks, where it represents a measure of the risk of using a financial instrument for the given period. Volatility trading allows you to earn money regardless of the direction of the trend. With the help of certain option strategies developed by Hedge.pro, you can make a profit, both from growth and falling price of almost any asset, and get unlimited income at a limited risk.
• Arbitrage strategies. There are many directions of arbitrage algorithms. We will talk about the simplest and most primitive: it`s a spatial arbitrage. It is a spatial because we are essentially trading one product in different places, for example, Bitcoin on the US stock exchange and Bitcoin on the stock exchange in Japan. The share of algorithms is not great in the crypto-market, so you can profit without risk. You need connecting with exchanges for doing it, where bitcoin is traded and you need to run the algorithm
What do you need to do before starting the algorithmic strategy? You should develop the algorithm, test the algorithm on history, connect directly to exchanges, rent a server and set up risk management. For example this is our market-making strategy on Brent are available for our clients and of course future Hedge.pro clients:
All this will be available on the Hedge.pro platform next year, investors will be able to rent and launch ready algorithms with a transparent history from their accounts in any markets — from crypto-currencies to stocks and bonds.
