Published in

Bots-as-a-utility: The bidding revolution in trading

Understanding the mechanics of trading bots

Making a case for the use of trading bots

  • Easy market entry point for inexperienced traders
  • Maximizing profit potential by having a mechanism that is responsive to market shifts around the clock
  • Bots offer a less emotionally demanding way of trading

Crypto asset management with algorithmic trading

Advantages of Algorithmic Trading

  • Accurate timing of trade order placement;
  • Reliable way of executing trades for the best price;
  • Reduced transaction costs due to limited human resource requirements;
  • Automated checks on various market conditions;
  • Less risk of human error;
  • Real-time data trading;
  • Traders don’t need to keep a watch for live prices and graphs, or put in the orders manually; and
  • The algorithmic trading system automatically executes trades by correctly identifying the trading opportunity.

The developing trends in trading bot technologies

Examples of different types of trading strategies

  • Trend Strategies — these include following trends in moving averages, channel breakouts, price level movements, etc.
  • Mathematical Model Based Strategiesthis allows trading on a combination of options and its underlying securities, where trades are placed to offset positive and negative deltas.
  • Arbitrage Implementing an algorithm to identify price differentials and placing the orders allows efficient profitable opportunities.
  • Index Fund Rebalancing these trades are also initiated via algorithmic trading systems for timely execution and best prices.
  • Mean Reversion this generally involves identifying and defining a price range and implementing algorithms for trades to be placed automatically when price of asset breaks in and out of an established range.

Breaking down How trading bots work

Challenges facing algorithmic trading

  • Getting top programming talent with in-depth expertise in computational trading, such as optimization and machine learning etc;
  • Infrastructure challenges such as backup power and network connectivity;
  • Dependency of durable hardware;
  • A lack of fine-tuned strategies; and
  • Inadequate trading strategy testing.

The 1st crypto asset manager piloting trading bots



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Napoleon Group™

Fully algorithmic, scalable & decentralized crypto asset manager piloting trading bots, founded by former multibillion-dollar managers.