bot_trading

Hello everyone! Today, I decided to write my first article dedicated to studying the profitability of #bot_trading s. I had a question: how does the income from trading with a grid bot relate to a simple long position? What is a grid bot: the capital is automatically divided by the number of grids, and upon reaching the appropriate price, the BOT order is triggered, both short and long. What is a long order: as we know, it has been growing all the time, almost since its inception, although there have been temporary failures quite often in its history of price $BTC , but in general, a person who would have invested a minimal amount 2-3 years ago could have gotten rich. Therefore, I decided to check what is more profitable: a grid bot, or buying an asset, in this case, $BTC , at a certain time and selling it after some time. For analysis, I took the bullish trend from April 21, 2025, to April 26, 2025. I used the TradingView program, created an approximate strategy for the bot, through the Pin script with the help of AI, and got the result, of course, not the first time. But let's look at these results: The first picture is a graph of the price behavior of $BTC /$FDUSD $FDUSD- stablecoins on the Binance exchange. We see a bullish trend with a small price correction. The next picture is the Strategy Analysis tab - a tool built into TradingView. We see a net profit of +0.56 percent for the period. This means that our #bitcoin ot earned about half a percent of the invested funds in these 5 days. Not bad, but let's look at the buy&hold return period, where we will see how much we can earn if we buy bts from the beginning of the period and sell it at the end! Almost 9 percent!!! The difference is huge, and immediately there is doubt in the results, and indeed, we can see in Figure 3 that my generated strategy does not fully copy the grid bot from Binance - for example, we see only long positions and do not see shorts. I still don't know why it doesn't work... Second, of course, the $BTC price chart has not only bullish trends, but this will also affect the result of this competition. Third, the specific parameters of the bot also affect. But logic also suggests - it is better to buy cheap once and then sell expensive price! The only question is when????

You can use an automated trading bot on Binance to trade for you while you sleep or are away from your mobile. However, while trading bots offer convenience and potential profits, they also come with risks that you should consider before relying on them.

Potential Benefits of a Binance Trading Bot

✅ 24/7 Trading – The bot can trade non-stop, even when you're offline.

✅ Emotion-Free Trading – Eliminates human emotions like fear and greed.

✅ Speed & Efficiency – Executes trades instantly based on preset strategies.

✅ Backtesting & Automation – Allows strategy testing before real trading.

Risks of Using a Binance Trading Bot

1️⃣ Market Risks
Crypto prices are volatile; bots can suffer losses in unpredictable market conditions.If the market crashes suddenly, the bot might not react fast enough

2️⃣ Wrong Strategy Risks
A poorly configured bot can keep buying at high prices and selling at low prices, leading to losses.Bots follow preset rules; if the strategy is bad, the bot will keep making bad trades.

3️⃣ API & Security Risks
Bots use API keys to access your Binance account. If the API key is hacked, your funds could be at risk.Avoid giving withdrawal permissions to the bot to prevent potential losses from hacking.

4️⃣ Exchange Risks
Binance or any exchange could experience downtime, preventing the bot from executing trades.Sudden changes in Binance policies could impact bot functionality.

5️⃣ Leverage & Liquidation Risks (For Futures Trading Bots)
Using leverage increases potential profits but also increases risk.If the bot uses high leverage, your account can be liquidated (losing all funds in a trade).

6️⃣ Scams & Fake Bots
Many fake bot services promise guaranteed profits but are scams.Always use reputable bots like Binance’s built-in bots, 3Commas, Pionex, or CryptoHopper.

How to Reduce Risks When Using a Trading Bot

✔ Start with a demo account or small investment – Don’t risk large amounts immediately.

✔ Use stop-loss settings – This prevents excessive losses.

✔ Monitor bot performance regularly – Don’t leave it completely unattended.

✔ Choose a well-reviewed bot – Avoid scams and use only trusted services.

✔ Don’t use excessive leverage – If using a futures bot, keep leverage low.

Final Verdict: Is Using a Binance Bot Worth It?

A bot can make profits while you sleep, but it’s not a "set and forget" solution. If you use the right strategy, manage risk, and monitor performance, bots can be helpful. However, there is no guarantee of profit, and there’s always a risk of loss, just like manual trading.

Would you like recommendations on specific bots for spot or futures trading?

This isn't Effortless work which we do for you buddy to spread knowledge about Trading
#bot_trading
So must Follow @candlecracker and show support by reposting the post with humble comment. Like if you got it helpfull.
$BTC
_________________________________
👈¯\_(ツ)_/¯
🅣 🅘 🅟 𝙤𝙪𝙧 𝙥𝙤𝙨𝙩𝙨
꒐ꊰ 𝙮𝙤𝙪 𝙛𝙞𝙣𝙙 𝙩𝙝𝙚𝙨𝙚 𝙝𝙚𝙡𝙥𝙛𝙪𝙡
¯\_(ツ)_/¯👍
__________________________________