Emotions and calculation are two contrasting forces that can dramatically impact trading performance, whether in sports trading, futures trading, or copy trading.
Even when precise calculations and analysis are done, emotions like greed can often take over, leading traders to make suboptimal decisions.
Common emotional pitfalls include choosing the wrong entry position, failing to set stop-losses, or not taking profits at predetermined targets.
Succumbing to these emotions significantly increases the risk of losses, potentially even catastrophic losses that can wipe out trading accounts.
In contrast, bot trading operates without emotion, driven purely by technology and algorithms.
While losses can still occur with bot trading, they tend to be much more controlled and calculated. Profits and returns can be impressive, as bots methodically execute trades over extended timeframes lasting days or longer.
Bots capitalize on even the smallest market movements, catching positions at the "tails" of candles in ways that are extremely difficult for part-time retail traders with limited resources.
This ability to stay in trades longer while managing risk gives bot trading a meaningful edge in the volatile and unpredictable crypto markets.
For traders prone to emotional decisions or without the time and capital to trade professionally, bots can be a compelling tool to improve consistency and results.