#MerlinTradingCompetition Trading bots are automated computer programs designed to execute buy and sell orders in financial markets, including cryptocurrency and stock markets, based on predefined rules and strategies. These bots aim to help traders take advantage of market movements 24 hours a day, seven days a week, without the need for manual intervention.
How do trading bots work?
Trading bots rely on specific algorithms to analyze market data, identify trading opportunities, and execute trades automatically. Their operation typically includes the following:
Collecting and analyzing data: Bots gather vast amounts of market data, such as prices, trading volume, and technical analysis indicators (like moving averages, Relative Strength Index (RSI), Bollinger Bands), and sometimes even sentiment analysis from news and social media.