1. Definition:
A trading bot is an automated software that executes trades on your behalf using pre-set strategies.
2. How It Works:
Connects with exchanges via API.
Follows market signals, technical indicators, and rules you set.
Can buy/sell 24/7 without human intervention.
3. Benefits:
Works round the clock (no sleep).
Removes emotions from trading.
Faster execution compared to manual trading.
4. Risks:
Wrong strategy = huge losses.
Over-reliance without monitoring.
Market volatility can break bot logic.
5. Popular Types of Bots:
Arbitrage Bot
Grid Trading Bot
Market-Making Bot
Trend-Following Bot