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There are a lot of factors at play. So before you feed your bot any trading strategy, you have to look at risk management as well. Much as Bitcoin or the market may seem stable right now, nobody knows what can happen in the next 1 month.
You could steadily make your profits over the weeks only for it to get wiped off in one single trade because no risk management strategy was employed.
So about safely or reality, it is not as easy as you think and there is not one strategy that I have seen with a win rate of 100% especially with very small time frames even with the bots. Expect some losing trades even when using the bot.
Secondly, having very frequent trades for those small profits means that a huge chunk of your money will be spent on trading fees. If you want to prove this, run some simulations using this tool - https://www.winrate.io
Maybe you could first run some tests using demo accounts that have fake dollars/crypto for a start, almost all popular trading platforms have a provision for demo accounts.
Trading using bots is very much alive, and I think it will become more and more used as time goes on and as people learn to automate trades.
You could steadily make your profits over the weeks only for it to get wiped off in one single trade because no risk management strategy was employed.
So about safely or reality, it is not as easy as you think and there is not one strategy that I have seen with a win rate of 100% especially with very small time frames even with the bots. Expect some losing trades even when using the bot.
Secondly, having very frequent trades for those small profits means that a huge chunk of your money will be spent on trading fees. If you want to prove this, run some simulations using this tool - https://www.winrate.io
Maybe you could first run some tests using demo accounts that have fake dollars/crypto for a start, almost all popular trading platforms have a provision for demo accounts.
Trading using bots is very much alive, and I think it will become more and more used as time goes on and as people learn to automate trades.
Thanks for the detailed reply — that’s really helpful.
I see your point about risk management. I think that’s one of the areas I need to focus on before even thinking about “profits.” I’ll definitely check out the tool you shared and run some simulations to understand the impact of trading fees and losing trades.
Starting with a demo account sounds like a smart way to learn without risking real money — I hadn’t considered that as my first step, but I think it makes sense.
It’s good to know that bot trading is still alive and likely to grow. I guess the real challenge is finding a balance between a working strategy and proper risk control.
