Tips for Algorithmic Trading in the cryptocurrencies markets
1. Make a plan before you start trading The first step to success is to develop a strategy. This will help you determine your risk and ensure that your goals can be met. Developing a strategy also helps prevent situations where you try too hard to optimize short-term performance and lose in the long run. It also helps create an actionable game plan if things go wrong to make it easier to recover from failure.
2. Avoid fear and greed Avoid emotions when trading. Fear (of losing money) and greed (of getting ahead) are the main culprits that cause so many traders to lose money when they should be winning. This is one of the main reasons why it is a good idea to develop a strategy before you start trading.
3. Be realistic about your goals When developing a strategy, think about what you want to achieve with your trading and set a goal based on your objectives.
Algorithmic trading has become very popular although it has its limitations such as having a knowledge not only of the different values and indicators needed to program a strategy but also programming notions to create the code that is then tested in the market to prove the profitability of the strategy when the established parameters are met. As an advantage we can operate the market in a unique way that saves us time and allows us to analyze the strategies in a more robotic way where the operation will be performed when the market meets the data traced.
Thanks For read
References
- Oracle - Daily, FREE Trade Alerts (stockstotrade.com)
- https://www.rsitrader.com/algorithmic-trading-strategies-for-cryptocurrency-markets/
- https://www.coingecko.com/learn/crypto-trading-algorithm
- https://www.coinbureau.com/education/crypto-trading-algorithms/
