A Coinbharat Guide: Automated Trading Software8-min read

What Are Trading Bots? An Introduction to Automated Trading Software

For individuals new to cryptocurrency trading, finding the right tools can be daunting. However, automated trading bots can be a valuable asset to help optimise investments and minimise risks. These platforms not only offer trading bots but also provide educational resources that enable individuals to learn about the markets and improve their trading skills. By using automated bots, investors can benefit from increased efficiency and precision in their trading strategies, ultimately leading to potential profits in the evolving world of cryptocurrency.

The crypto market is known for its volatility, but the current bear market may seem particularly severe and uncertain. However, there are ways for investors to secure their assets and protect them during these tumultuous times. By utilising automated trading software, investors can take advantage of tools that can aid in setting up price-targeted trades.

Automated trading systems, commonly referred to as algorithmic trading, mechanical trading, or system trading — enable traders to programme set particular rules for trade entry and exit that, once programmed, are performed automatically by a computer. Indeed, according to several platforms, automatic trading algorithms account for 70% to 80% or more of shares traded on US stock exchanges. One of the most appealing aspects of automation is that it can remove the emotion-related hassles from trading by automatically placing transactions when specific conditions are satisfied.

In this guide, we will discuss some of the best automated trading software specific to the Indian market, discuss their authenticity, and review how they can effectively help you in your trading and investment journey.

Best Automated Trading Software for June 2023

The following automated trading bots have been consistently reviewed by both Indian and foreign users as the most reliable and trustworthy, yielding over $1500 in daily earnings. You can sign up for any of them from anywhere in the world and start seeing profits within a matter of days. Some are specialised in crypto trading, whilst others primarily designed for stock and commodity markets.

Bitcoin Prime

Bitcoin Prime is a quintessential cryptocurrency bot. In brevity, it is an automated trading service that keeps an eye out for profitable trading chances on cryptocurrency exchanges. The site claims a 90% success rate and is entirely free to use – you only pay a modest fee on profitable trades.

Services offered by the website include:
1. Trading facility in 14 different cryptocurrencies
2. Commissions are only charged on profitable trades.
3. Collaborates with third-party brokers to carry out extended CFD trades.
4. Testimonials from existing and past customers
5. Offers a trial account for novice traders.

Immediate Edge

One of the most popular examples of trading software that uses a combination of high-end algorithms, AI, ML, and natural language processing to perform auto-trading is Immediate Edge. The software’s user-friendly design makes it appropriate for experts and approachable for novices. It has a simple signup process, a $250 minimum deposit requirement, and enables newbies to get started trading right away. We also noticed through our own experience using the Immediate Edge app that following every live trade, the reward is deposited to the trader’s Immediate Edge account. After then, it is up to the user to decide whether to withdraw their money or carry on with more live trading.

Best features:
1. Lowest required deposit.
2. Fast deposits and withdrawals.
3. Professional traders can use manual trading.
4. Over 90% success rate.
7. Good security protocols in place.
8. Constant 24/7 customer support.

Bitcoin Profit

With around an 85% success rate (under normal market conditions) our next AI-enabled automated trading bot is Bitcoin Profit. The platform trades more than a dozen different cryptocurrencies around the clock. Notably, no account opening fees or trading charges are charged by this platform. With a minimum deposit requirement of $250, the platform features ultra-fast trading, day-end withdrawal, and demo account creating options for newbie traders. The only disadvantage is that they do not offer a mobile app, therefore if you want to trade, you’ll have to use their website.

Bitcoin Code

Claimed by many as one of the most user-friendly bitcoin trading platforms, Bitcoin Code is another popular automated trading software that analyses market trends in real-time to search for good openings and conducts trade on behalf of the user. The platform also features a low deposit limit of $250, performs transactions 0.1 seconds faster than the market, and claims a 99.4% success rate (one of the highest among all automated trading platforms). What’s more, with all the features of the previously mentioned software/sites, they also have their own mobile app.

TeslaCoin

TeslaCoin is a cryptocurrency exchange that performs trades on behalf of its users and provides suggestions for day trading. Users may trade four popular cryptocurrencies on the website: Ethereum, Bitcoin, Cardano, and Ripple. Using an AI-based system, the trading platform discovers potential transactions in Ethereum, Bitcoin, Ripple, and Cardano. The software looks for previous pricing trends that led to marketable price changes. When a trend of this type is spotted, the bot may initiate a new stake in a trader’s account using TeslaCoin. The software then keeps a real-time eye on the activity. When a breakpoint or profit target is reached, the platform stops the transaction and credits all funds, including any gains, to the users’ TeslaCoin accounts. Users can then collect their funds or invest them in more crypto trading on the service, maximising their profit.

Other notable platforms are Bitcoin Era, Bitcoin Revolution, Algo Signals, Quantum AI, and Bitcoin Trader.
All of these trading platforms have been vetted by our experts in terms of their features, performance, and authenticity. Moreover, almost all of them roll out regular updates and bug fixes to facilitate users with the best possible service.

Be warned that there are many fake websites impersonating legitimate automated bots. It is important to access these websites through the official links above. These links will send you to a portal which uses the brands’ official API but employs several levels of security for sign-up and payment processing so as to keep all sensitive data safe from any phishing attempts. This why in some instances, your antivirus software might be triggered when accessing some of these brands directly. By merely using search engines (Google, Bing etc) to reach these brands, the odds of inadvertently ending up on one of those fake websites are also quite high. The illegitimate sites are scams and have entire teams of professionals working 24/7 to ensure that they outrank even the authentic, official brands on search engines, employing exact-match and domain redirect tactics. 

How to Trade With Automated Bots

Automated trading bots are designed for comfort and fast delivery, as reflected in their usability and design. In order to get started with any of the automated trading software recommended above, you only need to follow these steps:

1. Sign Up
Head to whichever website you want to sign up to. You will usually find registration boxes where you’ll have to put in your personal details.

2. Validate your identity (KYC)
Most sites will usually ask for some proofs-of-identity, some sort of official document such as your AADHAR number, PAN number, etc. to verify that you are a real user.
Note: Having a User Authentication Process in place is also proof of the platform/bot’s authenticity. We suggest staying away from sites that do not ask for KYC.

3. Deposit Funds
Most automated trading platforms require a minimum fund deposit of $250 or equivalent whenever one creates a new account. You can deposit funds through credit/debit cards, or bank transfers.

4. Start Trading
You now have your account created using which you can start trading. It is advised to first start out in demo mode to understand how the platform/software/bot functions and to learn about the automation features and algorithmic parameters. Once you’re ready, you can switch to Live Trading and start trading using your deposits.

What Is an Automated Trading System?

An automated trading system (ATS) is a computer-based method of executing trades by establishing pre-defined rules for trade entries and exits. Often used in algorithmic trading, ATSs can help reduce the emotion involved in trading by automatically placing trades once certain criteria are met. Trading platforms may offer strategy-building “wizards” for users to create rules from common technical indicators, while others may choose to develop custom strategies with the help of a programmer.

Automated systems require software linked to a direct access broker and necessitate the use of the platform’s specific programming language. Examples include EasyLanguage for TradeStation and NinjaScript for NinjaTrader. ATSs can monitor the markets for buy or sell opportunities based on the defined strategy and automatically generate orders for stop losses, trailing stops, and profit targets. In fast-moving markets, the instantaneous order entry of ATSs can help mitigate potential losses.

A specified set of rules that identify when to best place an order, when to close a position, or the amount of money to put into each trading product serve as the foundation for an automated trading system. While some trading techniques are meant to predict market ups and downs, others follow sophisticated tactics like randomising orders to make them less noticeable in the market. An ATS’s ability to generate protective measures automatically enables a trader to execute trades considerably more quickly and manage their portfolio with ease. There are different types of bots specific to different types of trading domains such as stocks, crypto, NFT etc.

How Do Automated Trading Systems Work?

An automated trading system (ATS) determines if an order should be submitted based on factors such as the current market price of an option and theoretical buy and sell prices. These theoretical prices are derived from elements like the underlying security’s current market price. A look-up table stores a range of theoretical buy and sell prices for various current market prices of the underlying security. As the price of the underlying security changes, a new theoretical price may be indexed in the look-up table, expediting automated trading decisions by avoiding time-consuming calculations.

In a distributed processing online ATS, structured messages represent each negotiation stage between a market maker (quoter) and a potential buyer or seller (requestor).

A Brief History of Automated Trading Bots

Richard Donchian was the original founder of the conceptual basis for an automated trading system in 1949 when he employed a set of criteria to purchase and sell funds. The idea of rule-based trading later gained popularity in the 1980s when well-known traders like John Henry started employing similar tactics. The portfolios of clients were automatically managed by this kind of software. However, Jon Stein’s “Betterment” was the first service to be made available on the open market without any regulation.

Since then, the system has evolved in tandem with the exponential progress being made in the IT sector. Today, people worldwide use automated trading systems to manage their assets and generate exponential earnings. In 2014, automated trading system orders accounted for more than 75% of all stock shares traded on American exchanges, such as the NASDAQ and the New York Stock Exchange. Such has now extended into the fields of crypto, NFTs and blockchain.

BlackRock – one of the world’s leading investment firms with assets under management (AUM) valued at $10 trillion – has been employing machine learning technology since 1988, when they had launched Aladdin. This portfolio management software, which is BlackRock’s automated trading bot for exclusive use, carried out trades to maximise assets amounting to $4.1 trillion as early as 2013, a figure which represents 7% of the world’s total financial assets at the time. This technology has been around for a long time but has only recently garnered any attention from retail investors, with the launch of the aforementioned software. These tools which have been rendered available to the wider public have been developed by Wall Street insiders seeking to empower retail investors to gain access to the same tools as those elite investors disrupting the market for their own advantage. Their motivation stems from an ethical impulse to ensure that the market remains fair, free and balanced.

Different Types of Automated Trading Bots

Automated trading bots are specifically developed for different market applications. Whilst some bots combine several markets onto the same platform, most will be specifically developed for a more narrow focus in order to ensure maximum accuracy in their predictive capabilities.

Crypto Trading Bots

Crypto trading bots are robots or automated algorithms that are essentially programmes designed to automate trades in order to get the highest possible returns against your bidding/investments. You can simply access a crypto bot trading platform and initiate trading through the bots according to the software/platform’s pre-determined rules, or you can also configure them to meet your own trading requirements.

They are most especially useful in times of high market volatility or during long bear markets as the machine learning technology, which they employ, constantly improves its market predictive abilities with every single trade. The accuracy of their predictions far exceed the capabilities of even the most seasoned expert investor, which is why they constantly generate greater profits during a bull run, whilst during a bear market, they are arguably the only tools which one could set up in hopes of seeing any returns. This happens because of the speed rate at which trades are carried out, with some robots carrying out up to one trade per 0.01 seconds, thus increasingly amassing small profits which – after carrying out one trade at such speeds over a period of days – would yield considerable returns to its users.

Bitcoin Bots

Bitcoin bots are simply crypto trading bots that have been specifically designed to yield high returns through Bitcoin trading. These bots analyse the market to initiate orders according to the market conditions to generate high profits against your investments. They are always a better choice compared to manual trading as they compute the most suitable entry and exit times, thereby considerably lessening your chances of loss.

Stock Trading Bots

Stock trading bots enable stock traders to purchase, sell, and trade stocks and other assets automatically through the use of a bot that executes transactions based on a definite trading strategy, with the objective of generating profits. AI trading, back testing functionalities, algorithmic market entry/exit, and position sizing are some of the prime features of stock trading bots. To learn more about crypto trading bots, click here.

Projections for Automated Trading Software

By 2030, the global market for algorithmic trading is projected to be worth USD 42.99 billion, growing at a CAGR of 12.2% between 2022 and 2030. One possible explanation for this expansion is the rising need for efficient, dependable, and swift order execution as well as decreased transaction costs. To take into account time, price, and volume, many businesses turn to algorithmic trading solutions.

Automated trading systems and platforms, which use software programs or “Expert Advisors” to execute trades based on predetermined strategies, have seen increased popularity among Forex traders. According to a report by MarketsandMarkets, the global algorithmic trading market is projected to grow from $11.1 billion in 2020 to $18.8 billion by 2025, at an 11.2% CAGR. But how effective are these systems? The answer is that success depends on several factors, including the quality of the software, the chosen strategy, and market conditions. While automated Forex trading can work, traders should carefully research the best-automated trading platform and consider the risks before investing.

In 2009, SEBI approved exchange members to provide corporate clients with the Direct Market Access (DMA) capability, which permitted automated trading in the Indian market. Also in 2009, FIIs began employing DMA via asset managers, and numerous fintech businesses launched trading platforms in India. Automated trading now accounts for more than one-third of overall world exchange turnover.

What must be kept in mind is that the Indian market is still fresh for generating earnings. Those who know about the right bots and software can turn their portfolios into massive profits overnight and can substantiate a long-term strategy of passive income. Before the technology becomes mainstream and nears its saturation we strongly advise you to get in and start earning.

With the AI craze unfolding since November 2022 and investors rushing to invest in ChatGPT, these market disruptive technologies – which have been using the same machine learning technology to automate trades for some of the world’s largest companies – are now swiftly taking the spotlight. As more and more retail investors are discovering the application of these AI technologies into the world of finance, many analysts speculate that this marks the official start of the new AI rush / AI bull run.

Are Automated Trading Bots Legal and Safe?

Although some might have their say against it, automatic trading and usage of bots is completely lawful. Trading bots are technically advanced and are vetted in the stock and currency markets. However, not all brokers, including cryptocurrency trading companies, permit the use of bots.

Since the market is still unregulated, it is of crucial importance to do extensive research before choosing a bot to deposit with. It is therefore always suggested to conduct a thorough background check and learn in-depth about the platform/software and the respective domain in which you are thinking of investing.

Advantages and Disadvantages of Using Automated Trading Systems

Advantages of Automated Trading Systems (ATS) include minimising emotional mistakes, enabling backtesting, ensuring consistency, improving order entry speed, and diversifying trading. ATSs reduce emotional errors by executing trades automatically based on pre-set rules, maintain discipline during market volatility, and allow traders to evaluate their rules using historical data to minimise potential mistakes.

However, disadvantages of ATSs comprise mechanical failures, the need for monitoring, and over-optimisation. Despite algorithms potentially performing well in live markets, internet connection issues can cause malfunctions. Additionally, ATSs require monitoring due to technological failure susceptibility, and algorithms with strong backtesting performance may lead to over-optimistic expectations, resulting in significant failures.

How to Identify Illegitimate or Fake Automated Trading Software

Sadly, since the market is still heavily unregulated – most especially for crypto trading bots – there are all too many scams or fake copycats purporting to be the legitimate brands which they are impersonating. These are scam websites that are identical to their legitimate counterparts but – in reality – just target customers who are merely looking for the real brands. You could usually tell these apart by minor giveaways, such as the URL structure or poorly written text in the meta titles and meta descriptions or even by the content they have scraped from legitimate sites. However, this can be all too overwhelming for the average user and by merely Googling the brand name, there is no guarantee that you will not land on one of these fake sites.

an example of a deceitful site pretending to be a real Bitcoin bot

Deceitful Techniques to Divert Users Away From Legitimate Sites

These resort to black hat and dangerous techniques to divert users away from the real brands when customers are searching for them, such as scraping content from the legitimate sites or even cloaking text for advantageous ranking purposes. As a result, these fake sites might find a window of opportunity when they manipulate search algorithms to the extent of being displayed above the legitimate sites. Even if this only happens for a short while, it is enough to get a lot of new sign-ups from innocent people who are merely looking for the real sites on search engines.

This is why it is of crucial importance to always read the reviews and to access these automated trading bot from reputable sources. In doing so, you have the guarantee that you will be accessing the legitimate and official versions of authentic bots. Review sites claim to carefully verify all robot traders on the market are a necessity when there is yet to be any regulation in place.

Source code from the fake robot site – the most telling signals that the website is fake can sometimes be found in the metas or cloaked content

How CoinBharat Assigns Ratings to Automated Trading Software

As stated before, we have an extensive vetting system in place. Our writers diligently research and aggregate information from expert publications from across the globe, in several languages, as well as testimonials from users who have thoroughly tested and created accounts for every recommended bot. These users have supposedly traded on and withdrawn money from these sites, evaluating them for compliance with T&Cs, user safety, privacy, and other factors. This is how every review bot is assigned a score of reliability, based on the aggregate information in the online medium from those claiming direct exposure with such software.

A higher score is given to testimonials from users who have placed at least 10 deposits over a longer period of time – spanning at least six months – from multiple business and personal accounts, in order to test them on all above-mentioned features on a regular and recurring basis. Third party reviewers also open tickets to their Customer Support teams to assign a score on their response time, in addition to a separate score on how thoroughly they address our issue in a polite, courteous and reliable manner.

Another big part of the score is determined by how user-friendly and intuitive their dashboards are, allowing new customers to quickly set up new trading preferences. It is also important that once the automated trading process begins users receive regular notifications about their budget, returns and future projections, so that they are always kept in the loop. Furthermore, another major rating factor is determined by how easily users can cancel or modify their automated trading preferences and how quickly the robot will comply with these new requirements. If the bot features automatic risk-aversion parameters, you will not have to manually intervene at all. All automated trading bots which have been assigned a rating of 4 stars or higher seem to be embedded with such risk-mitigation triggers.

Be advised that the market remains entirely unregulated and – considering that even established brokers – the likes of FTX – could prove untrustworthy, it is vital for your own safety to always read the reviews before choosing a bot to open an account with.

Our scoring system for all robots that we review and recommend is entirely dependant on several considerations. Our writers gather information on all robots reviewed robots from users and publications showcasing an interaction with these bots over a period of at least six months, testing them on:

• How compliant they are with all legal requirements
• The security of their payment processing methods
• Deposit and withdrawal conditions / requirements
• How accurate their market prediction technology really is and what returns they generate within six months (across multiple accounts)
• The trustworthiness, efficiency and courtesy of their Customer Support teams
• Trade speed rate and success rate (recurring over six months from multiple accounts)
• How user-friendly their dashboard and mobile app (if they have one) really are
• How thoroughly they have implemented risk-mitigation and contingency triggers to prevent the bot from doing any overtly-risky trades
• How transparent they are with their customers about the bot’s activity

All of these factors are indispensable in determining if the automated trading software is reliable or not. This is why third party reviewers spare no expense when vetting these brands to ensure that those looking to invest  have unhindered access exclusively  to the legitimate robots.

Investing Responsibly

The world of investing may be overwhelming, especially for those who are just getting started. You want to increase the risk-adjusted value of your portfolio, but you are not sure where to begin. It is a widespread and very understandable concern, but one that may be alleviated by following some common investing guidelines. Here are our top 5 pieces of advice for anyone who’s wanting to start their investment journey:

• Always invest amounts which you can afford to lose.
• Be aware of the market’s turbulence. Always do your own research.
• Always have your bankroll in check. Prudence pays off as does knowing when to withdraw.
• Begin small and know when to stop.
• Have a diverse portfolio with several robots. If one ever fails to make the returns you had hoped to see, another one could easily supplement.

Latest Updates on AI

At the International Music Summit in Ibiza, musician Grimes gave a keynote speech about the future of music and AI, expressing her support for the use of AI in music creation. Grimes criticized the current gatekeeping and copyright systems in the music industry and suggested that AI could help democratize music creation. She also spoke about the possibility of using vocals from deceased artists and suggested that some artists might be open to the idea. Following her speech, Grimes launched a service called GrimesA1-1 Voiceprint that provides access to her vocals for use in AI-created music. The service costs $9.99/year and allows creators to distribute their music on streaming services. Grimes encouraged creators to be tasteful in their use of her name and likeness.

Conclusion

The main takeaways to remember before commencing with vetted and recommended automated trading software:

• Automated trading is performed by expertly developed bots and is always better than manual trading.
• Different automated trading software is available for stocks and crypto trading. According to your choice of market, they come with different features and functionalities.
• Automated trading is legal in India, although the aspect of safety primarily depends upon your background research and choice of software.
• All of the software that we suggest are vetted by experts.

Automated Trading is still relatively young within the Indian market. Operated responsibly, they can generate impressive returns. Most of them are easy to use and come with little to no learning curve so if you are new to automated trading.. If you have not started using them, we definitely recommend you pick any of the software that we mentioned above and get started with your trading journey.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Always exercise caution with new technology. Reviews are the subjective opinion of their writers and remain entirely speculative. There is no substitute in the form of opinions unintended as financial advice for your own due diligence on the matter when rendering your own investment decisions