Trade Algo Or Manual? Or Does It Really Matter?
Anyone who has ever set foot on the path of trading knows that it will eventually reach a crossroads leading to either manual or algorithmic trading. And it is here where many traders think that their skills will play the role of the definitive factor in profit-making. But they are so wrong.
The software is what makes or breaks a trader these days. In fact, software, like MoonBot, has grown so advanced that it outstrips anything exchange interfaces can offer or what traders can think of in their skillsets. Given that the software is faster than any trader can ever hope of ever becoming, it is quite clear why so many traders are turning to seeking profits through algorithmic trading.
1 It’s All a Question of Orders
For those still not familiar with the terminology, manual trading is trading on exchanges through human decision-making for entering and exiting trades. In other words, each order is placed manually with little or no involvement of software. Algorithmic trading, on the other hand, involves executing a large order or a large set of orders using automated, pre-programmed trading. This is done through the use of software instructed to take into account a set of variables, such as time, price, and volume to send small slices of the order, also known as child orders, onto the market over time.
Needless to say, algorithmic trading is faster than manual trading and can be used for considerably larger volumes. Such practices as scalping are done using algorithmic trading, since the software is capable of determining the entry and exit points in a matter of milliseconds and placing the order in a matter of seconds. No human involved in manual trading will ever be able to match such speeds.
MoonBot is a proven, effective, fully operational and renowned software on the market that is being used to great effect by countless traders worldwide. The success of the bot can be attributed to its speed of asset selection and order placement standing at under 3 seconds, and the broad range of instruments offered by its interface terminal.
2 DIY Or Rely On The Software?
It would be unfair to say that manual trading is outdated and that the software has completely dominated the market. Algorithmic trading does have its disadvantages, the main of which is the need to know some programming languages. Another disadvantage is the lack of control that comes with automation.
Manual trading has its shortcomings as well, the main being the speed of reaction limited by human biology. That is why every trader should make their choice of trading approach based on testing the method most profitable for them.
Professional traders prefer to combine both manual and automated approaches. If high intensity trading with front-launching, such as scalping is required, there is no alternative but to resort to the help of bots. Humans will simply not survive more than 2-3 hours of monitoring trades at such speeds. That is why portfolio investment has already been automated years ago. On the other hand, manual trading is more efficient with strategies that are very difficult to formalize, as much depends on the intuition and personal experience of the trader, as well as their ability to take into account the basis of the trade.
When using manual trading, traders need to be careful, since all the calculations are done by the user without the help of software bots. The advantage of this approach is the ability to control the opening and closing of each order. Thus, the user is always aware of the situation on the market and can choose the appropriate currency pair for the trading strategy. It also helps make plans for the future. A trading plan for manual trading helps maintain peace of mind and avoid loss of money regardless of market conditions.
At the same time, the use of automated trading makes trading faster and easier. Traders can trade using bots that can be set to operate, leaving the user free to go about their business without the need to follow the charts. This is especially convenient for traders who do not have enough time to trade on their own. Automated trading through MoonBot allows users to earn, while going about their own business.
3 It’s All About Being Smart
The modern trader cannot trade without the basic “smart” functions of orders and consider them to be the bare minimum necessary set of functionality.
MoonBot offers its users some of the most highly demanded Smart Orders on the market, namely Stop-Loss, Trailing Stop and Take Profit.
A Stop—Loss order is an order placed to sell an asset when it reaches a certain price. Stop—loss orders are designed to limit an investor’s loss on a position.
Trailing Stop orders set the stop price at a fixed amount below the market price with an attached «trailing» amount. As the market price rises, the stop price rises by the trail amount, but if the asset price falls, the stop loss price does not change, and a market order is submitted when the stop price limit is hit.
A Take Profit order is an order that closes a trade once it reaches a certain level of profit. When the take profit order is reached on a trade, the trade is closed at the current market value. Take Profit orders are also sometimes referred to as limit orders.
The MoonBot trading construct does not only offer the most demanded instruments for profitable trading, but also has a built-in mechanism that automatically detects pump schemes. The mechanism is so effective that it allowed some traders to reach the Top-25 list on Binance.
But MoonBot is not stopping there as the development team has opted for a modernization of algorithmic trading by launching the development of MoonTrader that will include arbitrage trading.
4 It Has Already Been Done
At the moment, MoonBot has 13 types of strategies for working through algo-trading with more than 200 parameters. In addition, the pump detection mechanism incorporated into MoonBot is unique on the market and allows its users to know exactly when a certain asset is going to undergo a pump.
The bot is able to determine cryptocurrency pumps automatically by continuously analyzing market data in a multithreaded mode with a 3 second step. The bot is not designed to work in a fully autonomous mode, as users should manually control the parameters of the algorithms and the coins found by the bot.
In the current version of MoonBot, there are 4 methods of auto-detection and all of them are based on the analysis of anomalous deviations of market data from the average. The first two methods known as SuperFast1 and SuperFast2 were used to detect fast flash pumps in cases where the pump time was known in advance and only the coin had to be selected.
By relying on the mechanism, traders will always be able to catch the right moment of entering an asset at the time when it will be traded at its highest. The speculation of those in a cabal regarding any certain coin to be pumped is thus negated and the opportunity of profiting from the pump is given to anyone using MB.
5 The Next Step
Algo-trading in MoonBot has been successfully implemented and used to great effect by its users. But algo-trading is difficult for newcomers on the market, and that is why the MoonBot development team has decided to release a new product called MoonTrader. The new software will build on the success of MoonBot and reduce the entry threshold for algo-trading by incorporating a block interface and a strategy constructor.
The new MoonTrader interface will include logical operators, such as IF, AND, OR, NOT, which will be available with block visualization and other statistical information in real time. The block interface of the strategy constructor will be user-friendly and will allow users to implement any trading ideas without the need to know any programming languages.
Additional filters and conditions will be added to the set of parameters as desired by the user. Thus, beginners and professional traders will be able to work out their ideas in a single convenient and accessible interface. This approach will lower the entry threshold to algorithmic trading in principle, as well as allow users to create unique and extremely complex algorithms.
6 Arbitrage Incoming
There are currently only 2 exchanges available in the MoonBot terminal: Binance and Bittrex. Each exchange has its own API, or a set of commands for trading through third-party applications. This set is unique for each exchange and differs both in the functionality of the exchange itself, such as the presence of OCO, iceberg orders, conditional orders, leverage, and the implementation of the API, like limits on user actions, websocket channels and other nuances. The MoonTrader terminal will have a separate terminal for creating modules specifically for adding exchanges quickly and with ease.
The terminal’s arbitration mode will also be a separate tool:
- The terminal will analyze data on the selected exchanges;
- It will search for arbitration windows as per user settings;
- It will notify the user or trade automatically.
At the first stage of development, several large exchanges are enough. At the second stage, the list will be expanded with exchanges with similar mechanics and API sets. At the third stage, the exchanges that are of interest to the audience from the point of view of arbitration and have sufficient market coverage will be added to the list.
7 Coming Up Next
In the next article, we will tell you how to effectively test trading strategies, how not to flush your first deposit down the drain, how to earn more from every order, and whether to use trading signals or not.
While many are still thinking whether to opt for manual or go with algo-trading, hundreds of traders are already successfully making money using both methods on MoonBot. The immense amount of feedback from traders has led the development team to create MoonTrader and implement both manual and algorithmic trading in accordance with the highest requirements of the market.
Check us out at https://moontrader.com