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Algorithmic Trading Software: Should you use Automated Trading to Increase your ROI?

Algorithmic trading software helps in automated trading of all kinds of assets as well as markets. In 2020, 10% of the hedge funds in Europe and the United States used algo trading software for trading more than 80% of their value. In 2018, the contribution of algorithmic trading was around 60-73% of all US equity trading. In NYSE, 80% of trades are executed through the use of algorithmic trading strategies. 

As per Coalition Greenwich, in the year 2020, the 12 largest investment banks in the world have earned around US$12 billion. More than 50% of institutional investors believe that algorithmic trading has the capability of improving workflow efficiency significantly. Almost half of the big-denomination trades (ticket sizes of more than US$10 million) have been executed with the help of algorithmic trading software in 2019. 

Market and industry research has shown that the algorithmic trading market will grow at 11.23% CAGR (Compound Annual Growth Rate) in the coming 5-years (2021-2026). 

What is the reason behind such a robust growth of algos? It brings a lot of discipline and predictability. While human traders can be affected by emotions, algorithmic trading does away with the emotional quotient and only depends upon strategies. 

To have a better understanding and help you decide whether to choose algorithmic trading or not, let me walk you through its different aspects. After going through this article, you’ll be in a position to decide whether you should choose algo trading or not. 

What is Algorithmic Trading Software?

Algorithmic trading is also known as algo-trading, automated trading, or black-box trading. A computer program or software has some pre-defined instructions (known as algorithm) for placing buy and sell orders when certain conditions are met. 

The good quality automated trading software has the ability to generate profits at a very fast pace and frequency, which is not possible for any human trader. The sets of instructions given through an algorithm to a software depend upon the quantity, price, timing, and other mathematical models. 

How does Algorithmic Trading Software Work?

Let me explain how an automated trading program works with one of the simplest examples. 

  • Suppose a trading software is instructed through an algorithm to buy Bitcoin when 50 DMA (a short-term moving average) crosses over 200 DMA (a long-term moving average). This means the algo has instructed the software to buy BTC when there is a golden cross, strong bullish market signal. 
  • Trading software may be instructed to sell BTC when there is a bearish market signal such as death cross (200 DMA crossing over 50 DMA). 

These are the two simple instructions given by the algorithm of the software, which in turn monitors the price of bitcoin BTC as well as the moving average indicators. When these pre-defined conditions are fulfilled, buy orders or sell orders are placed. 

This is extremely helpful for a trader. You don’t have to monitor live prices and graphs to find the right opportunity to buy or sell bitcoin. The algorithmic trading software identifies the trading opportunity and places trade automatically on your behalf. 

What are the Benefits of Algorithmic Trading?

  1. Best Possible Price

The automated trading software uses a pre-defined set of instructions to buy or sell bitcoin, other cryptocurrencies, stocks, or other assets at the best possible prices. 

  1. Instant and Accurate Trade

Algo trading program helps in placing trade orders instantly and accurately. This enhances the chances of executing orders at the desired prices.

  1. Low Cost of Transaction

The transaction cost gets reduced because only the qualified trades (depending upon strategies or pre-defined instructions and not on the basis of emotions) are carried out.

  1. No Manual Errors or Mistakes

As the execution of trades is done by software on the basis of pre-defined instructions, there is no chance of any kind of manual error or emotion-based trading mistakes. This reduces the risk factor associated with trading to a great extent. 

  1. Backtesting Facility of Trading Strategy

Algo trading provides you the opportunity to use historical and real-time data for backtesting the viability of trading strategies.

What are the Popular Strategies you can use for your Algorithmic Trading Software?

  • Trend-following Strategies
  • Arbitrage Opportunities
  • Index Fund Rebalancing
  • Mathematical Model-based Strategies such as delta-neutral trading strategy.
  • Mean reversion or trading range strategy
  • Volume-weighted Average Price (VWAP) strategy
  • Time Weighted Average Price (TWAP)
  • Percentage of Volume (POV) strategy
  • Implementation Shortfall strategy

What are the Most Reliable and Popular Algorithmic Trading Bots?

The top 10 automated trading bots are:

  1. NapBots
  2. Tickeron
  3. Mudrex
  4. Gunbot
  5. Coinrule
  6. Trality
  7. Wunderbit
  8. 3Commas
  9. Stoic
  10. Botcrypto

Buy Bitcoin, Cryptocurrencies, Stocks, and Gold Now

If you are ready to invest in stocks and cryptos or buy Bitcoins through online brokerage accounts of centralized or decentralized cryptocurrency exchanges, you can do so in a legit way by investing through stock investing and cryptocurrency apps. You have to open an account with such an exchange or online broker (including trading apps and investment apps such as TD Ameritrade). Then verify your details (including basic personal information) and fund your stock or cryptocurrency trading account. 

The best thing about the Bitcoin and crypto market is that the transactions are done without the involvement of banking entities. This is one of the reasons why more and more investors (including corporates, venture capitals, and institutional investors) are heavily investing in cryptos. 

You can start depositing funds to your stock or crypto exchange account to buy company shares or cryptocurrencies. This can be done by simply connecting your online banking account (savings accounts, checking accounts, or other account types). Besides transferring fiat currency money online through bank transfer, you can make payments with other payment methods including credit cards, debit cards, and others. 

If you need further assistance, you may consider taking help from the vibrant and helpful trading communities. You can trade cryptos with credit cards (business credit cards, personal ones, or citi custom cash cards), debit cards, or other payment options through reliable crypto trading web platforms. 

You can also check the savings calculator to know how much you should save on a weekly, monthly, or yearly basis. Check the financial news to know more about the prospects of various assets so that you can build long term wealth.

In case you are bullish on the future prospects of gold, stock and ETF trading, crypto market, Bitcoin BTC, Ethereum ETH, Bitcoin Cash BCH, Litecoin LTC, Ethereum Classic ETC, Bitcoin SV, Wrap Bitcoin, and other altcoins, you can start investing in stocks, gold, Bitcoin, and other altcoins with USD. Once bought, transfer them to:

  • hot wallets (including mobile app wallets and software crypto wallets) or 
  • cold wallets (including most secure hardware wallets) 

Hold them for a longer time period to let the Bitcoin BTC price increase. Keep your cryptocurrencies safe with:

  • Ledger Nano S
  • Trezor One
  • Other Ledger and Trezor models

Crypto market investing will provide you a higher return in the long run. The ROI from crypto investment is much more than investing in:

  • Stocks
  • Mutual funds
  • Index funds
  • Real estates
  • Yield savings accounts
  • Real estate investment trusts
  • Fiat currency trading (forex trading)
  • CD rates
  • Trade Options
  • Money saving in savings accounts
  • money market returns
  • Exchange traded funds
  • IRA accounts (including Bitcoin IRA), and others. 

In fact, many retirement funds or IRA accounts such as Roth IRAs are allowing digital currency investors to purchase XRP, Bitcoin, Chainlink, and other digital assets. These retirement funds are increasing investor choice by allowing them to invest a small percentage of their money in cryptocurrencies. This is, in turn, increasing the prospects of these funds to provide their investors to get higher returns. If you are thinking about building wealth, you should include cryptos in your portfolio like other crypto investors. 

Therefore, it can be concluded that holding Bitcoin Ethereum and other cryptos can help you to build real wealth and multiply your net worth. You can learn investing basics to buy crypto currency and other digital assets to make more gains. Start going through Wall Street Journal and other investing magazines on cryptos to learn more about investing in crypto market and make better financial decisions. Learn about valuation calculation to true bitcoin value and assess the overpriced or underpriced situations instantly. 

As a beginners guide, you may also check out the trading basics provided by various cryptocurrency exchanges such as Coinbase, Binance, Kraken, and other crypto APIs. There are many brokers suitable for beginners as well. So, read reviews of customers before joining a crypto exchange. There are many brokers for beginners in the USA through which you can trade and invest extra cash and investible fund in fractional shares and stocks funds. 

You should definitely learn about:

  • Trading for beginners (Step By Step guide)
  • Types of stocks including penny stocks, value stocks, growth stocks, blue-chip stocks, etc.
  • Gold standard
  • Futures contract
  • Gold miner, gold mining company, and gold mining stocks
  • Bad debt and bad credit
  • Home equity
  • Employment tax records and receipts
  • Periods of limitations
  • How credit score is determined?
  • World gold council
  • How is the price of gold and other precious metals determined?
  • How to rent out your car to make money
  • Significance of owning gold
  • Stock plans
  • Fixed income assets
  • Stocks and Funds
  • Spot price and futures price of gold
  • Write an eBook to start making money 
  • Use spare time and personal internet connection to earn extra cash through part-time graphic design
  • Asset allocation
  • Investment gold
  • Different ways of buying and selling golds
  • How to make money from Google adsense?
  • Gold stocks
  • Utilizing market news for profit
  • Significance of Dow Jones in the stock market
  • How to increase your disposable income through balance transfers credit cards?
  • Different trade ideas
  • Warren Buffet’s investing styles
  • Passive investors
  • Different investment goals
  • Teaching as a private tutor in your free time
  • Cash Management
  • Investing for beginners
  • How to choose brokerage firms and stock exchanges?
  • Gold markets
  • Trading strategies for beginners to time your entry and exit
  • Using price actions to one’s advantages
  • Teach English to earn a lot of money online and start saving
  • Browsing websites can also help you earn little extra cash
  • Margin Requirement
  • Margin Call
  • Margin Account
  • Day Trading Margin
  • Trend Trading
  • Market Maker
  • Options trades
  • Fundamental Analysis
  • Short Sell
  • Market Research
  • Success Rates Of Day Trades
  • Trading Vs Investing
  • Swing Trading
  • Time Frames Of Trading
  • Successful Ways Of Buying Stocks And Cryptos Throughout The Day
  • Risk Management
  • Financial Industry Regulatory Authority
  • Trade On Margin,
  • Foreign Exchange Trade
  • Pattern Day Traders
  • Day trading rules
  • Active trading
  • Secrets of a successful day trader
  • Stock price actions
  • How to pay off debt quickly
  • Planning for retirement 
  • IRA guide and fruitful ways of increasing returns of individual retirement accounts
  • Stock price determinants
  • Charles Schwab’s modern approach to investing and retirement
  • Day Trading Tools, trading software, and different financial tools. 

Defi tokens and NFTs (Non Fungible Tokens) are the next generations of crypto coins. These decentralized coins have started to become very popular among active traders who trade cryptocurrency. You can buy sell them through crypto trading platforms too. 

Whether you buy Ethereum ETH or buy Dogecoin, you should also invest in: 

  • Chainlink LINK
  • Litecoin LTC
  • Binance Coin
  • Cardano ADA
  • Polkadot DOT
  • Dogecoin DOGE, and 
  • Trade Litecoin LTC for better diversification of coins

To diversify your portfolio, you may also buy stocks through stock brokers for beginners and pros.

Get better guidance on improving your personal finance, retirement planning, management of cash flows or capital gains, and investment ideas from financial advisors, investment managers, and wealth managers, especially the ones who are not averse to cryptocurrencies such as Bitcoin and others. 

While day trading, you should always try to invest only that much money which you can afford to lose. When you do margin trading, be very careful. Financial protection must be there in your mind always while you make cryptocurrency trades. That’s why having a secure financial plan is so important. 

Invest money in stocks, gold, and other cryptocurrencies through centralized or decentralized exchanges and reliable online brokers. 

Choose NapBots to Increase ROI

Trading Robots (such as NapBots.com) automatically scans the market in real-time and trades for you. They run 24/7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.

Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots so that they don’t miss any big market movement.

NapBots.com is a Trading Bot, cloud-based platform, on which you can connect to major exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda. 

The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. Let Napbots take full control over your trades in just a few clicks. Now, sit back and enjoy earning money. 

You may also check “Napbots Review - Simple Way To Increase Your Crypto Returns” before taking the plunge.

What’s so special about NapBots?

NapBots crypto trading software is special because it comes with:

  1. A unique trading algorithm that processes market data for you 
  2. A unique crypto trading bot library so that you can create your own mix of trading strategies
  3. Autopilot mode that enables you to automate trading 24x7
  4. An easy-to-use interface so that you can copy the proven strategies of NapBots to make successful trades and make money

How to Get Started with NapBots?

NapBots is easy to start with. It involves just 3 steps:

Step #1: Connect to one of the available trust exchanges.

Step #2: Select from the unique list of performing Bots of NapBots

Step #3: Choose a plan that suits your investment style

Once you have completed these three steps, NapBots is ready to trade cryptos and earn money for you. Happy Trading!

Why Choose NapBots?

  • NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public. 
  • The setup and installation process are easy. So, the non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI. 
  • The team of professionals behind NapBots has extensive experience in the financial market. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.