Take Your Crypto Trading to Next Level by Automating the Trades via Bracket Orders

Mr. Tom is fond of crypto trading market and attracted by the short-term profits it offers. He trades frequently but couldn’t devote much time to analyze market and market trends as he is busy with his daily chores as well as regular day job. So, he is looking for a way which is both automated as well as time-efficient. He conducts online research and gets to know about the benefits of automated crypto trading and advanced order types.

Let’s understand what he found and will it be profitable for you too:

Automated crypto trading

The necessity to study the market 24x7 can turn your part-time craze of crypto trading into a full-time job. Luckily, we have automated crypto trading. And, this is something that Mr. Tom has found over the web. Automated trading allows traders to trade without their actual presence on the system. It’s all about setting up the best crypto trading bot, or using an advanced order like Bracket order to follow any kind of strategy and get ready to perform trades.

Automated trading is some form of algorithmic trading which involves the use of computer programs to execute trades as per the preset or predefined criteria. This kind of trading eliminates the need for traders to monitor their positions and react accordingly whenever the market moves as per the criteria. While automating the trades, the trader can focus on the other aspects of trading while earning profits automatically.

Popular methods involved with automated trading

1. Crypto trading bots

Automate your trades by making use of crypto trading bots from the popular exchanges or platforms. These bots will perform 24x7 on behalf of the trader by monitoring the market so that you don’t miss any kind of profitable trade again.

2. Crypto trading terminal

Choose the best crypto trading terminals like TrailingCrypto as it will allow you to access all your exchange accounts through a single interface. This will also help you to manage all your portfolios at a single place and connect you to all exchanges while making use of APIs.

3. Trading signals

The best crypto trading platforms offer trading signals for the traders and more for the trading bots to start and stop the trades at the right time. Signal trading bot is the best example for this.

4. Copy trading

This is another popular form of automated crypto trading helping beginners or novice traders to copy the best trading strategies from the expert traders. Choose the right trader and bot to copy only the most profitable trades.

Among various automated trading methods, bot trading is gaining huge popularity. There are many different kinds of bots available that traders can choose. But arbitrage or grid trading bots are among the most popular options. These bots follow different strategies and helps traders to earn profits from the market movements.

How and where to start

While making use of trading bots is the most viable option, keep in mind that these bots cannot eliminate the risks completely. They just automate the trading process and improve trading process. This tool can help both newbies as well as experienced traders to gain their profits. However, you’ll need a basic understanding about the market as well as trading tools to set the trading bot properly.

Once you choose the bot from any trading platform, you need to login to the trading account on exchange to generate APIs and adding them to the bot. After that, you can pick up a trading bot or strategy, trading pair, and the desired position. After, you’ve done with all this, it’s time to configure the details. At TrailingCrypto, you can choose a take profit target and a trailing take profit target along with setting the order volume and more. Additionally, you may choose stop-loss as your risk-management tool.

Once the trading bot is live, it’s time to monitor the results! So, Mr. Tom finds it a better option to trade automatically.

Benefits and drawbacks of automated trading

An automated crypto trading is beneficial for traders who make decisions based on any kind of fear or greed. This trading removes emotions and places trades based on the preset criteria. The automated systems also help traders to maximize profits by executing multiple transactions at a time and taking advantage of short-term price fluctuations. Apart from this, automated trading can reduce risks by limiting losses if trades set before turns unfavorable.

Besides several benefits, there are some drawbacks too which should be considered before finalizing any strategy. These systems rely on the accurate data feeds and if these feeds are not accurate, your algo can execute trades based on faulty information which may result in potential losses. Another drawback is the potential for errors in the codes which may turn into massive losses again.

So, what should a trader do to stay secure?

While automated trading is beneficial in many ways, it’s important for traders to use automated trading systems in a secure and responsible way. Here are the few tips which may help Mr. Tom to stay secured:

· Choose only the trusted and reputable trading platforms like TrailingCrypto

· Use 2FA

· Understand the risks before getting started

· Monitor your account and trades regularly

Following these tips can help Mr. Tom to use algo trading in a more secured way. Another important strategy that he finds more profitable on the web search is automated bracket order. Let’s understand about this as well:

Bracket order

Bracket order is a kind of conditional order where the traders can enter a new position along with a stop-loss and the target order. As soon as the main order is executed, two more orders will be placed by the system, i.e. profit taking and stop-loss. Whenever one of these orders is executed, the other one will be canceled automatically.

This is a special type of order where a target and stop-loss order is placed in a single order. Either it will hit the target or stop loss. If the target hits, the stop loss will be cancelled automatically, and if the stop loss gets hits, the target order will be cancelled automatically. This makes the overall trading automatic.

One can’t use bracket orders for regular trading as here in this order; the outcome of the order depends on the crypto asset and the price levels selected. Traders can use these orders smartly for futures trading on multiple exchanges. The best crypto trading platform like TrailingCrypto offers OCO and OSO orders where traders can customize these orders easily.

How does bracket order work?

So, bracket orders combine three orders including the original buy or sell order, the profit taking target, and the stop-loss value. Instead of using normal stop-loss, traders can also use trailing stop loss in this order type which moves the stop-loss price up and down depending on the market movement. The main drawback of using trailing stop loss is that, you will not be able to edit the order.

Let’s understand this order with an example:

If you set your “take-profit” value at $140 and “stop-loss” at $90, corresponding with a primary order at $100 and the asset price goes up to $120 but then the price drops, and hitting $90 (before reaching $140), your “stop-loss” order will be triggered and executed, while canceling the “take-profit” order at the same time. All in all, considering bracket orders for your trade could be the great option whenever you are trying to stay within a defined or your target price range.

Due to the way bracket orders works, it’s completely possible to set this logic up algorithmically via making use of API. However, the full functionality enabled within the best crypto trading platforms allows for better risk controls. And this will further help minimize potentially costly mistakes.

Mr. Tom finds it really interesting and wants to execute it so as to automate his trades. But, now he is thinking of using it but don’t know when to use it. Let’s consider this scenario as well.

When should a trader use bracket order?

This order is ideal for traders who want to trade even if they are not present at the system but there are price fluctuations in market that can help them earn profits. Traders can set bracket order before the trade gets executed, and at the same time, it offers flexibility and control over the trader’s profit and loss. The trader can set this order to an already open position while placing a limit or market order. Bracket order can be placed while placing a market or limit order. After setting a bracket order, modifications are not possible.

Advantages and disadvantages of bracket order

By bracketing your order, you may protect yourself from incurring any losses while securing the ways of profits. Here are the few advantages of bracket orders:

· This is an automated order which helps you to trade automatically if the trader is away from the system

· It offers maximum possible options available for a single order

· Ensures automatic risk management

· As a stop-loss order is there, it gives a sense of security to the trader

Disadvantages

· This order doesn’t allow you to put a limit order during exits

· Entry via stop-loss is not permitted in this order

· Bracket orders can’t be modified

If your trading plan is simple, you can create bracket orders easily encompassing your entry and exit plans.