Even though it sounds like a dream, now it is possible to make money while you sleep and you don’t have to be a wealthy 1% elite to do so. If you think this sounds like a plan, read on, we are sure that this is gonna change your mind once you learn more about automated crypto trading software.
You must be wondering why we are writing on this topic? Well we have written on this topic several times now, validating and reviewing many bots on the market but now time has come to give a spin to one of the less known but surprisingly good bots Bitcoin Evolution.
This year is a match made in heaven for automated trading software like Bitcoin Evolution as this (and most of other bots) thrive in the high volatility environment.
What is Bitcoin Evolution?
Bitcoin Evolution is a cloud-based crypto bot that you can use to automate your cryptocurrency trading strategy and earn money passively.
The automated trading bot is not just going to help you translate all of your manual trading strategy but will make a self-governing program that can run 24/7 and trade coins on your behalf. But please bear in mind that there is “no magic” here or in any other bot in the market matter, are no magic money machines and if your trading tactics and strategy is not good enough, you won’t earn money, you actually might lose some. Just like you would when trading manually.
Stop-loss optimization with Bitcoin Evolution
Each trading strategy has several parameters that must be optimized in order to obtain the best efficiency. Depending on the mathematical model used, each parameter is the subject of an optimization and machine learning process, based on the historical price data. This process is not the subject of this paper. Our main objective here is to reveal the importance of the GSL level and the impact of this parameter for the trading algorithm efficiency in an Bitcoin Evolution ATS.
Stop losses and automated trading systems
In Bitcoin Evolution a trade with a very small profit target cannot use a stop loss with the risk to reward ratio higher even than 1:1. It is obvious that a trade with a target of one pip cannot have a stop loss of one pip. In the same idea, a trade with a target of ten pips cannot use a stop loss of ten pips. In a case like this the probability for a losing trade is 50% or even higher in a trading environment with a variable spread. A different approach must be used for ATS (automated trading systems) aka Bitcoin Autobot, especially for the HFT (High-frequency trading) systems where the purpose is to make a large number of very small trades.
The most important part within the design and implementation process of automated trading systems in any financial investment firm or a company is that the capital and risk management solution. From the beginning of the principle that the trading system must run fully automated, the overall design process gets several particular aspects. The global stop loss is a special approach for the risk management strategy that will ensure a positive expectancy in algorithmic trading.
Even though these bots sound great, a word of caution is due. Make sure to understand the Pros and Cons of trading before venturing into automated trading. Once you understand how and what the bot does, you can utilize Bitcoin Evolution full potential and give your eyes some off-screen time while still not missing out on the trading gains
A case study based on an already optimized trading algorithm will be used at Bitcoin Evolution to reveal how important the risk level optimization is, in order to improve the efficiency of the trading software. The main accurate criteria are as usual the profit maximization together with the minimization of the allocated risk, but these two requirements are not enough in this case. Bitcoin Evolution uses an additional optimization criterion and the main directions to build a reliable solution for an automated capital and risk management procedure.