In the trading world, many participants focus on conventional processes like stock trading for higher profits. Many users try other choices like options trading to earn better returns in a short time. The potential for revenue growth is certainly high with both, as long as you use the right tools for the process.
Using applications integrated with trading bots is a common practice for many to get automated and efficient mechanized asset transactions. Trading bots as computerized algorithms are helpful, but you need to invest in a credible option in the market.
To decide which trading bots to trust for Automated Stock Trading, you should check your options carefully through a series of tests. Here are some points to consider in this context.
Types of Trading Bots and Their Behavior- Explained
The behavior and performance of trading bots can vary regarding their specific points. When you are making your choice, you should take that into account.
Bots for Expiry Days
Here, it is vital to consider three versions:
• Machine Learning bot
• Short Strangle Trading Bot (Auto Adjustment)
• Short Straddle Trading Bot (1% Bank Nifty)
Notably, all three types assure consistent returns for valuation and other details on maximum expiry dates. In terms of accuracy, the ATS type of trading or Auto Adjustment Strangle Bots is the most accurate. So, you can expect high profits that are consistent with these bots.
Typically, the 1% BNF Short Straddle Bots and Machine Learning Bots showcase similar results during the time of expiry. The profit count for the Auto Adjustment Short Strangle trading bots is better than the average profit per trade of the former two for the entire lot.
In this situation, you should use tools like Trading Bot Backtesting to evaluate conditions like the drawdown amount. One of the main ones to consider for understanding what trading bot to select is the maximum drawdown with the bots for the major strategies on the expiry dates.
In such a case, the auto adjustment short strangles bots have a relatively low drawdown over some months. Despite significant volatility in the market, the ATF type of trading bots handles the risks better.
For example, you have INR 3 lakhs of capital for the trade. In this case, the machine learning bots have -3% maximum drawdown, auto adjustment short strangle bots have -1% of it, while the 1% Bank Nifty Short Straddle trading bots have -6% of this drawdown rate.
Bots for Breakout Days
Three types are available for profits in the trend/breakout phase. Based on their insights, you can complete trades every day.
• Machine Learning Bot
• Golden Ratio Futures Bot
• 920 Bank Nifty Short Straddle Bot
All of these types of trading bots have a directional nature. So, users can expect higher profits with them, like when the 920 Bank Nifty Short Straddle bots make a directional move on one side.
Overall, the average profit you can expect from these three versions is the most noticeable compared to others. So, regardless of the day, you can profit nicely from these versions.
Among the three types here, machine learning trading bots show the most stability with increasing profitability compared to the other two.
As for BNF Strangle Bots and Nifty 920 Short Straddle trading bots, there are specific days when they are most profitable in general. For the former, it is typically Fridays, while the latter recorded most profits on Wednesdays and Thursdays.
How Should You Make Your Choice for Trading Bots?
Ultimately, there are more points you should consider when looking for a trading bot. Here are some of them:
Firstly, you should take into account what your primary interest point is with the trading bots. Consider if you require automatic trading benefits or if your main priority is understanding market volatility and trends. Based on such points, you can choose a platform that will fulfill the main requirements, at least most of the primary ones.
Some apps are equipped with preset strategies for varying trading markets. You can take the help of tools like Trading Bot Backtesting to check what mechanisms and practices are active on these solutions. Take into account if the bots are running with specific strategies or not.
Analyze the bots to understand the complexity of the technologies in use. Even while creating a customized solution, many developers focus on using No Code Bot Builder and implementing specific technologies. Check what the important ones in different model variations and their complexities are.
Customization ability in apps is essential. So, when researching different trading bots, check if the settings are easy to configure and update.
Check the costs related to the trading bots, like if there are hidden costs. Different solutions will have varying costs, so consider many options within your budget and above. Also, consider the features you will get with each version, and choose one that meets both your maximum pricing and feature-based requirements.
You can make the right choice by considering various aspects, like how the trading bots work and other essential selection points. Study the options well and check what offers and benefits you can expect from the preset ones. Then, make the final decision.