What are Crypto Trading Bots?

Trading bots are basically software programs that interact with the bitcoin exchanges to analyze trading data and then use this information to place buy and sell orders. As the bitcoin market has grown in popularity, so has the use of bitcoin trading bots.

How does it work?

It works on a pre-programmed set of rules to monitor activity in the market.

The crypto market is open 24*7 and is highly volatile, which is why the need for bots is more prevalent than ever before. Since many people choose to trade Bitcoin passively and are unable to dedicate the time required for dynamic market analysis. As such, crypto trading bots will be beneficial for users to conduct efficient trading.

Crypto Trading bots can follow price fluctuations taking advantage of highs and lows to make a profit by placing orders at speeds that are impossible to perform manually.

When setting up these bots, you can choose between your own customized strategies or popular pre-designed ones created by others. Different market types, tokens, and situations will require different trading strategies. Identifying the most suitable strategy for each market will require some research and personal judgment from the user.

Benefits of Crypto bots:

1. They eliminate emotions – Unlike humans, bots will only make trades based on the data and trends available, so emotions and impulses are eliminated from the decision-making process. This translates into less stress and anxiety for the trader and therefore greater peace of mind by delegating trading to crypto bots. It is therefore a health benefit by avoiding stress which can be intense in trading.

2. They run around the clock – The crypto market never sleeps and bots can also operate around the clock, so the user can continue trading even while they are asleep or otherwise occupied. If you sleep and the price of a cryptocurrency moves, the crypto bot will react and execute the orders that you have programmed in your trading strategy.

3. They are faster and efficient than manual trading – Trading bots also have the advantage of being able to work faster and more efficiently than human trading manually. When specified correctly, they can analyze data and execute trades across multiple exchanges and multiple cryptocurrencies.

Since computers respond immediately to changing market conditions, trading robots are able to generate orders as soon as market criteria are confirmed. As soon as a position is entered, orders are generated automatically, including protective stop loss and profit targets.

The advantage of automatic cryptocurrency trading is the speed of reaction and execution of buy and sell orders programmed in trading strategies, superior to manual human reactions and trades.

4. Copy trading / social trading – Another advantage of crypto bots is that you can use the copy trading or social trading function if it is available on the automatic crypto trading platform you are using. For people without trading skills, this is the possibility to copy strategies of professional traders to their crypto account and benefit from the know-how of these professional traders.

Many people new to trading use crypto bots only with the function of copy trading.

5. Possibility of backtesting trading strategies

Thorough backtesting allows you to evaluate and refine a trading strategy, and to determine the results of the system, i.e. the average amount that a trader can hope to gain (or lose) per unit of risk.

The trader can therefore test his trading strategies in an unlimited way in order to refine the programming of his strategies before going into real mode on the markets!

Drawbacks:

1. They need monitoring. – You can’t just set a bot running and forget about it, you will still need to keep an eye on how it’s performing and make adjustments as needed. Also, a bot will not take into account external factors that may affect the market, such as world events or breaking news, so may make poor trades without input from a human trader.

2. You need knowledge. – You require some experience and knowledge. Although bots may come pre-set with trading strategies, most perform best when reconfigured to the user’s specifications. So the user will need to have an understanding of how the market works and the technical aspects of trading with a bot.

3. They can present a security risk  – Bitcoin trading bots communicate with exchanges through Application Programming Interfaces (APIs), which means two machines are working together without human intervention. The centralized nature of bots and exchanges can make them vulnerable to hackers so you will need to take steps such as keeping your API key secret and switching off automated withdrawals.

How does HERMEX work?

HERMEX features a web-based frontend, powered by NodeJS and features a convenient dashboard to see all data, pairs, and signals. This is an npm tool running on NodeJS, using a web-socket for communication. Frontend via the web interface.

This software is designed as a raw unfinished codebase with working functionality.

It is intended to be incorporated and changed into an actual working product, as a code piece, you may use for your own product. 

HERMEX Key Features to maximize your profit:

• Make money while you sleep: 24/7 completely automate trading. Free yourself from concentrating on the volatile market!

• Automated Trading: Set custom automated trades and never miss a rally or get caught in a dip.

• Securely Trade Across Exchanges: HERMEX is a beginner-friendly and safe platform to send automated trading instructions to your favorite exchanges, including Binance, Coinbase, Bitmex, etc.

• Trigger actions when the market changes based on clear indicators

• Manage volatility and maximize profits

• Simulate your trading without fear. Practice daring new strategies risk-free while mastering HERMEX tool. Even Backtest your bot and your strategies, so you can keep tweaking until it is effective.

Which exchanges are supported in HERMEX?

It is already packaged with the below exchanges and can be easily configured to have more exchanges.

• Bitmex
• Binance
• Coinbase
• Bitfinex
• Bybit
• FTX

Which strategies are included?

HERMEX comes with the below strategies that a trader may need as well as watchdogs and signal indicators.

• Stoploss
• Risk Reward Ratio
• Trainling Stop
• CCI
• MACD
• Pump and Dump Detector
• Pivot Reversal

Can it be useful to me?

Very much so! HERMEX allows you to interact with the crypto markets even when you’re physically unable to do so. Their main goal is to relieve you of extra stress, especially when it comes to nighttime trading.

Source code included, no monthly fees:

This is not a SaaS. Therefore there are no monthly fees!
Pay once, use forever.
Investigate the source code, make sure it conforms to what you need, change it, host it yourself – Maximum flexibility and control.

Security: Because the source code is included you can vet it yourself or use any method to audit the codebase if you want to. No risk because you have complete control of the source code being executed.
No third party involved!

HERMEX Dashboard Usage:

HERMEX comes with a user-friendly dashboard that will show you all the pairs with signals for a quick view.

You can disable/hide each period. By default, there are 15 minutes and 1 hour. Click on the buttons to toggle them.

Above the pair list, you can easily see your current orders and positions.

You can easily execute automatic strategies as well as perform manual orders by looking at the analytical signals provided on the dashboard.

You can click on any pair to open a highlight focus section s. When doing so you also get a trading-view chart.

A quick check-up on the signal s can be done in the dashboard

To utilize the export and import functionality there is a visual interface you can use and specify the details.

Here you can see the output results of backtesting. It notes the signals with time stamps and relevant data, depending on the criteria you selected in the form before:

 

 

Configurable Charts

So, there you have it. HERMEX Cryptocurrency trading bot can be very helpful in letting you generate a profit from your investment. Also, it can take a lot of the stress, repetition, and boredom you would have had to face if you were to do everything manually from scratch.