For several years now, artificial intelligence has been at the heart of our society’s challenges. As Elon Musk announces that the first fully AI-driven vehicle will be ready this year, technology can also be your best bet for optimizing your Bitcoin and cryptocurrency trading strategy. While trading algorithms on the financial markets were born in the 1990s, the cryptocurrency market lends itself perfectly to the democratization of automated trading bots aimed at a wide audience ranging from the amateur trader to the pro trader. In this revolution of cryptocurrency trading on the markets, a company has taken a step ahead: Napoleon AM, led by financial experts, is deploying a trading bot offer called NapBots, which could convince you to review your trading strategy!
Warning : This special edition of the Trading Tribune is presented to you in partnership with the company NaPoleonX. Crypto investments are risky by nature, do your own research, and invest only within your financial capacity. This article does not constitute an investment invitation.
“Classic” trading strategies
Let’s first take a quick look at the different classic trading strategies on the markets that you may have already implemented using your gray cells – not yet augmented by any artificial intelligence.
The first distinction to be made when talking about trading strategy is of a temporal nature, indeed on the one hand we find the short term strategies also qualified as speculative. They aim to analyze and anticipate price variations over short periods. On the other side we find long term strategies which aim to invest in increasing the value of an asset over a long period. The use oftrading algorithm is more relevant when choosing the option of a short term strategy, in this context technology can indeed be much more efficient than the human brain.
The second distinction is made between strategies of “Swing Trading” and of “Position Trading”. With a strategy of “Position Trading” as the name suggests you will you position on an asset or in this case on a crypto with the objective of benefiting from an upward trend on several weeks or even several months. Conversely when you opt for “Swing Trading” the crypto holding period is much shorter, here we will no longer count in weeks or months but in days, see even in hourss. Once again you will understand, bots and algorithms bring all their intelligence to a “Swing Trading” context rather than to “Position Trading”.
While on traditional financial markets the development of high frequency trading has developed widely in recent years to benefit from price variations over a short or even very, very short time (it is not uncommon to speak in milliseconds, on the market of cryptocurrency), taking into account transaction costs requires reviewing the timing of Swing trading so as not to be overwhelmed by unforeseen costs.
Trading strategies enhanced by the power of algorithms and artificial intelligence
These classic trading strategies – in the sense that they do not involve technological innovation – are therefore now more than ever revolutionized by super robot traders leveraging the best artificial intelligence algorithms.
The first technological innovation experienced by the finance sector is that of high frequency trading in the late 1990s. High frequency trading strategies take advantage of flash price drop often caused by transactions involving very high volumes. High-frequency trading algorithms manage to enter the market with precision when the price drops extremely quickly. Algorithms much faster than humans have seen their number increase significantly in the markets.. If on paper this strategy is attractive, it nevertheless requires very high transaction volumes to generate good profitability, once again, their use in the crypto market can be counterproductive when takes into account transaction fees.
That’s why when you are looking for a robot trader for your crypto, the majority of traders will seek robots dedicated to unearthing medium and long term cryptocurrency trends, these robot traders thus minimize potential risks.
The second technological innovation in financial markets is the “Quant Trading” algorithmic. Financial engineers have thus developed algorithms packed with artificial intelligence that constantly analyze financial markets by focusing on two main metrics that are the evolution of prices of course and the volumes traded.
Mainstream financial markets have greeted technological developments with mixed eyes, with established traders for years looking down on the prospect of being replaced by an army of robot traders. The cryptocurrency markets, for their part, offer many more possibilities for deploying technological solutions to optimize your trading strategy. Initially, traders in the cryptocurrency markets mostly went back to traditional strategies.
However, today the company Napoleon AM with his offer NapBots intends to democratize the use of trading bots and more broadly the deployment of artificial intelligence in cryptocurrency markets.
Offered by NapBots, Napoleon AM’s company which aims to democratize the use of trading bots and AI in the cryptocurrency market
The NapBots offer that we took the time to study in detail in a previous article you, the informed reader of the cryptodidact trading forum to enter the era of augmented trading in a simple way.
In summary, the NapBots offer is built around two main solutions:
The first is that of a toolbox, for most experienced traders it will allow you to configure your very precise trading strategy while benefiting from the different functionalities of the Napbots : automation, analysis and decision support. This offer will delight the most experienced of you.
The second is for the greatest number, whether you have already tried your hand at trading or not, the offering is built around a cryptocurrency trading marketplace. It will allow you to copy the strategies of the best traders amateurs and professionals, all through a bot to automate transactions. All in full transparency as to the profitability of the proposed strategies. Indeed, in order to best choose the trading strategy you want to follow, you will have the possibility of visualize the experience of the team as well as the quality of the strategy deployed in the crypto markets.
With the offer NapBot, Napoleon AM is taking part in a revolution which appears to be more and more essential in recent years. This revolution is that of social trading which is a hit, allowing trading and community spirit to be combined among traders.
With his ergonomics and the multiple possibilities offered by NapBots in terms of copying and analyzing the trading strategies presented on the MarketPlace, we find the best of both bot trading and social trading worlds. In fact, on social trading platforms, the major drawback is that you do not own the cryptocurrencies you trade, you transfer this property to the platform in the vast majority of cases and you therefore take a major risk; the risk that the platform is subjected to a cyber attack, for example. By going through Napbots, you keep control over your cryptocurrencies while taking advantage of a tailor-made offer for the market with dedicated strategies that you won’t find on other social trading platforms.
Trading bots that are democratizing in the cryptocurrency market could thus potentially see their use increase significantly in traditional financial markets. Of course these trading strategies involving technological innovations, they do not guarantee guaranteed profitability. Thus, the risk of a loss of capital should always be taken into account when entering the trading bath, whether you opt for a classic strategy or not.
One thing is certain: the NapBots trading bots have perfect ergonomics for a very easy step-by-step handling that will reassure both amateur and experienced traders.
In a few clicks connect the NapBot to one of the available cryptocurrency trading platforms, choose your strategy by having all the necessary elements: profitability, type of cryptocurrency, daily, hourly, weekly strategy. Finally, select the investment you want to make in your trading strategy and voila, the trading bot will work for you. A solution that now appears essential for no longer let your cryptos sleep on markets open continuously seven days a week.
Do you want to get started in bot trading and benefit from the technology developed by Napbots? We advise you to go and test the service for free, you will be able to view the different trading strategies available by simply creating your account, to activate the possibilities of trading and copying the strategies. All you have to do is choose from the offers offered by Napbots.
Guillaume has been passionate about Blockchain technologies and cryptocurrencies for several years now. He strongly believes in mass adoption of these in the years to come. Eager for crisp news and always on the lookout for the latest trends in the cryptocurrency market, he takes pleasure in sharing all their secrets with you!