Should you use an automated advisor when trading cryptocurrency?
Cryptocurrency pairs are characterized by enormous volatility, with their prices changing by tens of percent within a day.
Trading cryptocurrency is quite complex and time-consuming, so many traders reasonably ask: why not entrust this type of trading to a trading advisor?.
A well-tuned robot will save you from spending a lot of time in front of a computer screen and should generate high profits when trading cryptocurrencies.
After all, the technique of trading cryptocurrencies is practically no different from the technique of working with regular currency pairs, so why not use an advisor.
But in practice, not everything is so rosy. Most advisors trade differently even on currency pairs, so you'll have to try dozens of scripts before you find a profitable one.
For example, of the advisors available on my trading platform, not a single one has shown decent results on cryptocurrencies:
The result is slightly better on the D1 time frame, but here too the profit is minimal and amounts to no more than a couple of percent per annum.
The most effective option is to write the script yourself or order a custom script, but this requires carefully drafting the technical specifications for the programmer.
No one can guarantee the profitability of a ready-made robot; cryptocurrency prices fluctuate incredibly quickly, making it quite difficult to take all the nuances into account when creating a trading robot. Therefore, if the algorithm fails, the robot will quickly drain your deposit.
The most appropriate approach at this stage would be trading using pending orders with simultaneous stop-loss and take-profit settings. This option is less risky than using expert advisors.
While I personally haven't yet found a cryptocurrency advisor I can recommend, there's nothing stopping you from trying to find one yourself.
Before using the robot, we strongly recommend that you thoroughly test it on cent accounts or accounts with a minimum deposit.
