Choosing Strategies for Successful Automated Trading on WunderTrading



Smart retail traders usually want to achieve consistency and earn money in the long run. People who come to just make a quick buck often fail to reach their fullest potential and lose money. It is important to choose an appropriate strategy that allows you to perform well systematically and make correct forecasts more often than not.

It is even more important for investors interested in using automated crypto trading techniques to enhance their trading strategies. Contemporary bots are extremely useful when applied correctly, but you do need to find a good technical analysis system to trigger them.

Understanding the Power of Automated Trading on WunderTrading

Some automation vendors provide endless money-making opportunities to their clients. For example, WunderTrading has everything a crypto investor might find interesting. Whether you want to run a complex automated trading system or look for a good platform for social trading, the WunderTrading platform will be a good choice.

Algorithmic trading is a good approach to crypto because of its speculative nature. The only thing that you will need to use the power of automation is advanced trading software capable of providing the necessary tools to run a complex ATS.

Here are some products and features of the WunderTrading platform that you will find quite appealing:

  • Multiple types of preset bots. DCA buying is a most commonly suggested strategy in the crypto community and for a good reason. Distributed Cost Average is a reliable way of acquiring assets at a discounted price by splitting a single purchase into multiple market orders. DCA and GRID are two types of bots that can be launched on the WunderTrading platform right away.
  • Integrations with many exchanges. The cryptocurrency market is still evolving and people are figuring out its quirks. It will take a couple more decades until everything settles and we have a good idea of which trading platforms stood the test of time. Right now, you should look for automation vendors capable of connecting to as many different centralized exchanges as possible. WunderTrading is integrated with Binance, OKX, Kraken, Coinbase, and many other industry leaders.
  • Advanced social trading elements. The marketplace on the WunderTrading platform is a great place to search for experienced managers and retail traders who you can follow and copy their trades. Clients of the platform can select from a large pool of contractors working on dozens of centralized exchanges and using all sorts of strategies and risk management methods.

The Benefits of Automated Trading and Why it's a Game-Changer

It is quite easy to pinpoint the main algorithmic trading benefits. With the power of automation, modern retail traders can do what was possible only for large teams of managers just two decades ago. From advanced methods of risk management with automated trading to unique opportunities for people interested in diversification, bots are excellent for everything!

Here are some automated trading advantages that you should be aware of:

  • Unwavering determination and decisiveness. One of the biggest weaknesses of any human trader is our very nature. We are prone to overreacting to certain events, miscalculating risks, and doubting every decision. Robots will trade within the limitations of your strategy and never doubt their decisions allowing them to outpace other traders and achieve incredible levels of consistency if you have the right set of indicators to trigger them at the best possible moment.
  • Non-stop trading. The crypto market works around the clock. Retail traders often miss valuable entry points because they sleep when the market wakes up on another side of the planet. Bots do not need to make such pauses. They continue working even when their owners are relaxing or eating out with friends. You should also note time-saving benefits of automated trading.
  • Incredible flexibility. The WunderTrading platform has a lot to offer to its clients. You may start using DCA and GRID bots, create a complex custom automated trading system or use the marketplace to enjoy the benefits of copy trading. With so many instruments at your disposal, it is quite easy to diversify your investments.
  • Integration with many popular platforms. If you want to automate a TradingView strategy that promises huge profits, you can easily do so! An automation vendor can receive alerts directly from the TradingView website through code inserts in the Pine Editor. The process requires some time to get a good grasp on how it works, but it is a smooth sailing after that.

Choosing the Right Strategies for Successful Automated Trading

Many experienced retail traders believe that any automated trading strategy can be successful as long as you buy the right bot and focus on the right asset. However, the most important factor is the success rate of your technical analysis strategy. Crypto traders prefer using TradingView to deploy their analytical systems that often include dozens of indicators.

To achieve profitability, one must pick a good strategy that produces a sufficient number of true positives. Since the capabilities of modern automation platforms and the flexibility of the TradingView chart allow users to build all sorts of ATS, it is a good idea to focus on choosing a reliable strategy.

Here are some interesting ideas to play with:

  • Trend-following strategies. Trading within a strong price vector is always the safest way of making money. You need to identify the trend and place market orders to capitalize on the bullish movement. Monitoring the strength of the current price dynamic is crucial. Use technical indicators like Moving Averages (MA) and Moving Average Convergence Divergence (MACD) to search for new trends and evaluate their strength.
  • Mean-reversion strategies. One of the most dominant theories in the field of technical analysis is that prices tend to converge back to mean prices. It is close in essence to the concept of price retracements (corrections) but has a little bit more depth. Moving Averages, Bollinger Bands (BB), and MACD can give you a rough estimate of the mean price and the current deviation. Note that this approach works only for already established digital assets like Bitcoin or Ethereum.
  • Breakout strategies. Support and resistance levels are some of the most commonly used instruments in technical analysis. They help retail traders identify potential targets for stop loss and take profit orders. It is also a very simple way of finding an entry point for a market position. When the price breaks through a strong level, it means that a new trend may form allowing for many opportunities for profitable trades.

The Importance of Backtesting and Optimization in Automated Trading

After picking a consistent strategy that fits your risk style and investment preferences, you need to start thinking about optimizing parameters for better performance on the WunderTrading platform. There are different ways of adjusting the settings of the bot to make it a little bit more efficient. Changing position size, delayed orders, and other parameters will make it easier to manage risks and aim for profitability goals.

While optimization is quite important, one thing stands out as an imperative. This thing is backtesting in automated trading systems development. When you are creating a new bot, you should be focusing on iterating its launches with different settings, technical analysis strategies, and timings.

There are many ways to test your investment ideas:

  • Use the strategy tester on the TradingView platform. This tool is excellent for people who want to check out a new analytical system or experiment with novel technical indicators. It works on the chart without the need of connecting external platforms.
  • Explore the backtesting functionality on the WunderTrading website. Any bot you create can be tested against the market history to verify its efficiency.
  • Regularly monitor the performance of your automated trading systems. Use the analytical tool in the WunderTrading dashboard to get an overview of your bots and their results.

Risk Management in Automated Trading: Protecting Your Capital and Minimizing Losses

It is important to use various risk management techniques for automated traders using stop-loss orders and position sizing rules. Here are some tricks that you may find interesting:

  • Employ ratios for delayed orders. Many experts recommend using various ratios of SL/TP orders. For example, a 1:3 ratio means that for a 30% take-profit order you should place a 10% stop-loss order. It is a riskier style as it requires the market to shift significantly in the favorable direction. Such ratios work well for long-term positions. 1:1 is a ratio used for shorter trades.
  • Limit the size of any given position to a certain portion of your portfolio. You should never allow your bots to take over your portfolio. Make sure to limit them to 10% — 15% of your assets for a single market position.
  • Diversify at every given opportunity. Investing in multiple asset classes is something that only wealthy investors can afford to. However, you can invest within the confines of a single asset class. For example, you may use various types of bots with different risk levels to create a balanced portfolio that will be protected from unexpected events in the market.

Maintaining Discipline and Emotions in Automated Trading to Stay Profitable

Some retail traders may lose their calm and discipline when something goes wrong. It is a big mistake, especially in automated day trading. You should try controlling emotions in automated trading and stay calm when the market throws everything sideways. Avoiding impulsive decisions is a skill that every retail traders should master.

It is true even in crypto copy trading where you don’t even have to trade. When a copied trader starts losing money, do not hastily switch to another one. Just like in traffic, when you merge into another lane, your previous one starts moving faster.

In all cases, regardless of which automated trading strategy you are using, sticking to the trading plan established after multiple testing sessions is the best course of action.


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