Crypto Investment Bot Strategies for a Changing Market Landscape



Many crypto market trends in 2024 are already forming and will define this year for the world of cryptocurrencies. The approval of Bitcoin ETFs, new announcements for several DeFi platforms, and a frightening situation in many traditional fiat economies indicate that the market for mainstream coins will steadily grow while some of lesser known tokens may explode in popularity. You should be ready to capitalize on these changes in the crypto industry.

We expect some automated crypto trading strategies to show outstanding results for people who are ready to put in the work. A contemporary investor can choose from a wide range of different crypto investment bots to create a robust system and diversify their investments. Depending on your preferences and risk style, you should be able to find something that works well in 2024.

Profitable crypto bot strategies in 2024

We believe that traditionally strong approaches like grid bots and DCA buying will be efficient during the next year. Building custom systems can be quite hard due to the unpredictability of the market and moments of volatility that are impossible to forecast. We are entering a tumultuous period and the situation in the global economy will inevitably throw some odd balls into the mix.

Using preset solutions is always a good idea. However, many investors are not happy with consistent long-term strategies that produce relatively low profits over lengthy periods. People interested in slightly riskier approaches that can generate higher returns may look at novel adaptive crypto bot strategies that have appeared recently.

The advancements in the field of artificial intelligence allowed many companies to roll out new exciting products capable to delivering impressive results and outperform average retail traders consistently. One of the best examples of the implementation of an expert AI system is the AI-assisted statistical arbitrage bot from WunderTrading. This system can manage a large portfolio of assets and change its composition based on the performance of tokens and the current market situation. It is a complex artificial intelligence created by a complex machine learning algorithm.

While on the topic of arbitrage bots for crypto and other staples in the trading automation industry, you should definitely try to incorporate various tools on a larger scale and use bots that may act rarely but with a near-perfect outcome. Triangular arbitrage bots are excellent examples. Set them up to trade only when favorable conditions occur and wait patiently until they are triggered and generate profit.

We have many other examples of interesting ways to utilize the power of trading automation in 2024. Below are some of the systems that may be quite useful for a crypto investor interested in using bots to earn money in the world of blockchain.

Using the time-tested DCA approach

Distributed cost average is a reliable way to acquire assets at a discounted price by splitting a single order into multiple purchases spread across a certain period instead of buying in bulk. When used during a short-term price retracement or a downtrend, it is possible to “hit” closer to the bottom to add coins to your portfolio for long-term holding.

Many Bitcoin enthusiasts use this particular approach and use sentiment analysis for crypto bots to identify the best moments to buy. Some engage in DCA manually and place orders daily or weekly using a small portion of their monthly income to buy coins. Historically, Bitcoin has been performing outstandingly well and could continue appreciating throughout the next two decades allowing thousands of patient investors to benefit by the time they plan to retire from the workforce.

DCA is also used in automation to create systems that perform the algorithm of creating multiple short or long market positions with a single exit point in the future with a predefined target profitability level. For example, a bot may start purchasing $BTC at $45,000 during a price retracement and buy small amounts until the price moves to $44,800. An exit order is placed down the line at $45,500. When the price bounces back, all orders are executed at a profit.

While many believe that using DCA bots for crypto is not the most efficient strategy for money making, it is a viable approach used by thousands of investors interested in creating a source of passive income. Once set up, these robots can work autonomously without any additional supervision, although you should keep an eye on their performance and make adjustments when needed.

Here are some advantages of DCA buying or running a DCA bot:

  • You can acquire assets at a lower price on average to amass a large portfolio. It is a viable long-term strategy.
  • DCA is a safe trading technique that produces small amounts of profits consistently. It can be used to hedge against riskier market positions.
  • Many automation vendors including market leaders like WunderTrading offer easy-to-use DCA bots that can be launched with a couple of clicks.

Statistical arbitrage systems in 2024

A whole branch of economics is dedicated to exploring various approaches to building a perfect statistical arbitrage system. It is a portfolio management method based on careful analysis of hundreds of different assets that have correlations in different metrics. Despite the fact that it is hard to use fundamental analysis for crypto bots, you can still use many concepts of statistical arbitrage to identify groups of assets that have similar price action dynamics, liquidity, trading volumes, sentiment, and other metrics.

Since you use the same approach to analyze all assets to identify statistical similarities, once you figure out which method of analysis to use, it is quite easy to find correlated assets. However, managing a large portfolio consisting of several dozen coins is a nightmare for a single retail trader. The inconvenience and complexity of running a statistical arbitrage system is the reason why only financial institutions or coordinated groups of retail traders use it.

Thankfully, you can use bots to trade on your behalf and create a statistical arbitrage system that will be manageable by a single investor. It needs dedication, expertise, and time to create a system like that, but many believe that results are worth the trouble.

On the other hand, you can find novel solutions like AI-assisted statistical arbitrage from WunderTrading. You only need to specify the parameters of the system and which assets to trade. Then, the bot will do everything for you and change the composition of your portfolio according to its instructions.

Here are some advantages of running a statistical arbitrage system enhanced with automation:

  • It is one of the most efficient approaches to investment. You can generate sizeable returns by carefully navigating the market and adjusting your portfolio regularly.
  • You can run heaply a system that previously required hiring of additional retail traders. The cost of investment is relatively low.
  • Some companies offer unique and groundbreaking solutions like statistical arbitrage bots enhanced with expert AI systems.

Grid is one of the best crypto bot strategies in 2024

As mentioned previously, DCA is a common approach to asset acquisition. However, this system can be enhanced with a different technique of order placement. Grid bots, as the name suggests, create a mesh of lines on the price chart forming a net. The visual pattern is a result of buy and sell lines.

The bot uses the DCA approach to create buy orders, but also places sell orders for each of the positions. Many experts believe that grid trading bots for crypto are the safest and most efficient way of utilizing automation if you lack the experience to build a custom automated trading system.

Indeed, the approach can produce good returns consistently. Some users say that returns are lower than using some day trading methods manually. While it is true, one should remember that automation is not the main way of generating profits. It is a tool to extract consistent returns from your investments in the crypto market and hedging against various risks associated with holding risky positions.

The benefits of running this bot are quite apparent:

  • It is a “plug & play” product that you can launch within minutes and include it in your crypto portfolio without many considerations.
  • With properly placed delayed orders (stop loss and take profit), you can avoid losses and generate small profits reliably.
  • Grid systems are cheap. You can set up multiple bots for a low price of a monthly subscription.

Risks of crypto bot trading in 2024

Many people who inquired about using automation are familiar with commonly discussed risks like overall economic uncertainty, technological risks, and the lack of diversification when overinvesting in bots. However, there are some very important types of risks that should also be considered when engaging in automated trading.

Here are some specific issues:

  • The only reliable way of forecasting the price is using technical analysis for crypto bots. Every single coin is a speculative asset that does not have any real investment behind it. Fundamental techniques simply do not work here since you can’t evaluate a token based on the amount of workers employed, brand recognition, physical assets and intellectual property owned. Sentiment is the only important thing here and it can be manipulated.
  • On-chain data analysis for crypto bots is unreliable. Using data from networks to make predictions about price action rarely brings good results to average retail traders. You must understand how to read the data and understand its implications. It takes years of learning about the blockchain technology, various use cases for certain DeFi products, and more to start understanding how on-chain analytics help you predict price movements.
  • Sudden price movements. Market volatility & crypto bots is a decade-old discussion in the world of crypto trading. Some recommend completely abstain from running bots during periods of high volatility and suggest turning them off just before important news hit the market. Others believe that some high-frequency trading approaches and scalping techniques work well when prices fluctuate. This uncertainty is the main reason why you should be very mindful of volatility and its implications.

How to reduce risks when using bots in 2024

Retail traders interested in using automation in their investment activities should use all commonly employed risk management techniques to reduce losses. Traditional methods include active diversification, avoiding potentially compromised assets, and choosing reliable partners to trade and invest.

However, there are some risk mitigation approaches that work well for automated trading systems specifically. Here are some of them:

  • Never forget placing delayed orders. Stop loss and Take profit are not only good ways of reducing losses and securing profits. You can use them to set specific profitability goals for your robots and set up exit points that make sense within your particular strategy. It is important to use them for all new market positions.
  • Try using demo accounts to test your robots. Some automation vendors like WunderTrading offer services like paper trading crypto bots to check how some of your investment ideas work when applied to the market in real time. Using demo accounts like mock trading at Binance to trade with virtual funds is a great way to testing waters before committing to investing a large sum of money.
  • Don’t ignore the history. Training and testing your systems in real time is great, but you should also backtest your robots and technical analysis strategies against the market history. TradingView, a powerful charting platform and a popular trading terminal, allows users to use their “Strategy Tester” tool to see how many positive or negative alerts are created by your strategy. The backtesting functionality at WunderTrading is an excellent instrument to check if your bots work well before testing them in real time.

These tips will help you avoid unnecessary losses and secure profits consistently in 2024. It is extremely important to extensively test your strategies until your find something that will work well in the long run.

How to get started with automation in 2024?

We strongly believe that using automated trading systems is the best way to invest in the crypto market during periods of uncertainty. If you want to start your investment journey in the year of the Dragon or plan to expand your portfolio, we strongly suggest exploring novel products like AI-assisted statistical arbitrage, new grid bots, and other new products conceived by automation vendors like WunderTrading.


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