What are the Most Popular Trading Bot Algorithms?
Trading bots use complex mathematical formulas, often known as algorithms, to determine the best strategies for high-profit gains. In simple terms, a trading bot algorithm is a unique code that has the buy and sell signals built within. But what are the most popular trading bot algorithms, and how do they differ? Let’s find out! Trend-Following Algorithm The trend-following algorithm does not predict or analyze past transactions. Instead, it analyzes the market trends and finds a favorable position. Ideally, the algorithm ensures a purchase when prices are rising and a sale when prices are decreasing. You must have noticed that crypto trading is emotive, and traders often fear missing out (FOMO). This is especially so when influencers make certain remarks that affect buying and selling decisions. Now, the trend-following algorithm…